NEW DELHI: Finance minister Nirmala Sitharaman on Monday asked top direct tax officials to make the processes simpler, transparent, and taxpayer-friendly, while seeking to speed up cases of disputed tax demand.During a meeting with principal chief commissioners of income tax, the minister called for a “structured, process-driven approach to compliance” focusing on greater ease for taxpayers and improved voluntary compliance, an official statement said.A key thrust of FM’s discussions, which sets the agenda for the financial year, was a focus on refunds and grievance redressal, in addition to the disposal of cases locked up in disputes. While direct tax refunds in the fiscal year up to June 19 shot up 58%, the statement said Rs 23,376 crore refunds were issued on account of “Order Giving Effects”, while another Rs 10,496 crore were on account of rectifications made during the financial year.While nearly 5.8 lakh appeals are pending, over 2.2 lakh appeals are sought to be completed by March, dealing with over Rs 10 lakh crore of disputed demand. Around 4,605 cases were withdrawn after the monetary limits were raised in 2024, and in around 3,120 cases, appeals were not filed as the monetary limits for filing appeals were increased as part of an exercise to reduce litigation.As part of the exercise, Sitharaman asked the officials to prioritise and accelerate the disposal of disputed tax demands that are currently pending before the faceless appellate authorities. She also suggested that all appeals by the tax department falling below the revised monetary thresholds should be identified and withdrawn within three months.
