Income tax collection in Bihar and Jharkhand nears INR 20,000 crore in 2025–26, officials say

Income Tax collection from Bihar and Jharkhand in 2025-26 stood at around Rs 20,000 crore, a senior official said on Thursday. The official also said former India cricket captain M S Dhoni paid the highest individual tax across both states. Officials said they expected higher collection in the current financial year.

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Principal Chief Commissioner of Income Tax Bihar -Jharkhand, Dr D Sudhakara Rao, told reporters the total included Rs 12,000 crore from Jharkhand alone. Rao said about 70 per cent of the overall collection came through tax deduction at source, or TDS. Rao did not share M S Dhoni’s net tax return details.

Income Tax collection in Bihar and Jharkhand: top payers and sector impact

Officials said Central Coalfields Limited CCL, Bharat Coking Coal Limited BCCL and CMPDI were among the biggest corporate taxpayers. Rao said, "During the previous financial year, the mining activity was a bit affected due to heavy rains, which impacted the collection. We hope to exceed the Rs 20,000 crore mark in tax collection during the current financial year,\"

Rao said M S Dhoni led individual taxpayers when Bihar and Jharkhand were counted together. The department did not reveal the exact amount paid. Officials linked parts of the revenue to mining and related business activity. They also said the two states remained important for direct tax receipts.

Income Tax collection in Bihar and Jharkhand: PAN base and return filing

Rao said Bihar and Jharkhand had around 5.5 crore PAN card holders. Rao added that only 40 lakh people filed income tax returns. Officials said the gap showed the need for more guidance for taxpayers. They planned steps to help more people understand filing rules.

Income Tax collection in Bihar and Jharkhand: New Income Tax Act, 2025 rollout

Rao earlier met Income Tax officers to discuss the new Income Tax Act, 2025. The law comes into force from April 1. It replaces the six-decade-old Income Tax Act, 1961. More than 100 officers from both states attended the session, officials said.

Rao said, \"The new Act marks a shift towards greater clarity and ease of compliance through simple language, a streamlined structure and a reader-friendly presentation, without altering the underlying tax policy,\" Rao said. Officials said outreach programmes would follow for bankers, PSUs and others.

Officials said awareness drives in Bihar and Jharkhand would explain key parts of the new law. They said these programmes would cover compliance steps and practical filing issues. The department said it would also engage large employers and public bodies. Rao said the aim was better understanding and smoother tax processes.

With inputs from PTI