<h1>Government Proposes Changes to Reduce Tax Litigation: Advance Rulings, Settlement Expansion, Transfer Pricing Clarity.</h1> The government has proposed legislative and administrative changes to reduce litigation in direct taxes. The Union Finance Minister announced that resident taxpayers can now seek advance rulings on income tax liabilities above a certain threshold and plans to strengthen the authority for advance rulings with additional benches. The Income Tax Settlement Commission's scope will be expanded to allow more taxpayers to settle disputes. A high-level committee will be established to engage with trade and industry for clarity in tax laws. Changes in transfer pricing regulations are also proposed, aiming to boost taxpayer confidence and provide clarity in tax laws.