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LatestStartup And Fundraising 20 September 2026

CBDT Halts Arrests, Shifts to Trust-Based Tax Recovery

The Central Board of Direct Taxes (CBDT) has ended the practice of arresting taxpayers for tax recovery, signalling a strategic move from coercion to trust. Announced at the Viksit West Bengal Summit 2026, the policy seeks to ease compliance pressures on India’s expanding middle class and promote voluntary tax compliance.

Key Change: The Central Board of Direct Taxes (CBDT) has stopped using arrests as a tool for tax recovery, moving toward a trust‑based approach.

  • Policy shift announced at the Viksit West Bengal Summit 2026.
  • Aims to ease pressure on India's growing middle class and improve compliance.
  • Signals broader tax reform efforts under the government's agenda.

For full details, read the article here.

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CBDT Halts Arrests, Shifts to Trust-Based Tax Recovery | Legal Suvidha