FM Chairs PrCCsIT Conclave; Sets New Benchmarks for Taxpayer Service

The Finance Minister was briefed on the department's key performance indicators for the current financial year (FY 2025-26), particularly in the area of taxpayer service.

Union Minister for Finance and Corporate Affairs, Smt. Nirmala Sitharaman, chaired a high-level Conclave of Principal Chief Commissioners of Income Tax (PrCCsIT) in New Delhi today. The conclave focused on performance assessment, grievance redressal, litigation management, and the future roadmap of the Income Tax Department under the Central Board of Direct Taxes (CBDT).

The event saw participation from Shri Arvind Shrivastava, Secretary, Department of Revenue; Shri Ravi Agarwal, Chairman, CBDT; Members of CBDT; and senior officers across the CBDT structure.

Grievance Redressal and Refunds: A Clear Mandate for Improvement

The Finance Minister was briefed on the department's key performance indicators for the current financial year (FY 2025-26), particularly in the area of taxpayer service. As of June 17, 2025, of the 1,60,229 total taxpayer grievances received via CPGRAMS and e-Nivaran platforms, 1,31,844 were resolved—reflecting an 82.28% disposal rate. This marked a notable improvement in taxpayer interface and grievance redressal, showcasing the department’s responsiveness.

Further, the refund mechanism has witnessed significant enhancement. Refunds issued up to June 19, 2025, reflect a 58.04% growth compared to the same period last year. In FY 2025-26, ₹23,376 crore worth of refunds were issued through Orders Giving Effect (OGE), while ₹10,496 crore were processed under rectification orders. These figures underscore the growing efficiency of digital tax administration.

Litigation Management: Fast-Tracking Appeal Disposals

With a massive backlog of 5.77 lakh appeals, the department has set an ambitious target to resolve over 2.25 lakh appeals in FY 2025-26. These pending cases cumulatively involve more than ₹10 lakh crore in disputed tax demands. The FM stressed the urgent need to expedite appeal disposal, particularly under the faceless appellate authority mechanism, as a means to reduce litigation, bolster taxpayer trust, and declutter judicial pipelines.

Highlighting the impact of revised monetary thresholds announced in Union Budget 2024-25, Smt. Sitharaman observed a visible shift in litigation trends:

• 4,605 appeals were withdrawn post-implementation of the new limits.

• 3,120 appeals were not filed, complying with the new thresholds:

  • ITAT: Raised from ₹50 lakh to ₹60 lakh.

  • High Court: Raised from ₹1 crore to ₹2 crore.

  • Supreme Court: Raised from ₹2 crore to ₹5 crore.

She instructed all PrCCsIT to ensure that appeals below the threshold are identified and withdrawn within three months—emphasizing legal discipline and alignment with the government's ease-of-doing-business agenda.

Performance Monitoring: Data-Driven Governance in Focus

During her address, Smt. Sitharaman called for enhanced focus on structured performance monitoring across regions. She proposed a comparative study of regional units based on indicators like:

• Volume of grievances resolved

• OGEs issued

• Rectifications completed

• Section 119 condonation cases processed

The objective is to identify operational bottlenecks and replicate the strategies of high-performing regions to ensure consistency nationwide. She encouraged region-wise diagnostics and strategic interventions based on local challenges.

CPGRAMS and E-Nivaran: Central to Public Engagement

Reaffirming the importance of CPGRAMS and e-Nivaran as primary interfaces for citizen engagement, the FM urged the CBDT to not only expedite grievance resolution but also assess root causes to prevent recurring issues. She emphasized the need for uniform service standards and tighter monitoring of regional performance, directing corrective actions where necessary.

"The efficacy of our grievance redressal is a direct reflection of governance quality. The goal must be timely, process-driven, and empathetic taxpayer engagement," she said.

Compliance and Simplicity: Toward a Modern Tax Culture

Smt. Sitharaman highlighted the importance of taxpayer-friendly compliance processes. She urged tax officers to build an environment of voluntary compliance through transparent, predictable, and simplified procedures. She reiterated that greater ease in tax administration ultimately leads to higher compliance and a more productive tax ecosystem.

The FM appreciated the progress made under CBDT’s reforms including:

• Faceless assessment

• E-verification mechanisms

• Slab rate adjustments

• Exemption simplification

• Expansion of digital service delivery

Income Tax Bill and Future Capacity Building

A key achievement highlighted during the conclave was the drafting of the new Income Tax Bill, which embodies the Hon’ble Prime Minister’s vision of simplification, clarity, and ease of compliance. The Finance Minister praised the CBDT for its role and directed preparations for nationwide awareness and training campaigns post the Bill’s passage in Parliament. These programmes are expected to orient both taxpayers and tax professionals to the proposed changes and enhance compliance readiness.

Concluding Vision: Consistency, Transparency, Trust

In her concluding remarks, Smt. Sitharaman reiterated that the Income Tax Department’s long-term success depends on its ability to deliver uniform, transparent, and accountable services. She urged every regional unit to take inspiration from the best-performing ones and set new benchmarks.

With her clear roadmap for strengthening grievance redressal, accelerating dispute resolution, promoting voluntary compliance, and modernizing tax laws, the FM’s address at the conclave laid the foundation for a more efficient and taxpayer-friendly Income Tax Department.