Latest news with #e-Nivaran
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Business Standard
9 hours ago
- Business
- Business Standard
'Trust restored': Officials to ask 'relevant' questions during tax scrutiny
The CBDT has asked its officers to ask 'relevant' and 'specific' questions while scrutinising tax assessments: a decision that experts say will reduce arbitrariness and harassment. Ravi Agrawal, chairman of Central Board of Direct Taxes, recently asked Principal Chief Commissioners of Income Tax (PCCITs) to supervise faceless assessing officers and ensure they avoid sending unjustified or vague queries to taxpayers, PTI reported. The directive applies to all scrutiny cases selected for review in FY26. Suresh Surana, a chartered accountant, said tax notices often seek information on personal expenditure, all bank statements, or explanation for travel or business operations even when these weren't relevant to a case. 'Such queries increased the compliance burden unnecessarily and caused stress to taxpayers,' he said. 'Even salaried taxpayers were asked to justify income already reported in Form 16 and reconciled with TDS data. Business owners were served blanket queries like 'justify business expenses' without context,' said Niyati Shah, chartered accountant and vertical head of personal tax at 1 Finance. Ashish Mehta, partner at Khaitan & Co, noted that even audited companies have often been asked to submit 'exhaustive details and past-year bank statements.' How does the CBDT directive help taxpayers? 'This is a step toward restoring trust,' said Shah. 'It forces assessing officers to apply their minds before raising a query and prevents blanket, template-based questioning.' Surana emphasized that it's especially helpful for senior citizens who rely on pensions or interest income. 'Focused scrutiny will spare them from excessive documentation or irrelevant questions,' he said. SR Patnaik, partner (Head – Taxation) at Cyril Amarchand Mangaldas, said the move will 'provide clarity by narrowing the scope of enquiry to specific transactions, making it easier for taxpayers to respond effectively.' Experts say taxpayer must do these things about queries they find irrelevant: -Respond politely, referencing relevant ITR sections or AIS data -Escalate the issue under the faceless assessment structure or through a grievance under e-Nivaran -Cite the CBDT directive to highlight non-compliance As a last resort, approach the Principal Commissioner or even consider a legal writ, said Patnaik 'It helps to get a tax professional involved if the queries remain repetitive or unjustified,' said Shah How will the faceless assessment system improve? The CBDT has placed the onus of quality control on assessment unit (AU) heads. 'This makes AU heads directly responsible for the relevance and clarity of queries,' said Shah. 'Over time, this should reduce 'fishing expeditions' by junior officers.' Mehta agreed, adding that the new responsibility 'should lead to fewer standardised notices and more case-specific scrutiny.' Patnaik, however, cautioned that implementation remains key: 'The faceless system is still evolving. Without a way to directly engage with officers, grievances can remain unaddressed unless structural reforms accompany these directives.' 'The faceless assessment system was meant to ensure transparency, but due to poor implementation, it has often led to genuine claims being rejected and even incorrect notices being issued,' said Rashi Khanna, associate partner at DMD Advocates. 'The department must ensure accountability of assessment units, incentivise reasoned orders, and create a feedback mechanism to improve trust and efficiency.' With enhanced oversight and accountability, the new framework aims to bring more fairness and professionalism to tax scrutiny, a welcome change for compliant taxpayers.
The Print
3 days ago
- Business
- The Print
Finance minister asks I-T officers to proactively resolve taxpayer grievances, issue refunds on time
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. 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. New Delhi, Jun 23 (PTI) Finance Minister Nirmala Sitharaman on Monday asked tax officers to proactively resolve taxpayer grievances and emphasised on the need for timely processing of refunds. 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. 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. PTI JD HVA This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
Hans India
3 days ago
- Business
- Hans India
FM directs CBDT to fast-track redressals
New Delhi: Finance Minister Nirmala Sitharaman on Monday directed the Central Board of Direct Taxes (CBDT) to significantly reduce pendency in grievance redressal mechanisms such as CPGRAMS and e-Nivaran pertaining to the department. She also emphasised that prompt and time-bound disposal of taxpayer grievances is essential for ensuring responsive governance. Chairing the Conclave of Principal Chief Commissioners of Income-tax here, the minister was apprised about key performance of the total 160,229 grievances (CPGRAMS and E-nivaran) for FY 2025-26, 1,31,844 grievances were resolved (up to 17.06.2025), leading to 82.28 per cent disposal. Refunds issued for FY 2025-26 (as on June 19) saw 58.04 per cent annual growth, showing better taxpayer services.
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Business Standard
5 days ago
- Business
- Business Standard
FM flags tax appeals backlog, tells CBDT to fast-track resolution
Finance Minister (FM) Nirmala Sitharaman on Monday directed the Income Tax department to accelerate the disposal of over 5,70,000 pending tax appeals and enhance taxpayer service delivery. Chairing a conclave of Principal Chief Commissioners of Income Tax (PrCCsIT), the FM emphasised the need to reduce litigation and improve trust in the tax administration system, according to an official statement. The Finance Minister called for time-bound disposal of disputed tax demands pending before faceless appellate authorities and instructed that all departmental appeals falling below the revised monetary thresholds be withdrawn within three months. According to the Union Budget 2024-25 announcements, the monetary limits for departmental appeals were increased from ₹50 lakh to ₹60 lakh for the Income Tax Appellate Tribunal (ITAT), from ₹1 crore to ₹2 crore for High Courts, and from ₹2 crore to ₹5 crore for the Supreme Court. Central Board of Direct Taxes (CBDT) officials informed that following this change, 4,605 cases were withdrawn in 2024, and another 3,120 were not filed due to the enhanced thresholds. In FY 2025-26, the department aims to dispose of more than 2,25,000 appeals, involving tax demands exceeding ₹10 trillion. On the taxpayer services front, the Finance Minister reviewed the status of grievance redressal and refund issuance. According to the release, 1,31,844 grievances out of 1,60,229 received through CPGRAMS and e-Nivaran platforms were resolved as of June 17, reflecting a disposal rate of 82.28 per cent. Refunds worth ₹23,376 crore were issued based on Orders Giving Effect, and ₹10,496 crore through rectification in FY 2025-26 so far. This marks a 58.04 per cent increase compared to the same period last year, said the release.
Hans India
5 days ago
- Business
- Hans India
FM Sitharaman directs CBDT to cut pendency in grievance redressal mechanisms
New Delhi: Finance Minister Nirmala Sitharaman on Monday directed the Central Board of Direct Taxes (CBDT) to significantly reduce pendency in grievance redressal mechanisms such as CPGRAMS and e-Nivaran pertaining to the department. She also emphasised that prompt and time-bound disposal of taxpayer grievances is essential for ensuring responsive governance. Chairing the Conclave of Principal Chief Commissioners of Income-tax here, the minister was apprised about key performance indicators. Out of the total 160,229 grievances (CPGRAMS and E-nivaran) for FY 2025-26, 1,31,844 grievances were resolved (up to 17.06.2025), leading to 82.28 per cent disposal. Refunds issued for FY 2025-26 (as on June 19) saw 58.04 per cent annual growth, showing better taxpayer services Rs 23,376 crore refunds issued on account of Order Giving Effects and Rs 10,496 crore refunds issued on rectification in FY2025-26. 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, the minister was informed during the meeting. 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 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 Finance Minister directed all Principal Chief Commissioners of Income Tax to prioritise 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. She instructed that all departmental appeals falling below the revised monetary thresholds as notified in recent policy changes be identified and withdrawn within a period of three months. As per the announcements in the Union Budget 2024-25, the monetary thresholds for filing tax dispute appeals by the department were enhanced as follows: For Income Tax Appellate Tribunal (ITAT): Increased from Rs 50 lakh to Rs 60 lakh; for High Courts: Increased from Rs 1 crore to Rs 2 crore; and for Supreme Court: Increased from Rs 2 crore to Rs 5 crore. During the conclave, Sitharaman emphasised the need for the timely processing of tax refunds and the proactive resolution of taxpayer grievances.
