The Union Budget FY27 proposals are designed to translate the vision of a taxpayer-friendly system into practical and operational measures that empower businesses to manage their tax affairs independently and transparently, Revenue Secretary Arvind Shrivastava said on Monday.
Addressing the post-Budget session organised by Confederation of Indian Industry (CII), the secretary highlighted that in direct taxation, several key reforms have been introduced to enhance taxpayer control.
On the customs front, he said, the government is moving from transaction-based rules to entity-based systems.
“Accredited Economic Operators (AEOs) and eligible manufacturers will receive preferential treatment, such as electronic sealing of exports and simplified customs procedures. This approach is intended to reduce physical inspections and enhance efficiency while streamlining compliance for businesses”, he stated.
Timeline for revising income tax returns
As for the income tax, the timeline for revising income tax returns has been extended by quarter, allowing taxpayers time to correct errors voluntarily without intervention from the department.
Additionally, the system of updated returns, which has already seen widespread adoption, enables taxpayers to report new or missing information over a four-year period. “These measures ensure that taxpayers can proactively manage their liabilities, reduce disputes, and retain greater control over their assessments”, Shrivastava noted.
The secretary also said the importance of transparency and clear communication in implementing these reforms.
Secretary’s word of advice for taxpayers
He urged both the industry and taxpayers to avoid speculation around budget proposals, noting that “The government has ensured that proposals are drafted with clarity and the department is actively supplementing and clarifying measures wherever needed. Constructive engagement will ensure that the intent and spirit of these reforms is fully realized on the ground”.
Rajiv Memani, President, CII said that the taxation proposals in this Budget mark a decisive shift in how India is positioning itself in the global investment landscape. What stands out is that tax policy is no longer being viewed merely as a revenue instrument, but as a strategic lever to attract global business, integrate into global value chains, and anchor long-term investment in India.