FM Nirmala Sitharaman, presided over the 165th anniversary of Income Tax Day, observed by the Central Board of Direct Taxes (CBDT) in New Delhi. The event marked a significant milestone for the Indian tax administration, as the Finance Minister commended the Department for achieving its highest-ever tax collection.
During her address, Sitharaman lauded the success of the faceless assessment and appeals regime, which has streamlined tax processes and enhanced transparency. She emphasized the need for the Income Tax Department to maintain a fair and taxpayer-friendly approach, ensuring that tax notices are temperate, simple, and easy to comprehend. "The taxpayer experience should be improved," she urged, calling for a balanced use of authority to foster compliance without creating fear among taxpayers.
The Finance Minister also highlighted the importance of issuing refunds promptly and adhering to due process to encourage voluntary compliance. She underscored the need for capacity building within the Department, particularly in adopting global best practices in tax administration.
In her speech, Sitharaman acknowledged the growing trust of taxpayers in the Income Tax Department, noting that 58.57 lakh individuals filed their income tax returns for the first time in Assessment Year 2024-25. She praised these honest taxpayers for their contributions to the nation's welfare and development, stating that the increase in first-time filers indicates India's progression towards a more formalized economy, with more citizens voluntarily paying taxes.
The event was a testament to the continued efforts of the Income Tax Department to enhance its operations and foster a culture of voluntary compliance, ensuring that India's tax administration remains robust and taxpayer-centric.
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