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FM to review backlog of income tax disputes on Monday, to push for early resolution
New Delhi: Finance minister Nirmala Sitharaman will on Monday review the backlog of income tax disputes and explore ways of cutting down their pendency at a meeting with senior field officers, two persons informed about the development said, outlining efforts to make tax governance more efficient.
The minister will also lead discussions on how to speed up tax refunds further and improve services to the taxpayer while enhancing the tax system's accountability, said one of the persons quoted above.
Filed officers will also be asked to explain the average disposal time of grievances. The move is part of efforts to improve the ease of living and ease of doing business, which will complement the broader efforts at reforms and de-regulation.
Sitharaman's meeting with Principal Chief Commissioners and other senior officials of the Income Tax Department aims to improve litigation management. The minister will review age-wise pendency of appeals and push for faster disposal of legacy cases, the person said.
Issues related to tax refunds including those held up due to non-processing of tax returns under the automatic assessment process and cases where rectification of tax returns for issues like clerical error are impacted due to IT system-related problems will receive attention at the meeting, said the person.
Field officers are expected to present data to the minister on pending taxpayer requests and grievances, their average disposal time and unresolved grievances in the department's online system e-Nivaran.
The finance minister is likely to question the tax administration's zones with vigilance cases pending beyond permissible timelines and disciplinary matters pending for months, the person said.
The minister will examine the best practices adopted by select regions and reiterate the need for a 'taxpayer-centric, tech-enabled, and transparent ecosystem across the Income Tax department,' added the person.
Tax experts said the focus should be on setting up a robust framework to address the backlog of cases at the Commissioner of Income Tax (Appeals) level.
'Introducing specified time limits for disposal of appeals is long overdue, and this would ensure greater accountability within the department and reinforce certainty for taxpayers,' said Amit Maheshwari, tax partner at AKM Global, a tax and consulting firm.
'Additionally, the present requirement of a 20% pre-deposit in high-pitched assessments should be reconsidered to ease the financial stress on taxpayers. The refund mechanism needs more transparency, and the grievance redressal system must be made significantly more responsive and efficient,' added Maheshwari.
At a meeting in the capital with senior officials last week, Sitharaman reviewed the performance of the Central Board of Indirect Taxes and Customs (CBIC) and urged swift closure of investigations, speedier tax refunds, and easier goods and services tax (GST) registration, Mint reported on Friday.
The minister then asked the principal chief commissioners, chief commissioners, and director generals of CBIC to enhance performance, fill vacant posts, and enhance administrative efficiency.
Queries emailed to the finance ministry on Friday seeking comments for the story remained unanswered at the time of publishing.
