Income Tax Dept set to roll out "PRUDENT" Framework for Tax Administration in 2025
The CBDT Chairman was Speaking at a Federation of Indian Chambers of Commerce and Industry (FICCI) event on Monday (February 3)
In his end-of-year address to the Income Tax Department, chairman Ravi Agrawal revealed that the Central Board of Direct Taxes (CBDT) is set to enhance its operations in 2025 by adopting a so-called 'PRUDENT' approach. He clarified that the PRUDENT approach, with all its seven elements, should continue to guide them as they navigate the complexities of their work. This, he said, would...
In his end-of-year address to the Income Tax Department, chairman Ravi Agrawal revealed that the Central Board of Direct Taxes (CBDT) is set to enhance its operations in 2025 by adopting a so-called 'PRUDENT' approach.
He clarified that the PRUDENT approach, with all its seven elements, should continue to guide them as they navigate the complexities of their work. This, he said, would ensure that they not only compete with themselves but also continually set new standards in public service. Agrawal emphasized the need to recognize their strengths, identify areas for improvement, and remain adaptable to meet the challenges of the ever-changing landscape.
Agrawal explained that the acronym PRUDENT stands for specific traits: 'P' for professionalism, 'R' for being responsible and responsive, 'U' for understanding transactions and businesses, 'D' for dedication and due diligence, 'E' for effective enforcement, 'N' for non-intrusive administration, and 'T' for technology-based tax administration. He noted that the past year had seen significant progress, with over 2.4 lakh grievances resolved, including 1.75 lakh through the E-nirvan platform.
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Looking forward to 2025, Agrawal called for a renewed commitment to collaborative efforts, timely grievance resolution, and leveraging technology to enhance taxpayer services. He expressed his vision for building a workplace that is both productive and fulfilling, while wishing all staff a successful and healthy New Year. Agrawal emphasized the use of technology to improve taxpayer services and compliance, noting that these efforts have strengthened trust in the tax system.
Agrawal urged the department to maintain its commitment to excellence by focusing on collaborative efforts, timely grievance resolution, and continuous improvement. He added that they have leveraged technology to encourage voluntary compliance, enhanced training programmes, improved taxpayer services, and refined their approach to investigations and disputes.
The chairman also mentioned that a comprehensive review of the Income Tax Act had been undertaken, with contributions from officers and stakeholders across the country.
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Finance Minister Nirmala Sitharaman is set to table the new Income Tax Bill in the Parliament soon.
Read More: FM confirms New Income Tax Act during Budget 2025 Speech, to be Presented Next Week
These efforts, he said, project the commitment of the board of direct taxes in addressing taxpayer concerns effectively and building trust in the taxation system.
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