FM Sitharaman has directed the CBDT to reduce grievance redressal pendency and accelerate tax refund processing. Emphasising taxpayer trust, she urged faster resolution of disputes and withdrawal of low-value appeals, aligning with recent policy reforms and improved digital service delivery in the income tax department.
In a decisive move aimed at strengthening taxpayer confidence and enhancing service delivery, Finance Minister Nirmala Sitharaman on Monday directed the Central Board of Direct Taxes (CBDT) to significantly cut down on the pendency of grievances under platforms such as CPGRAMS (Centralised Public Grievance Redress and Monitoring System) and e-Nivaran. She emphasised that a responsive and efficient grievance redressal system is key to building a transparent and citizen-friendly tax administration.
The directive was issued while Sitharaman was chairing the Conclave of Principal Chief Commissioners of Income Tax in New Delhi. During the meeting, she was apprised of the department’s performance indicators and ongoing initiatives to streamline operations and enhance taxpayer experience.
As of June 17, 2025, out of the total 1,60,229 grievances filed under CPGRAMS and e-Nivaran for the financial year 2025-26, a total of 1,31,844 had been resolved. This marks an impressive disposal rate of 82.28%, reflecting efforts already underway but highlighting the need for further improvement to clear the remaining backlog swiftly.
The minister also noted a significant growth in tax refunds, a critical aspect of taxpayer services. Refunds issued for FY 2025-26 (as of June 19) showed a remarkable 58.04% annual growth. Refunds amounting to ₹23,376 crore were issued as a result of Orders Giving Effect (OGE), and an additional ₹10,496 crore were refunded due to rectification processes. These figures indicate a marked improvement in the efficiency of tax administration and a more proactive approach to returning dues to taxpayers.
On the litigation front, Sitharaman urged the CBDT to accelerate the disposal of disputed tax demands pending before faceless appellate authorities. Of the 5.77 lakh appeals currently pending, over 2.25 lakh appeals—covering more than ₹10 lakh crore in disputed tax demands—are targeted for resolution in the current financial year.
The Finance Minister called for the identification and withdrawal of all departmental appeals that fall below the revised monetary thresholds, as per the Union Budget 2024-25 guidelines. As part of this policy change, the monetary thresholds for departmental appeals have been revised upwards: from ₹50 lakh to ₹60 lakh for 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. This revision is aimed at reducing unnecessary litigation and enabling quicker resolution of high-value tax disputes.
According to officials, around 4,605 cases were withdrawn following the revision in monetary limits in 2024, while in 3,120 cases, no appeals were filed due to the increased threshold. This proactive approach is expected to ease the burden on the judiciary and allow the department to focus on more significant and impactful cases.
The Finance Minister further acknowledged the CBDT’s efforts in implementing key structural reforms, including the adoption of faceless assessments, the e-verification system, digital tax services, revised exemption norms, and updates to income tax slab rates. These measures, she noted, are instrumental in moving towards a more transparent and taxpayer-friendly system.
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Sitharaman encouraged all Principal Chief Commissioners to consolidate these reforms and build on them to deliver tangible outcomes. A core focus remains on the timely processing of tax refunds, reducing litigation, and resolving grievances quickly—each of which contributes significantly to building public trust in the taxation system.
Her directives are expected to drive a renewed push toward administrative efficiency and taxpayer-centric governance in the CBDT. With over ₹10 lakh crore of tax disputes under appeal and lakhs of taxpayers awaiting resolutions and refunds, the Finance Ministry’s latest move underscores its commitment to ease of compliance, transparency, and trust-based taxation.
