India's tax landscape is poised to enter its next phase of reform with a strong focus on achieving "multilateral certainties", said Raman Chopra, Principal Commissioner of Income Tax, while speaking at the International Tax Summit in New Delhi.
Chopra highlighted that India's recent tax reforms have not only strengthened investor confidence but also reduced uncertainty, positioning the country as a predictable and attractive tax jurisdiction.
"Multilateral certainties are required, and we are working on them as a continuous process. Once the decision is taken and when it has to come, it will certainly come forward," Chopra stated, referring to the multilateral tax certainty framework under international discussions.
India's Commitment to Global Tax Certainty
Chopra reiterated India's active participation in ongoing OECD discussions on Pillars 1 and 2, noting the global focus on Base Erosion and Profit Shifting (BEPS) and the challenges of taxing the digital economy. He also acknowledged the US reservations over the Undertaxed Profits Rule (UTPR) while emphasizing that India remains committed to balanced solutions ensuring both tax certainty and simplicity.
"Our domestic legislation has done everything possible to remove uncertainty, resolve taxpayers' problems, and improve infrastructure. Many provisions brought in the last five years have strengthened confidence and improved certainty," he said, noting that India's tax administration now prioritizes simplified compliance and non-intrusive monitoring.
Domestic Reforms Driving Confidence and Compliance
Calling the February Budget 2025 a "landmark", Chopra said it provided unprecedented relief to taxpayers, particularly the middle class.
"Such a huge relief to common taxpayers has never been given in any budget. Once we have taken the exemption limit to Rs 12 lakh, it's a huge amount of money and that's going to fuel the economy," he remarked.
He further noted that the full benefits of these measures would become more visible over the next two years, especially after the next Pay Commission recommendations are implemented.
On rising income tax collections, Chopra credited data-driven compliance mechanisms and third-party information sharing, saying these have significantly broadened the taxpayer base.
"Through third-party information collection, we have identified new areas, and that information is being shared with taxpayers. It's a non-intrusive and voluntary compliance mechanism given by the government. Everybody is beginning to pay the tax, and it has deepened the base," he explained.
Focus on Transfer Pricing and Safe Harbour Certainty
Chopra also shed light on India's evolving transfer pricing regime, the growing number of Advance Pricing Agreements (APAs), and the government's ongoing efforts to expand safe harbour provisions-especially for sectors seeking certainty and reduced litigation.
He emphasized that policymaking will continue to be taxpayer-centric, ensuring that stakeholder suggestions are taken seriously.
"Any proposal that goes forward now will be consumer-centric and beneficial, it will definitely be considered," Chopra said.
Conclusion
As India moves toward greater global tax integration, its focus on certainty, simplification and fairness continues to drive investor confidence. The government's data-driven, technology-enabled, and consultative approach underscores a broader vision-building a modern, transparent, and globally aligned tax ecosystem that supports both economic growth and taxpayer trust.
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