Finance Minister calls for taxpayer-first reforms on 167th Income Tax Day

Sitharaman described the Income-tax Act, 2025 as one of the most significant reforms in recent years, saying it has simplified tax laws, reduced compliance costs and improved the ease of doing business.

The Income Tax Department marked its 167th Income Tax Day in New Delhi with a renewed focus on building a tax system that is simpler, more transparent and centred on the needs of taxpayers. Addressing the celebrations, Union Finance Minister Nirmala Sitharaman said the department's responsibility now stretches far beyond tax collection, placing equal importance on trust, technology, efficient services and voluntary compliance as India moves towards becoming a developed economy.

The event was attended by senior officials, including Revenue Secretary Arvind Shrivastava, CBDT Chairman Ravi Agrawal, CBIC Chairman Vivek Chaturvedi and members of both boards.

New tax law placed at the centre of reforms

Sitharaman described the Income-tax Act, 2025 as one of the most significant reforms in recent years, saying it has simplified tax laws, reduced compliance costs and improved the ease of doing business. She pointed to the stronger performance of the e-Filing portal, faster processing of income tax returns, quicker refunds and better grievance handling as examples of the department's progress.

She also said resolving taxpayer complaints should not stop at closing individual cases. Instead, the department should identify recurring issues and introduce systemic changes that prevent similar problems from arising again. She introduced the framework of the 5Rs of Responsive Tax Governance — Recognise, Respond, Redress, Reflect and Reform — as guiding principles for delivering better taxpayer services while treating honest taxpayers with fairness and respect.

Technology and skilled workforce to shape the future

The Finance Minister stressed that modern tax administration requires continuous investment in technology as well as people. She called for stronger institutional capacity by expanding expertise in areas such as artificial intelligence, data analytics, forensic accounting, cybersecurity, international taxation, transfer pricing and digital assets.

She encouraged the department to strengthen voluntary compliance, reduce litigation, improve tax certainty and continue using technology responsibly to make tax compliance easier. According to her, public confidence grows when taxpayers experience transparent processes, timely services and a fair approach to enforcement.

Revenue Secretary Arvind Shrivastava echoed these priorities, describing the Income-tax Act, 2025 and its accompanying rules as major steps towards creating a clearer and more taxpayer-friendly tax system. He also highlighted improvements in taxpayer outreach, grievance redressal, litigation management and digital service delivery.

Digital initiatives and taxpayer outreach highlighted

CBDT Chairman Ravi Agrawal reviewed the department's achievements over the past year, highlighting faster disposal of appeals, quicker refunds and stronger grievance resolution. He also pointed to initiatives such as Advance Pricing Agreements that are helping improve tax certainty for businesses.

Agrawal said technology remains central to the department's transformation, citing projects including PAN 2.0, ITBA 2.0, IEC 3.0, Kar Saathi and the SAKSHAM NUDGE framework, which are designed to simplify compliance and improve taxpayer services. He also noted that outreach programmes such as PRARAMBH and Samvaad have expanded engagement with taxpayers while encouraging voluntary compliance.

Six new publications released during the celebration

During the event, the Finance Minister released six flagship publications covering international taxation, exchange of information, FATCA and CRS guidance, crypto asset reporting obligations, the Advance Pricing Agreement programme and the department's digital transformation journey. Four short films showcasing the evolution of taxation, taxpayer communication, departmental achievements and digital learning initiatives were also screened before the programme concluded with a vote of thanks from CBDT Member G. Aparna Rao.