"CBDT should ensure timely and appropriate actions on all applications filed by taxpayers" Union FM Nirmala Sitharaman Reviews Periodic Review Meeting of CBDT

On 25th April 2023, the Union Finance Minister Nirmala Sitharaman chaired the periodic review meeting of the Central Board of Direct Taxes (CBDT). Apart from the Finance Minister, Revenue Secretary, CBDT Chairman and other members of CBDT attended the review meeting.

The CBDT Periodic Review Meeting is a meeting convened at regular intervals to examine the performance of the Income Tax Department. These meetings are held to ensure that the department is implementing direct tax regulations and fulfilling revenue targets in an effective and efficient manner.

The finance minister informed that the Personal Income Tax (PIT) to GDP ratio has continuously increased from 2.11 in fiscal year 2014-15 to 2.94 in fiscal year 2021-22. Furthermore, the minister highlighted that the CBDT should ensure that all applications filed by taxpayers are dealt with in an efficient and suitable manner.

The CBDT is part of the Ministry of Finance's Department of Revenue and is in charge of developing policies and procedures for direct taxes such as income tax and corporate tax. It also supervises the operation of the Income Tax Department and has the jurisdiction to issue rules and regulations governing its operation.

The following subjects were reviewed by the Finance Minister:

1. Efforts to broaden the tax base
2. Cases pending in disciplinary proceedings
3. Condonation of delay applications disposal and grant of exemptions under various sections of the Income Tax Act, 1961

Further, the minister reviewed the impact of implementation of following initiatives:

• In recent years, the reported information from Statements of Financial Transactions (SFT) such as Dividend and Interest; Securities; Mutual Funds; and GSTN has increased by 1118%. This has culminated in the addition of records for roughly three crore people.
• TDS codes, which jumped from 36 to 65 in the preceding eight years of operation, contributed to an upsurge in overall recorded transactions in FY 2021-22 to 144 crore, compared to 70 crore in FY 2015-16. As a result of these developments, the total number of distinctive deductees rose nearly fourfold from 4.8 crore in the budget year 2015-16 to 9.2 crore in the financial year 2021-22.

During the conference, officials make reports on the progress accomplished by their specific regions or units, cautioning obstacles confronted and advocating remedies.

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