Presentations were made on the overall performance of CBDT including Taxpayer Service (Grievance, Order Giving Effect & Rectification), Revenue Collection and Demand Management, Litigation Management & Assessments and other department matters (Vigilance and Systems Projects)

Union Finance minister reiterated the need for timely processing of tax refunds and proactive resolution of taxpayer grievances

Smt. Sitharaman emphasises on improved grievance redressal through targeted interventions

 

Union Minister for Finance and Corporate Affairs Smt. Nirmala Sitharaman chaired the Conclave of Principal Chief Commissioners of Income-tax (Pr.CCsIT) in New Delhi.

The meeting was also attended by Shri Arvind Shrivastava, Secretary, Department of Revenue; Shri Ravi Agarwal, Chairman CBDT; Members of CBDT and senior officers of CBDT.

The  Finance Minister was apprised about the following key performance indicators:

Taxpayer Service (grievance redressal & refunds):

• Out of the total 160,229 grievances (CPGRAMS & E-nivaran) for FY 2025-26, 1,31,844 grievances were resolved (up to 17.06.2025), leading to 82.28% disposal.  
• Refunds issued for F.Y 2025-26 as on 19.06.2025 as compared to F.Y 2024-25 saw 58.04% growth, showing better Taxpayer services
• Rs 23,376 Cr refunds issued on account of Order Giving Effects and Rs 10,496 CR refunds issued on rectification in F.Y 2025-26.

Litigation Management:

• Out of the pending 5.77 lakh appeals, over 2.25 lakh appeals are targeted for completion in FY 2025-26, addressing over ₹10 lakh crore of disputed demand.
• Around 4605 cases were withdrawn after the monetary limits were raised in 2024, and in around 3120 cases, appeals were not filed as the monetary limits for filing appeals were increased.

Smt. 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 Union Finance Minister directed all Principal Chief Commissioners of Income Tax (PrCCsIT) 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.

The Union Finance Minister 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 ₹50 lakh to ₹60 lakh.
• For High Courts: Increased from ₹1 crore to ₹2 crore.
• For Supreme Court: Increased from ₹2 crore to ₹5 crore.

During the conclave, Smt. 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.

The Union Finance Minister took note of the grievance cases on CPGRAMS and e-Nivaran platforms. She directed the CBDT to expedite resolution by analysing the nature of grievances and devising strategies not only to resolve the existing pendency but also to address the challenges that are causing the grievances in the first place.

Smt. 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.

Smt. Sitharaman emphasised the importance of the CPGRAMS platform as a key tool for taxpayer engagement and grievance redressal. She directed that regional performance in handling CPGRAMS cases be closely monitored, and corrective measures be initiated where necessary to ensure uniform service standards across the country.

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.

A comparative performance study of various regions was suggested by the FM, focusing on indicators such as:

•    Grievances disposed of
•    Orders Giving Effect (OGE) issued
•    Rectifications completed
•    Condonation cases under Section 119 processed

The Union Finance Minister advised that this analysis should help identify factors hindering performance, and guide efforts to streamline operations.

Recognising that certain regions demonstrate superior compliance and service delivery, Smt. Sitharaman encouraged the formulation of region-wise strategies for addressing local issues. She further recommended that regions should adopt best practices from better-performing jurisdictions, ensuring consistency and improvement across all key performance areas.

The Union Finance Minister commended the Central Board of Direct Taxes (CBDT) for its work in drafting the new Income Tax Bill, which successfully embodies the Hon’ble Prime Minister’s vision of simplification and clarity in laws. She asked the Department to be prepared to conduct nationwide awareness and capacity-building programmes once the Bill is duly passed by the Parliament.

Taxpayer grievance redressal must be expedited and departmental appeals below revised thresholds withdrawn to reduce litigation backlog. The Finance Minister directed the CBDT and Principal Chief Commissioners to prioritise timely grievance redressal and refund processing, to withdraw departmental appeals below revised monetary thresholds within three months, and to accelerate completion of pending appeals before faceless appellate authorities. She required region-wise performance analysis of grievance disposal, Orders Giving Effect, and rectifications, closer monitoring of CPGRAMS and e-Nivaran with time-bound disposal, adoption of best practices across regions, simplification of compliance processes, and preparedness for awareness and capacity-building upon passage of the new Income Tax Bill.