Nirmala Sitharaman outlines 5Rs of responsive tax governance at Income Tax Day; stresses tax certainty and reduced litigation
Income Tax Day: Finance Minister Nirmala Sitharaman frames ‘5Rs of Responsive Tax Governance’ and links tax certainty with reduced litigation
- CBDT is the direct taxes board that organised the 167th Income Tax Day event cited in the PIB communication.
- The PIB communication states that the Income-tax Act, 2025 implementation aims to simplify tax law, reduce compliance costs and support ease of doing business.
- The PIB communication urges the Department to prevent recurring grievance causes through systemic improvements rather than only disposing grievances.
- The PIB communication explicitly links tax certainty with continued efforts to reduce litigation.
What happened at Income Tax Day (CBDT event in New Delhi)?
Union Finance Minister Nirmala Sitharaman participated in the 167th Income Tax Day celebrations organised by the Central Board of Direct Taxes (CBDT) in New Delhi. She said the Income Tax Department’s role has evolved from tax collection to building a fair, efficient, transparent and taxpayer-centric tax administration.
Sitharaman highlighted the implementation of the Income-tax Act, 2025 as a reform aimed at simplifying the law, reducing compliance costs, and strengthening ease of doing business. She also underlined improvements to the e-Filing portal, return processing, prompt refunds, and grievance redressal, with an additional emphasis on moving from mere disposal of grievances to identifying recurring issues and preventing them through systemic improvements.
UPSC can frame tax administration reforms as a governance question: how taxpayer-centric processes, tax certainty and systemic grievance analysis reduce avoidable disputes while ensuring administrative fairness and institutional capacity building.
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