New Delhi, May 3 -- After forgoing Rs.1 trillion in revenue to provide relief to the middle class in this year's budget, the government has set tax collection targets for key regions to meet its Rs.25.2 trillion direct tax goal for FY26, while urging its officers to follow a trust-based approach, said two persons informed about the development.

The Central Board of Direct Taxes (CBDT) has prepared and circulated its annual strategy for the new financial year to field officers this week, said one of the two persons quoted above, speaking on the condition of anonymity.

It has laid down targets for not only tax collection from different regions, led by Mumbai and Delhi, but has also set regional targets to trim arrears and demands from Rs....