Sitharaman Urges I-T Officers to Raise Benchmark, Earn Taxpayer Trust

New Delhi, Jul 24 (PTI) Finance Minister Nirmala Sitharaman on Monday asked income tax officers to raise their benchmark in the timely execution of policies and earn taxpayer trust.

Speaking at the 166th Income Tax Day event, Sitharaman strongly advocated for faster issuance of OGEs (Order Giving Effect) and said such delays are unpardonable from the Central Board of Direct Taxes (CBDT) which could draft the new income tax bill within just 3 months.

OGE -- or order giving effect -- refers to an order that an I-T officer has to pass when a taxpayer wins a case against the department in an appeal against assessment.

"Good policies alone are not enough, what matters actually is timely execution... I think all these years you (tax officer) have done your maximum best. Now is the time to raise the benchmark," she said at the 166th Income Tax Day event here.

At the event, Sitharaman lauded income tax (I-T) officers for their nimbleness in adapting to newer technologies and drafting the new income tax bill. She also gave away awards to the officers involved in drafting the bill and also those who looked into the legal aspects.

"I've seen you do spectacular work in reducing the number of words in the 1961 Income Tax Act to half its size, but you're not able to issue OGEs in time. Just unbelievable. Set yourself some kind of a record, set yourself some kind of a protocol. Just don't delay on the issue of OGE," she said.

Sitharaman highlighted 5 areas for the tax department to focus on. These include faster disposal of disputed tax demands pending before faceless appellate authorities. And also withdrawal of departmental appeals falling below the revised monetary thresholds announced in the Union Budget 2024-25 within 3 months.

She also asked the tax department to ensure the timely processing of tax refunds and the proactive and timely resolution of taxpayer grievances.

She said income tax day is the moment to reaffirm the unsaid social contract between the state and the taxpayer.

"We cannot afford that unsaid social contract between the state and the taxpayer to become loose or diluted," Sitharaman said.

Sitharaman said 60,000 man-hours were spent in drafting the new Income Tax bill, which when enacted, will make income tax law simpler.

"Since 1961, it (I-T Act) has not been touched; layers and layers got added to it. A comprehensive review had not happened. So, that work which was taken up required that many number of hours," Sitharaman said.

Asking the income tax department to focus on strengthening the overall Technological capabilities, she said this will ensure seamless taxpayer experience, and improve service delivery.

"Ensuring timely rollouts and consistent service quality is essential. Even well-intentioned reforms risk eroding taxpayer trust and undermining the credibility of the broader reform agenda," Sitharaman said.

"You're capable of being even better. Let's earn the trust of the taxpayers through our conduct," she added.