Union Minister of Finance & Corporate Affairs Smt. Nirmala Sitharaman presided over the 166th anniversary of Income Tax Day observed by Central Board of Direct Taxes (CBDT), in New Delhi today. Union Minister of State for Finance Shri Pankaj Chaudhary also graced the event with his presence.
Shri Arvind Shrivastava, Secretary, Revenue; Shri Ravi Agrawal, Chairman, CBDT; Members of CBDT and other officers and officials of the Department were present besides, the senior officers in Government of India.
The Union Finance Minister also unveiled new income tax mascot “Madhukar” on the occasion of 166th Income Tax Day. The Finance Minister extended her best wishes to the Income Tax Department on the occasion of the 166th Income Tax Day.
She also congratulated the Department for its commendable work in efficiently drafting the New Income Tax Bill, 2025 within the stipulated timeline. She appreciated that the Department is actively addressing the recommendations received from the Select Committee.
Smt. Sitharaman noted that the use of simplified language in the Bill marks a significant shift in making the provisions easier to understand, reducing the potential for misinterpretation and enhancing taxpayer-centricity and compliance.
She commended the Department’s agility and its readiness to embrace reform, which has led to a number of transformative initiatives over the past five years, including:
Introduction of the Faceless Assessment system to promote transparency and accountability
Implementation of the Taxpayer Charter, reinforcing the rights of taxpayers
Adoption of cutting-edge technology such as pre-filled returns, which has improved convenience and enabled faster refunds
Launch of the Vivad se Vishwas scheme to resolve long-standing tax disputes
Use of data analytics and targeted nudge campaigns to address tax evasion
And now, the drafting and introduction of the New Income Tax Bill, 2025
These initiatives, she noted, have contributed to building a non-adversarial tax environment and increasing public confidence in the system. The Income Tax Department has consistently demonstrated a high level of professionalism in the service of the nation.
Looking ahead, Smt, Sitharaman emphasised the importance of continuing this momentum. She urged the Department to focus on five key priorities, as identified during the Principal Chief Commissioners’ Conclave held in June 2025:
Accelerate the disposal of disputed demands pending before the Faceless Appellate Authority
Identify and withdraw appeals falling below the prescribed monetary thresholds within the next three months
Ensure timely processing of refunds and prompt resolution of taxpayer grievances
Analyze grievances to understand root causes of pendency and develop actionable strategies
Regularly review performance indicators, particularly those related to grievance redressal and implementation of appellate orders
The Union Finance Minister reaffirmed the potential for further technological advancements to enhance consistent and efficient service delivery. She concluded by encouraging the Department to reaffirm its duty to serve taxpayers with fairness, empathy and professionalism, earning public trust not just through policy but through conduct
In his address on the occasion, Union Minister of State for Finance Shri Pankaj Chaudhary highlighted that the government over the last decade has striven to create a tax policy that is simple, certain and easy to comply with and has undertaken far-reaching reforms to achieve these objectives.
Shri Chaudhary lauded the equally impressive reforms have been implemented on the process side, harnessing technology to enhance taxpayer services. The emphasis has decisively shifted from enforcement to facilitation.
Shri Chaudhary emphasised that the Income Tax bill 2025 having an objective to simplify the language and structure of the income tax law is a culmination of the Department’s collective efforts, guided by a clear directive of the Government.
The Income Tax Bill 2025 aims at creating a code that is not just understood by experts but is also accessible to the common citizens. Shri Chaudhary concluded his address by conveying his best wishes to every member of the Income Tax Department.
In his address, Shri Arvind Shrivastava, Secretary, D/o Revenue, Ministry of Finance, while extending best wishes to the officers and officials of the Department, appreciated the deep and deliberate transformation the Income Tax department in the last decade.
From faceless assessments to the taxpayer charter, from early processing of returns to proactive grievance redressal, the department has moved from a rule-bound legacy to a platform-driven public service institution.
This transformation didn’t happen through one initiative. It happened through a thousand small, hard-won improvements, made consistently and patiently over time. Shri Shrivastava emphasized that going forward there would be faster, smarter grievance handling using advanced data analytics tools which would cut response times even further.
In the future there would be stronger systems for e-verification, matching, and nudge-based enforcement to make non-compliance harder and voluntary compliance easier. All this would be possible through the workforce of the Income Tax Department who are trained, supported, and future-ready.
Future ready Department’s role will become more central not just in collecting revenue, but in formalising the economy, fostering trust, and enabling growth. Earlier, in his inaugural address, Shri Ravi Agrawal, Chairman, CBDT welcomed the dignitaries on behalf of the Income Tax Department.
In his welcome address, he provided an overview of how the Department has leveraged technology to become more efficient, transparent, and citizen-centric. From manual files to insights driven by data analytics, from physical scrutiny to faceless assessments, and from basic enforcement to a system that places trust first.
Tax administration has not merely responded to change, but has become a driver of change. He further emphasized the Department’s focus on the NUDGE campaign (Non-Intrusive Usage of Data to Guide and Enable Taxpayers), which uses behavioural insights and transaction-level data to detect discrepancies, thereby enabling taxpayers to review and voluntarily update their income tax filings.
He expressed gratitude for the sincere contributions of the workforce of the Income Tax Department in implementing landmark reforms such as dynamic jurisdiction with faceless assessments, pre-filled returns, and in conceptualising, drafting, and refining the new Income Tax Bill, 2025.
He concluded by reminding employees to embrace the PRUDENT approach to be Professional, Responsive, upgrading in knowledge and skills, Diligent, to Enforce with Empathy, Non-intrusive, and Technology-driven in all spheres of their work.
Member (Administration and TPS&R), CBDT, Shri Pankaj Kumar Mishra administered the Pledge, as a reaffirmation of the department’s commitment to integrity, transparency, and dedicated service to the nation and emphasizing the PRUDENT approach as the guiding principle.
CBDT Certificates of meritorious service, certificates of excellence in service as well as exceptional service were also conferred to various officials. The winners of the All-India Mascot Design Competition held on the MyGov Portal were announced in the presence of Hon'ble Finance Minister.
A film on the technological initiatives of the Department through the ages, was also showcased. In her vote of thanks, Smt. Ritu Singh Sharma Additional, Director General (Public Relations, Publications & Publicity), CBDT, thanked the Union Finance Minister for gracing the occasion and inspiring with her words of wisdom.
She also thanked the Union Minister of State for Finance for his words of encouragement and all the other dignitaries present on the occasion.