Union Finance Minister Nirmala Sitharaman  Photo | ANI
Business

FM asks I-T dept not to take adversarial attitude towards taxpayers

Finance Minister Nirmala Sitharaman called for a shift in approach as the government rolls out the Income Tax Act, 2025, which seeks to reduce compliance burden, simplify the language and improve transparency

Pushpita Dey

Finance Minister Nirmala Sitharaman on Friday advised the tax officers to prioritise taxpayer convenience, stressing that making the taxpayer’s life easier must be the motto for all the officials in the tax department under the new framework.
During her address at the launch of Prarambh , a nationwide awareness campaign on the Income Tax Act, 2025, she said, “Making the Taxpayer's Life Easier” must be the motto. I want every officer to internalize this.” She further emphasized: “The taxpayer who interacts with your system is not your adversary. That taxpayer is your partner in nation-building,” underlining that tax revenues fund public goods such as schools, hospitals and infrastructure.

The minister called for a shift in approach as the government rolls out the Income Tax Act, 2025, which seeks to reduce compliance burden, simplify the language and improve transparency. She highlighted that the department must leverage the clarity of the new law to resolve pending disputes and avoid
unnecessary litigation.

“Every case that goes to tribunal or court is a failure of the system,” she said, urging officers to refrain from initiating frivolous proceedings. Commenting on the fear people have about dealing with tax officials, Sitharaman asked officials to respect taxpayers’ time and effort.  According to her, there should be a smooth and hassle-free system, where a taxpayer files returns, receives refunds promptly and does not need to engage further with the department. “That is the gold standard we should aspire to,” she said.

The minister also underscored that the new tax regime must be rooted in “moral and ethical principles”, replacing complexity with clarity. She stressed the need for accountable governance through transparent, rule-based oversight, signalling a broader push to build trust between taxpayers and authorities. She emphasized that the responsibility of the tax officials also include reaching out to the remotest corners of the country and ensure even small businesses and individual taxpayers from each districts and tehshil get to benefit from the new Act.

Her remarks came after the government notified the new Income Tax Rule on Friday with the aim to make the Income Tax Act 2025 effective from April 1. 

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