Parliament Question: Ease of Tax Compliance

GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE LOK SABHA STARRED QUESTION NO. *211 TO BE ANSWERED ON MONDAY, 3 AUGUST, 2026/ 12 SHRAVANA, 1948 (SAKA) Ease of Tax Compliance +*211 SHRI BUNTY VIVEK SAHU SHRI KRISHNA PRASAD TENNETI Will the Minister of FINANCE be pleased to state: (a) whether the Income Tax Department has launched any campaign to help taxpayers transition from the Income-tax Act (Old Regime), 1961 to the Income-tax Act, 2025 (New Regime); (b) if so, the details thereof including the details of the campaigns, mode of dissemination and number of taxpayers reached including taxpayers and traders of Chhindwara in Madhya Pradesh; (c) the extent of relief received by local taxpayers due to the reduction in the burden of disputed litigation and tax demands as a result of the new monetary limits; (d) the total number of appeals and cases withdrawn/not filed or otherwise affected due to the revised monetary limits along with the reduction in the litigation burden locked up in disputes and the estimated reduction in tax demand, forum-wise and tax-wise; and (e) whether the Central Board of Direct Taxes (CBDT) has undertaken any measures to ease compliance for taxpayers and improve taxpayers services during the last 12 years, if so, the details thereof including key initiatives, their outcomes and the number of beneficiaries including in Chhindwara, Madhya Pradesh? ANSWER THE FINANCE MINISTER (SMT. NIRMALA SITHARAMAN) (a) to (e) A Statement is laid on the Table of the House. *****STATEMENT REFERRED TO IN REPLY TO LOK SABHA STARRED QUESTION NO. *211 FOR 03.08.2026 BY SHRI BUNTY VIVEK SAHU, MP AND SHRI KRISHNA PRASAD TENNETI, MP, REGARDING “EASE OF TAX COMPLIANCE”. (a) Yes. (b) The Income Tax Department launched PRARAMBH 2026 (Policy Reform and Responsible Action for Mission Viksit Bharat), a nationwide awareness campaign for the rollout of the Income-tax Act, 2025. The campaign included taxpayer workshops across the country, multilingual awareness material, FAQs, the publication KAR SETU – The Bridge between the Old and New Tax Act, an interactive quiz on the MyGov platform, print and outdoor publicity campaigns, and promotion of digital initiatives such as the Income Tax Website 2.0 and the AI-enabled chatbot KAR SAATHI. Further, details of the campaign are as under: (i) Educational and Awareness Material: Extensive multilingual educational material has been developed and disseminated. A series of brochures on newly introduced forms and procedures were prepared and published in English, Hindi and 10 regional languages. More than 1.75 lakh copies of brochures and publications have been distributed through field formations and Aaykar Seva Kendras (ASKs). (ii) Digital Outreach: Technology-enabled communication has been leveraged through QR-enabled brochures providing access to digital explanatory content and Samvaad video sessions. As noted above, the Department has also deployed the AI-enabled chatbot "Kar Saathi" to assist taxpayers in understanding the provisions of the new Act. (iii) A total of 304 physical outreach events under PRARAMBH 2026 were conducted in English, Hindi and Regional languages across the country. Approximately 50,000 taxpayers and stakeholders attended the physical outreach programmes conducted across the country. (iv) In the Madhya Pradesh & Chhattisgarh Region, a total of 31 physical outreach programmes were conducted as part of the campaign. These programmes reached approximately 2,500 taxpayers and stakeholders, facilitating direct interaction and dissemination of information among taxpayers, traders, and other stakeholders across the region. (v) Further, with reference to Chhindwara, Madhya Pradesh, physical outreach programme was conducted on 24.07.2026 as part of the campaign. A total of approximately 100 taxpayers and stakeholders participated.(c) The Government enhanced monetary limits for filing departmental appeals vide CBDT Circular No. 9/2024 dated 17.09.2024. In Chhindwara in Madhya Pradesh, two (2) cases were withdrawn in ITAT with total disputed tax demand of Rs. 55 lakhs on account of issuance of the Circular. (d) The total number of cases withdrawn/not filed due to monetary limits, as revised vide Circular no. 9/2024 dated 17.09.2024 are given below: Sr. Forum Number of cases No. of appeals not filed Total estimated No. withdrawn on on account of increase reduction in account of issuance in monetary threshold disputed tax of Circular No. after issuance of demand (In 9/2024 Circular No. 9/2024 crores) 1. ITAT 443 11,390 3662.82 2. High Court 4791 5,565 9,218.71 3. Supreme Court 744 534 3,807.15 (e) (i) Yes. CBDT has taken a number of measures over last 12 years to ease tax compliance and improve taxpayer services. These measures are uniformly applicable across the country, including in Chhindwara district of Madhya Pradesh. (ii) Some of the key initiatives taken during the last 12 years include introduction of pre- filled ITRs; new Form 26AS; facility to file updated return; introduction of Faceless Assessment and Faceless Appeal Schemes; electronic issuance of certificate for deduction of income-tax at lower or Nil rate; reduction of compliance on sale of immovable property by non-resident to resident individual or HUF; Removal of higher TDS/TCS for non-filers of return of income; rationalisation of transfer pricing provisions for carrying out multi-year arm’s length price determination; facility to the associated entity of the person entering into Advance Pricing Agreement (APA) to file modified return; rationalisation and simplification of safe harbour regime and expansion of presumptive taxation scheme. (iii) These measures have significantly simplified tax compliance, reduced the compliance burden, enhanced transparency, promoted voluntary compliance and improved taxpayer services. *******