FM Sitharaman Directs Faster Taxpayer Grievance Redressal and Refund Processing
- Out of 1.6 lakh grievances filed in FY 2025-26, over 1.3 lakh have been addressed through CPGRAMS and e-Nivaran.
- Tax refunds grew by 58.04% year-on-year, with over Rs 33,800 crore disbursed through rectifications and order effects.
- Over 2.25 lakh appeals are set for resolution this fiscal, with a directive to withdraw all appeals below the revised monetary thresholds.
Finance Minister Nirmala Sitharaman instructed the Central Board of Direct Taxes (CBDT) to significantly reduce the backlog in grievance redressal systems, including CPGRAMS and e-Nivaran. Chairing the Conclave of Principal Chief Commissioners of Income Tax, Sitharaman stressed the importance of timely and efficient resolution of taxpayer complaints to ensure responsive and transparent governance.
The Finance Minister was briefed on the department’s performance indicators. Out of 1,60,229 total grievances for FY 2025-26, as many as 1,31,844 were resolved by June 17, registering a grievance disposal rate of 82.28%. Sitharaman emphasised that further efforts are needed to enhance this rate and strengthen taxpayer trust.
On the tax refund front, notable progress has been made. Refunds issued for FY 2025-26 saw a significant 58.04% annual growth as of June 19. This includes Rs 23,376 crore in refunds issued under Order Giving Effects and Rs 10,496 crore under rectifications. The Finance Minister called for timely processing of all refunds to improve taxpayer satisfaction.
During the conclave, Sitharaman directed the department to speed up the resolution of over 5.77 lakh pending appeals, of which 2.25 lakh appeals are targeted for disposal in FY 2025-26. These appeals involve disputed demands amounting to over Rs 10 lakh crore. She also highlighted that around 4,605 cases were withdrawn and 3,120 appeals were not filed due to recent increases in monetary limits for tax appeals.
In line with Union Budget 2024-25 announcements, the revised thresholds for departmental appeals are: Rs 60 lakh for the Income Tax Appellate Tribunal (up from Rs50 lakh), Rs 2 crore for High Courts (up from Rs 1 crore), and Rs 5 crore for the Supreme Court (up from rs 2 crore). The Minister instructed all Principal Chief Commissioners to identify and withdraw departmental appeals below these revised limits within three months.
Highlighting reforms in faceless assessments, e-verification, tax exemptions, and digital service delivery, Sitharaman called for consolidation of these changes to bring tangible benefits to taxpayers and reduce litigation.
