FM Directs Income Tax Dept to Expedite Dispute Resolution, Withdraw Appeals Below New Threshold in 3 Months

The Finance Minister has directed the Income Tax Department to expedite the process of dispute resolution and to withdraw all pending appeals before various forums where the tax effect is below the newly prescribed monetary thresholds. The directive, which asks for this to be completed within three months, is a major step towards reducing the massive backlog of tax litigation. By withdrawing smaller appeals, the department can focus its resources on high-value cases. This move will provide significant relief to a large number of taxpayers, especially small and medium-sized businesses, who will get a quicker finality to their long-pending disputes. The directive is part of the government's broader policy to create a more non-adversarial and taxpayer-friendly tax environment, thereby improving the ease of doing business in the country.