Finance Minister Asks CBDT To Expedite Tax Appeal Disposals
CBDT urged to expedite pending tax appeals.
Finance Minister Nirmala Sitharaman has 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 tax officials on Friday, she said reducing the backlog of appeals should be one of the department’s highest priorities to improve tax administration and enhance taxpayer confidence.
Sitharaman observed that the pace of clearing pending appeals has remained slow and urged the CBDT to review its existing processes to ensure faster resolution of cases. She said timely disposal of appeals would not only reduce litigation but also provide greater certainty to taxpayers and improve the efficiency of the tax system.
The Finance Minister also stressed the importance of improving the overall taxpayer experience. She noted that many taxpayers are left with “a bitter taste” after interacting with the tax department and called on officials to exercise their authority with humility, fairness and professionalism. She reminded tax officers that taxpayers are partners in India’s economic growth and should be treated with respect.
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While addressing officials, Sitharaman cautioned against adopting either an excessively aggressive or overly lenient approach to tax administration. She said maintaining the right balance in implementing tax laws is essential to ensuring fairness, building trust and encouraging voluntary compliance among taxpayers.
In addition to reducing the appeals backlog, Sitharaman outlined several key priorities for the CBDT, including promoting voluntary tax compliance, simplifying tax procedures and strengthening certainty in the implementation of tax laws. She said these measures would help create a more transparent and predictable tax environment for individuals and businesses.
The Finance Minister emphasised that faster disposal of pending appeals, combined with taxpayer-friendly reforms, would contribute to reducing litigation and improving confidence in the tax administration. She urged the CBDT to continue modernising its processes while fostering a cooperative relationship with taxpayers to support India’s long-term economic growth.
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