FM Urges I-T Officers To Speed Up Grievance Redressal, Timely Refunds

(MENAFN- Kashmir Observer) New Delhi- Finance Minister Nirmala Sitharaman on Monday asked tax officers to proactively resolve taxpayer grievances and emphasised on the need for timely processing of refunds.

Addressing the Conclave of Principal Chief Commissioners of Income-tax (PrCCs IT), the minister asked officials to prioritize 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.

Sitharaman emphasised the need for the timely processing of tax refunds and the proactive resolution of taxpayer grievances. PrCCsIT were asked to monitor these areas closely and adopt a taxpayer-centric approach to improve service delivery and transparency, an official statement said.

Refunds issued for FY 2025-26 as on June 19 grew 58.04 per cent year-on-year.

Sitharaman directed the CBDT to significantly reduce pendency in grievance redressal mechanisms such as CPGRAMS and e-Nivaran pertaining to the department.

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She emphasised that prompt and time-bound disposal of taxpayer grievances is essential for ensuring responsive governance, the statement added.

Out of the total 160,229 grievances (CPGRAMS & E-nivaran) for FY 2025-26, 1,31,844 grievances were resolved (up to June 17), leading to 82.28 per cent disposal.

“The Union Finance Minister urged the Principal Chief Commissioners (PrCCs) to ensure that tax 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,” the statement said.

The minister also instructed that all departmental appeals falling below the revised monetary thresholds be identified and withdrawn within a period of three months.

The government has increased the monetary thresholds for filing tax dispute appeals by the department. The limit to file appeal before the Income Tax Appellate Tribunal (ITAT) increased from Rs 50 lakh to Rs 60 lakh. For High Courts, the limit was Increased from Rs 1 crore to Rs 2 crore. For the Supreme Court, the limit was hiked from Rs 2 crore to Rs 5 crore.

Out of the pending 5.77 lakh appeals, over 2.25 lakh appeals are targeted for completion in FY 2025-26, addressing over Rs 10 lakh crore of disputed demand. Around 4,605 cases were withdrawn after the monetary limits were raised in 2024, and in around 3,120 cases, appeals were not filed as the monetary limits for filing appeals were increased.

Sitharaman noted that the Central Board of Direct Taxes (CBDT) has undertaken several significant reforms in recent years, particularly in faceless assessment, e-verification system, tax exemptions & changes in slab rates, and digital service delivery. She called for further consolidation of these reforms to deliver tangible benefits to taxpayers.

The conclave was also attended by Revenue Secretary Arvind Shrivastava, Central Board of Direct Taxes Chairman Ravi Agarwal, and members and senior officers of CBDT.

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