New Delhi: Finance minister Nirmala Sitharaman on Thursday urged senior income tax officials to ensure that pending taxpayer appeals and grievances are disposed of and the litigation backlog is resolved in a timely manner.
Speaking at an event in the capital, marking the 166th Income Tax Day, Sitharaman told senior officials to continue focused work on the areas identified during a review meeting held in June.
These include expediting the disposal of disputed tax demands pending before faceless appellate authorities and timely resolving the litigation backlog. The minister urged the department to identify and withdraw departmental appeals falling below the revised monetary thresholds announced in the Union Budget 2024-25 within three months.
In the budget last year, Sitharaman had announced raising the monetary limits for filing appeals related to direct taxes, excise and service tax in the tax tribunals, high courts and the Supreme Court to ₹60 lakh, ₹2 crore and ₹5 crore, respectively.
“Ensure timely processing of tax refunds and proactive and timely resolution of taxpayer grievances. Analyze the grievances and devise strategies not only to resolve the existing pendency but also to address the challenges that are causing the grievances in the first place,” the minister told the officials.
Call to review performance
Sitharaman also urged the department to undertake region-wise performance reviews to help identify factors hindering performance and streamline operations through indicators such as grievance disposal, rectification completion and processing of condonation cases.
“CBDT must focus on strengthening the department’s overall technological capabilities to ensure more effective management of systems and IT-related issues. This is important for ensuring a seamless taxpayer experience, improving service delivery and minimising technical disruptions. Ensuring timely rollouts and consistent service quality is essential,” the minister said.
Sitharaman also told CBDT to ensure adequate support to the staff and officers in terms of better workspaces and residential accommodations. “I would emphasise that the CBDT and the Department of Revenue prioritise the swift development of family accommodations and improved workspaces.”
Sitharaman also explained that 60,000 man hours were needed in drafting the new Income Tax Bill, 2025. “I appreciate the CBDT for giving their best to reduce the number of words, simplify the language, made sure its not subject to too many interpretations and ensure that there are clear sections.”