CBDT should take prompt and appropriate action on all applications filed by taxpayers: Union Finance Minister

Union Finance Minister Nirmala Sitharaman presided over the Central Board of Direct Taxes (CBDT) quarterly review meeting on April 25, 2023. The review meeting was attended by the Finance Minister, Revenue Secretary, CBDT Chairman, and other CBDT members.

The CBDT Periodic Review gathering is a regular gathering held to review the performance of the Income Tax Department. These meetings are designed to ensure that the department is effectively and efficiently applying direct tax regulations and meeting revenue targets.

According to the finance minister, the Personal Income Tax (PIT) to GDP ratio has steadily climbed from 2.11 in financial year 2014-15 to 2.94 in financial year 2021-22. Furthermore, the minister stated that the CBDT must ensure that all petitions made by taxpayers are handled in an efficient and appropriate manner.

The CBDT is part of the Ministry of Finance’s Department of Revenue and is responsible for creating direct tax policies and procedures such as income tax and corporate tax. It is also in charge of supervising the operation of the Income Tax Department and has the authority to make rules and regulations controlling its operations.

Inter alia, the Finance Minister reviewed the following subjects:

• Efforts for increasing tax payer base
• Pending disciplinary proceeding cases
• Disposal of applications for condonation of delay and grant of exemptions under certain sections of the Income Tax Act, 1961.

During the review meeting, the Finance Minister was apprised about the impact of the following initiatives:

• Introduction of new data sources in Statement of Financial Transactions (SFT) like Dividend and Interest; Securities; Mutual Funds and information from GSTN in recent years has led to 1118% increase in reported information. This has resulted in addition of information of about 3 crore persons.
• Introduction of new TDS codes, which have almost doubled from 36 to 65 in last eight years, led to increase in total reported transaction in FY 2021-22 to 144 crore as compared to total reported transaction in FY 2015-16 of 70 crore. This has resulted in increase in number of unique deductees — almost doubled from 4.8 crore (in F.Y. 2015-16) to 9.2 crore (in F.Y. 2021-22).

Smt. Sitharaman was also apprised of the fact that the Personal Income Tax (PIT) to GDP ratio has been steadily increasing from 2.11 in F.Y. 2014-15 to 2.94 in F.Y. 2021-22.

The Finance Minister also reviewed the pending disciplinary proceeding cases against employees/officers and observed that administrative and procedural delays should be minimised. Smt. Sitharaman also directed CBDT to take prompt action in finalisation of such proceedings.

The Finance Minister emphasised that CBDT should ensure timely and appropriate actions on all applications filed by tax payers and desired a reasonable time frame for disposal of such applications. The Finance Minister exhorted CBDT to expand and strengthen its efforts to increase tax payers’ awareness regarding the provisions of the direct tax laws and compliance thereof.