New Delhi: Union Finance Minister Nirmala Sitharaman on Friday directed the Central Board of Direct Taxes (CBDT) to accelerate the disposal of pending tax appeals, highlighting that more than Rs 5 lakh crore remains locked in unresolved litigation.
Addressing senior income tax officials, Sitharaman said the pace of reducing pending appeals was not satisfactory and stressed that clearing the backlog should remain one of the department’s top priorities.
Calls for faster disposal of appeals
The Finance Minister asked the CBDT to review the handling of pending appeal cases and ensure that disputes are resolved more quickly.
She noted that although efforts have been made to reduce the backlog, the progress has been slower than expected.
According to Sitharaman, faster disposal of appeals would reduce litigation, improve efficiency and unlock significant amounts tied up in unresolved tax cases.
Focus on taxpayer experience
Sitharaman also underlined the importance of improving the overall experience of taxpayers while dealing with the Income Tax Department.
She observed that many taxpayers are left with “a bitter taste in their mouth” after interacting with tax authorities and urged officials to address these concerns through a more citizen-friendly approach.
She reminded officials that taxpayers are partners in India’s economic growth and should be treated with respect and fairness.
Urges balanced use of authority
The Finance Minister advised tax officials to exercise the powers entrusted to them with humility and responsibility.
She cautioned against adopting either an excessively aggressive or an overly relaxed approach while enforcing tax laws.
According to her, maintaining a balanced approach would help strengthen public confidence in the tax administration while ensuring effective implementation of tax regulations.
Strengthening voluntary compliance
Sitharaman outlined the CBDT’s broader priorities, asking officials to:
- Speed up disposal of pending tax appeals.
- Encourage greater voluntary tax compliance.
- Simplify the taxpayer experience.
- Improve certainty in tax administration.
- Reduce tax-related litigation.
She said these measures would help build greater trust between taxpayers and the Income Tax Department while improving the overall efficiency of tax administration.
Government aims to reduce litigation
The Finance Minister said reducing pending appeals and ensuring timely resolution of disputes would contribute to a more transparent and predictable tax system.
She emphasised that improving taxpayer services, promoting voluntary compliance and reducing unnecessary litigation remain key objectives of the government’s tax administration reforms.
Conclusion
The Finance Minister’s direction to the CBDT reflects the government’s continued focus on reducing tax litigation, improving taxpayer services and enhancing trust in the tax administration. Faster disposal of pending appeals and a balanced approach to tax enforcement are expected to play an important role in achieving these goals.