In Lok Sabha, the Finance Minister, Smt. Nirmala Sitharaman, answered *Starred Question No. 211 on Monday, 3 August 2026/12 Shravana, 1948 (Saka), on “Ease of Tax Compliance.” The question was raised by Shri Bunty Vivek Sahu and Shri Krishna Prasad Tenneti, Members of Parliament. A detailed statement was laid on the Table of the House.
The Finance Minister informed the House that the Income Tax Department has launched PRARAMBH 2026—Policy Reform and Responsible Action for Mission Viksit Bharat, a nationwide awareness campaign to facilitate taxpayers’ transition from the Income-tax Act, 1961 to the Income-tax Act, 2025.
The campaign includes taxpayer workshops across the country, multilingual awareness material, Frequently Asked Questions, the publication “KAR SETU—The Bridge between the Old and New Tax Act,” an interactive quiz on the MyGov platform, print and outdoor publicity, and promotion of digital initiatives such as the Income Tax Website 2.0 and the AI-enabled chatbot “KAR SAATHI.”
As part of the educational and awareness initiative, the Department prepared brochures on newly introduced forms and procedures in English, Hindi and 10 regional languages. More than 1.75 lakh copies of brochures and other publications have been distributed through field formations and Aaykar Seva Kendras.
Technology-enabled communication has also been strengthened through QR-enabled brochures linked to digital explanatory content and ‘Samvaad’ video sessions. The AI-enabled chatbot, KAR SAATHI, has been deployed to assist taxpayers in understanding the provisions of the new Income-tax Act.
A total of 304 physical outreach events were organised under PRARAMBH 2026 in English, Hindi and regional languages across the country. Approximately 50,000 taxpayers and stakeholders participated in these outreach programmes.
In the Madhya Pradesh and Chhattisgarh Region, 31 physical outreach programmes were conducted, reaching approximately 2,500 taxpayers and stakeholders. These programmes facilitated direct interaction and dissemination of information among taxpayers, traders and other stakeholders.
A dedicated outreach programme was also conducted in Chhindwara, Madhya Pradesh, on 24 July 2026, in which approximately 100 taxpayers and stakeholders participated.
Reduction in tax litigation through revised monetary limits
The Government enhanced the monetary limits for filing departmental appeals through CBDT Circular No. 9/2024 dated 17 September 2024, with the objective of reducing litigation and enabling more efficient management of departmental resources.
In Chhindwara, two cases pending before the Income Tax Appellate Tribunal were withdrawn following the issuance of the Circular. These cases involved a total disputed tax demand of ₹55 lakh.
At the national level, the impact of the revised monetary limits across different judicial forums is as follows:
| Forum | Cases withdrawn | Appeals not filed | Estimated reduction in disputed tax demand |
| Income Tax Appellate Tribunal | 443 | 11,390 | ₹3,662.82 crore |
| High Courts | 4,791 | 5,565 | ₹9,218.71 crore |
| Supreme Court | 744 | 534 | ₹3,807.15 crore |
| Total | 5,978 | 17,489 | ₹16,688.68 crore |
The revised thresholds have, therefore, resulted in the withdrawal of 5,978 cases and prevented the filing of 17,489 appeals, collectively affecting 23,467 departmental cases and appeals. The estimated reduction in disputed tax demand across the three judicial forums amounts to ₹16,688.68 crore.
Major measures to ease tax compliance
The Finance Minister further informed the House that CBDT has introduced several measures during the last 12 years to simplify tax compliance and improve taxpayer services. These measures apply uniformly across the country, including Chhindwara district in Madhya Pradesh.
The key initiatives include the introduction of pre-filled Income-tax Returns and the new Form 26AS; the facility to file updated returns; Faceless Assessment and Faceless Appeal Schemes; and electronic issuance of certificates for deduction of income tax at lower or nil rates.
Other measures include reduction of compliance requirements relating to the sale of immovable property by a non-resident to a resident individual or Hindu Undivided Family; removal of higher TDS and TCS provisions for non-filers of income-tax returns; and rationalisation of transfer-pricing provisions for multi-year determination of the arm’s length price.
CBDT has also enabled an associated entity of a person entering into an Advance Pricing Agreement to file a modified return, rationalised and simplified the safe-harbour regime, and expanded the presumptive taxation scheme.
These measures have significantly simplified tax compliance, reduced the compliance burden, enhanced transparency, promoted voluntary compliance and improved taxpayer services
The answer can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2026/08/LS-Ease-of-Tax-Compliance-03.08.2026.pdf
