Finance Minister Nirmala Sitharaman has urged the Income Tax Department to expedite tax refunds and actively address taxpayer grievances. She emphasized the need for tax officers to closely monitor these areas and adopt a taxpayer-focused approach to enhance service delivery and transparency. Speaking at the Principal Chief Commissioners of Income-tax (PrCCsIT) conclave in New Delhi on Monday, Sitharaman instructed officials to fast-track the resolution of disputed tax demands pending before faceless appellate authorities. The goal is to reduce litigation backlogs and build greater trust among taxpayers.

She also directed that departmental appeals below the revised monetary thresholds, as per recent policy updates, be identified and withdrawn within three months. The Finance Minister stressed simplifying and streamlining tax compliance processes to make them more transparent and user-friendly. She highlighted the need for a structured, process-oriented approach to compliance, which would lead to improved voluntary participation from taxpayers over time.

During the meeting, it was reported that tax refunds issued so far in FY26 have increased by 58% compared to the previous year—amounting to ₹23,376 crore from Order Giving Effects and ₹10,496 crore from rectifications. Additionally, out of 1,60,229 taxpayer grievances filed in FY26, 1,31,844 had been resolved by June 17, 2025—reflecting a disposal rate of 82.28%. The meeting was also attended by Revenue Secretary Arvind Shrivastava, CBDT Chairman Ravi Agarwal, other CBDT members, and senior officials.

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