CBDT Chairman: Budget Measures to Ease Compliance, Reduce Tax Litigation

• CBDT Chairman Ravi Agrawal stated that the Union Budget includes significant proposals aimed at reducing litigation and enhancing ease of living for taxpayers.
• Assessment and penalty proceedings have been integrated into a single process, expected to halve the time and resources taxpayers spend.
• The department has disposed of 1.5 lakh appeals this year till January 31, a 40% increase compared to 1.08 lakh last year, reducing pending appeals from 5.4 lakh to 4.9 lakh.
• The new Income Tax Act 2025, effective April 1, 2026, simplifies language and reduces length by half to improve clarity and compliance.
• Measures like decriminalisation of certain provisions, simplified Form 15G/15H submission, and rationalised TCS rates aim to benefit taxpayers and increase liquidity.