Union Finance Minister Nirmala Sitharaman presided over the 167th Income Tax Day celebrations organized by the Central Board of Direct Taxes (CBDT) in New Delhi on July 24, 2026. The event marked a significant milestone in India's tax administration reforms, with the Minister outlining the 5Rs of Responsive Tax Governance: Recognise, Respond, Redress, Reflect, and Reform as guiding principles for taxpayer service.
Sitharaman emphasized that the Income Tax Department's role has evolved from mere tax collection to building a fair, efficient, transparent, and taxpayer-centric administration. She described the implementation of the Income-tax Act, 2025 as a landmark reform that has simplified the law, reduced compliance costs, and strengthened ease of doing business. The Minister highlighted enhanced capabilities of the e-Filing portal, improved return processing, prompt refunds, and significant progress in grievance redressal.
The Finance Minister called for a continued focus on reducing litigation by strengthening tax certainty through three pillars: clarity in taxpayer obligations through timely circulars, consistency of approach across the department, and comprehensive guidance on complex issues. She stressed that honest taxpayers should experience convenience, opportunities to correct bona fide errors, and a tax administration that exercises its authority with humility.
Sitharaman underlined the importance of strengthening institutional capacity through modern infrastructure, technology, and continuous investment in human capital. She called for greater capacity building in emerging areas including artificial intelligence, data analytics, forensic accounting, international taxation, transfer pricing, digital assets, cybersecurity, and leadership development.
Revenue Secretary Arvind Shrivastava described the implementation of the Income-tax Act, 2025 and the new Income-tax Rules and Forms as landmark reforms toward a simpler, clearer, and more taxpayer-friendly tax system. He appreciated the Department's efforts in strengthening taxpayer outreach, grievance redressal, litigation management, and technology-driven service delivery.
CBDT Chairman Ravi Agrawal outlined the Department's progress over the past year, highlighting sustained efforts toward reducing litigation, faster disposal of appeals, and enhancing tax certainty through Advance Pricing Agreements. He noted achievements in expeditious return processing, appeal-effect orders, refunds, and strengthening grievance redressal. The Department has expanded taxpayer outreach through initiatives such as PRARAMBH and Samvaad.
Technology initiatives highlighted include PAN 2.0, ITBA 2.0, IEC 3.0, Kar Saathi, and the SAKSHAM NUDGE framework designed to simplify compliance, improve taxpayer experience, and strengthen voluntary compliance.
The Union Finance Minister released six flagship publications: Avlokan (the inaugural Annual Report of the FT&TR Division highlighting India's growing leadership in international taxation), the Manual on Exchange of Information, the updated Guidance Note on FATCA & CRS, India's first comprehensive Guidance Note on Crypto Asset Reporting Obligations for Crypto-Asset Service Providers, the Annual Report of the APA Programme, and Re-engineering Tax Governance (tracing the Department's transformation from paper-based processes to an integrated, technology-driven digital ecosystem).
Four short films were screened showcasing the history of taxation, the Karmyogi Shiksha Path Portal, achievements of the Income-Tax Department in FY 2025-26, and the reimagining of taxpayer communication in the digital age.