Finance Minister Nirmala Sitharaman urged the Income Tax Department on Wednesday to simplify the tax process, improve taxpayer services, ensure certainty, and reduce litigation. Speaking at the department’s 165th anniversary, Sitharaman highlighted the importance of adopting a more taxpayer-friendly approach.
“We should genuinely strive for simpler ways of communicating with our taxpayers. Grievance redressal remains a significant issue,” Sitharaman stated.
She emphasized that taxpayer compliance is closely linked to the system’s ease and clarity. “Taxpayers are more likely to comply when they experience the ease, flexibility, and simplicity offered, as seen in the new tax regime,” she noted.
Sitharaman also called for a substantial simplification of the language used in tax notices and correspondence, stressing, “The language in tax notices and letters should not be overly technical or convoluted.”
She further emphasized that enforcement actions by the Income Tax Department should be a last resort and proportionate to the situation.
Reaffirming the government’s commitment to tax simplification, enhanced taxpayer services, tax certainty, and reduced litigation, Sitharaman announced, “Within six months, parts of the tax code or the Income Tax Act will be clearly written in simple, easy-to-understand language.”
She added that a committee within the Central Board of Direct Taxes (CBDT) is actively working on this initiative, in line with the prime minister’s vision of a seamless and faceless tax administration.
