Finance Minister Nirmala Sitharaman on Friday asked the Central Board of Direct Taxes (CBDT) to step up efforts to dispose of pending tax appeals, noting that more than Rs 5 lakh crore remains locked in unresolved cases.
Addressing senior tax officials, Sitharaman said the pace of reducing pending appeals remains slow and urged the department to accelerate disposals while continuing to bring down the overall backlog.
She called on the CBDT to review the handling of pending appeal cases and ensure that more cases are resolved in a timely manner. According to the Finance Minister, reducing the backlog of tax litigation should remain one of the department's key priorities.
Sitharaman also emphasised the need to improve the taxpayer experience, saying many taxpayers are left with "a bitter taste in their mouth" after interacting with the tax department.
"Only we can redress that," she said, urging tax officials to exercise the powers vested in them with humility and balance.
"Approach the power vested in you with a sense of humility. Taxpayers are partners in India's growth and development; give them that respect," the Finance Minister said.
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She cautioned officials against adopting either an overly aggressive or excessively relaxed approach while administering tax laws.
"Don't overdo it or be laid back, there has to be a balance," she said.
Sitharaman also outlined the department's broader priorities, asking officials to deepen voluntary tax compliance, continue simplifying the taxpayer experience and strengthen tax certainty at the implementation level.
She said these initiatives, along with faster disposal of pending appeals, should remain the CBDT's key focus areas as the government seeks to build greater trust between taxpayers and the tax administration while reducing litigation.
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