Reforms in direct taxes ensure taxpayers can manage liabilities, reduce disputes: Revenue Secretary

While speaking at a post-Budget interactive session organised by the Confederation of Indian Industry (CII), the Secretary highlighted key reforms in direct taxation, and noted that the timeline for revising income tax returns has been extended by one quarter, giving taxpayers additional time to voluntarily correct errors.

He also pointed to the growing use of updated returns, which allow taxpayers to disclose new or missing information over a four-year period.

"These measures ensure that taxpayers can proactively manage their liabilities, reduce disputes, and retain greater control over their assessments," he said.

He said the Union Budget 2026-27 aims to strengthen a taxpayer-friendly, trust-based system by translating policy vision into practical and transparent measures.

"The Budget proposals are designed to empower businesses and taxpayers to manage their tax affairs independently while reducing disputes and administrative intervention," he said.

On the customs, Shrivastava said the government is shifting from transaction-based rules to entity-based systems.

"Under this approach, Accredited Economic Operators (AEOs) and eligible manufacturers will receive preferential treatment, including electronic sealing of exports and simplified customs procedures. The move is expected to reduce physical inspections, improve efficiency, and streamline compliance for businesses," he said.

Emphasising transparency and clear communication, the Secretary urged industry and taxpayers to avoid speculation around Budget proposals.

"The government has ensured that proposals are drafted with clarity, and the department is actively supplementing and clarifying measures wherever needed. Constructive engagement will ensure that the intent and spirit of these reforms is fully realised on the ground," he said. (ANI)