Finance minister Nirmala Sitharaman on Monday directed income tax (I-T) officers to accelerate the disposal of disputed tax demands, timely process tax refunds, and proactively resolve taxpayer grievances.

Chairing the Conclave of Principal Chief Commissioners of Income-tax (Pr.CCsIT) here, she said that all departmental appeals falling below the revised monetary thresholds as notified in recent policy changes should be identified and withdrawn within a period of three months.

Sitharaman also commended the Central Board of Direct Taxes (CBDT) for its work in drafting the new income tax Bill, which successfully embodies the Prime Minister’s vision of simplification and clarity in laws. She asked the department to be prepared to conduct nationwide awareness and capacity-building programmes once the Bill is duly passed by the Parliament.

She asked PrCCsIT to prioritise and accelerate the disposal of disputed tax demands that are currently pending before the faceless appellate authorities. This is aimed at reducing litigation backlog and ensuring timely resolution, thereby enhancing taxpayer trust in the system.

The minister took note of the grievance cases on CPGRAMS and e-Nivaran platforms. She directed the CBDT to expedite resolution by analysing the nature of grievances and devising strategies not only to resolve the existing pendency but also to address the challenges that are causing the grievances in the first place.

She also told the CBDT to significantly reduce pendency in grievance redressal mechanisms such as CPGRAMS and e-Nivaran pertaining to the department. She emphasised that prompt and time-bound disposal of taxpayer grievances is essential for ensuring responsive governance.

The minister urged the tax officers to ensure that compliance processes are made simpler, more transparent, and taxpayer-friendly. She highlighted the importance of a structured, process-driven approach to compliance, which, over time, would lead to both greater ease for taxpayers and improved voluntary compliance across the board.

Recognising that certain regions demonstrate superior compliance and service delivery, the FM encouraged the formulation of region-wise strategies to address local issues.

She also recommended that regions should adopt best practices from better-performing jurisdictions, ensuring consistency and improvement across all key performance areas.