Sitharaman Champions Simpler, Taxpayer‑Friendly Compliance
Finance Minister Nirmala Sitharaman has urged a transformation of India’s tax framework into one that is more taxpayer‑friendly, transparent, and efficient. Speaking to officials from both the direct and indirect tax departments in New Delhi on June 24, 2025, she underscored the importance of fostering a compliance environment based on trust rather than enforcement.
Tax Compliance
She emphasized the need to simplify processes, eliminate red tape, and provide greater clarity in tax regulations. Recent reforms—including faceless assessments, e-verification, and digital tracking—have laid a strong foundation. Nonetheless, Sitharaman called for continuous improvements, streamlined procedures, and widespread taxpayer education following the enactment of the new Income Tax Bill.
Refund Speed & Dispute Resolution
Highlighting a significant boost in efficiency, the Finance Minister pointed out the sharp increase in tax refunds—surpassing ₹86,000 crore during FY26, a rise of 58%. She directed officials to accelerate refund processing times and resolve pending appeals swiftly, targeting over ₹10 lakh crore in disputed cases through faceless appellate mechanisms.
Withdraw Minor Appeals
To unclog the legal system, Sitharaman instructed tax authorities to withdraw departmental appeals below new thresholds—₹60 lakh at the ITAT level, ₹2 crore in High Court, and ₹5 crore in the Supreme Court—within three months. This measure aims to alleviate frivolous litigation and ease taxpayer burden.
Grievance Redressal
Emphasizing citizen-centric service, she urged tax departments to proactively address grievances submitted via platforms like CPGRAMS and e-Nivaran. Over 82% of grievances in FY26 have already been resolved, but Sitharaman called for sustained efforts to improve response times and transparency.
