New Delhi, Jan. 10 -- When presenting the Union budget last February, the government projected a 13% growth in direct tax collections for the current financial year, banking on the strong tax buoyancy seen in preceding years.

However, between April and mid-December of this year, collections have grown approximately 8%. The income tax department is confident of meeting the target for the year. But the moderation in the growth rate is impacting tax administration.

The department is now nudging taxpayers to be more honest about the deductions they claim and make accurate reporting. Undisclosed foreign income is also in focus. Mint examines how the tax administration is tightening compliance following the reduction in tax rates this fiscal ...