Finance Minister Nirmala Sitharaman, while chairing the Conclave of Principal Chief Commissioners of Income-tax in New Delhi today, highlighted reforms undertaken by the Central Board of Direct Taxes (CBDT) in recent years, particularly in faceless assessment, the e-verification system, tax exemptions & changes in slab rates, and directed all principal chief commissioners of income tax to prioritise and accelerate the disposal of disputed tax demands currently pending before the faceless appellate authorities. This is aimed at reducing litigation backlog and ensuring timely resolution, thereby enhancing taxpayer trust in the system.

She also instructed that all departmental appeals falling below the revised monetary thresholds, as notified in recent policy changes, be identified and withdrawn within three months.

The FM in her Union Budget speech this year had enhanced the monetary thresholds for filing tax dispute appeals by the department. The limits were increased:

For Income Tax Appellate Tribunal (ITAT): Increased from ₹50 lakh to ₹60 lakh.

For High Courts: Increased from ₹1 crore to ₹2 crore.

For Supreme Court: Increased from ₹2 crore to ₹5 crore.

Sitharaman emphasised the need for the timely processing of tax refunds and the proactive resolution of taxpayer grievances. She took note of the grievance cases on CPGRAMS and e-Nivaran platforms and directed the CBDT to expedite resolution by analysing the nature of grievances and devising strategies not only to resolve the existing pendency but also to address the challenges that are causing the grievances in the first place.

The FM directed the CBDT to reduce pendency in grievance redressal mechanisms such as CPGRAMS and e-Nivaran pertaining to the department. She also emphasised the importance of the CPGRAMS platform as a key tool for taxpayer engagement and grievance redressal, and directed that regional performance in handling CPGRAMS cases be closely monitored.

The FM urged the principal chief commissioners to ensure that tax compliance processes are made simpler, more transparent, and taxpayer-friendly. She was apprised about the key performance indicators:

Taxpayer Service (Grievance Redressal & Refunds):

Out of the total 160,229 grievances (CPGRAMS & E-nivaran) for FY26, 131,844 grievances were resolved, leading to 82.28% disposal.

Refunds issued for F.Y. 2025-26 as on 19.06.2025 saw 58.04% growth compared to F.Y. 2024-25.

Around ₹23,376 crore in refunds were issued on account of order-giving effects, and ₹10,496 crore in refunds were issued on rectification in F.Y. 2025-26.

Litigation Management: The ministry says that of the pending 5.77 lakh appeals, over 2.25 lakh appeals are targeted for completion in FY26, addressing over ₹10 lakh crore of disputed demand. Around 4605 cases were withdrawn after the monetary limits were raised in 2024, and in around 3120 cases, appeals were not filed as the monetary limits for filing appeals were increased.