New Delhi— Ahead of the Union Budget, the Confederation of Indian Industry (CII) has urged the government to introduce wide-ranging tax reforms — including the fast-tracking of all high-demand tax cases above ₹100 crore within a year, rationalisation of the TDS/TCS framework, and the creation of a Statutory Taxpayer Rights Charter.
Representatives from the industry body met Revenue Secretary Arvind Shrivastava and submitted a pre-Budget memorandum, outlining recommendations for both direct and indirect taxes aimed at strengthening India’s fiscal foundations under the Viksit Bharat 2047 vision.
CII said the next phase of reform should ensure that taxation becomes a catalyst for investment, innovation, and competitiveness, not just a tool for revenue collection.
“The next stage of reform must ensure that taxation not only raises revenue efficiently but also acts as a catalyst for investment, innovation, and competitiveness,”
said CII Director-General Chandrajit Banerjee.
Key Recommendations from CII
- Fast-track Tax Cases:
Resolve all high-demand cases above ₹100 crore within one year through multiple virtual hearings and close monitoring by the Central Board of Direct Taxes (CBDT).
Parallel penalty proceedings should remain suspended until the main appeal is resolved. - Revive Authority for Advance Rulings (AAR):
CII proposed reviving the AAR as an independent quasi-judicial body, headed by retired High Court judges, to deliver binding rulings within six months. - Simplify the TDS/TCS Structure:
The current system with 35+ categories and rates from 0.1% to 30% creates liquidity and compliance challenges. CII suggested cutting this down to two or three broad categories and exempting GST-registered transactions, since these are already digitally tracked. - Statutory Taxpayer Rights Charter:
CII recommended elevating the existing taxpayer charter into a legally enforceable statute, guaranteeing time-bound refunds, faceless appeals, and accountability for delays. - Paper-Free Customs by 2028:
The industry body proposed a roadmap toward 100% digital customs — including e-refunds, e-adjudication, and e-appeals — to improve efficiency and reduce delays. - Simplify Indirect Tax Procedures:
CII called for the modernisation of customs systems, the consolidation of multiple exemption notifications into “mega-notifications,” and simplified appeal procedures for ease of doing business.
Why CII Says Reform Is Urgent
CII noted that over 5 lakh appeals involving ₹18 lakh crore in disputed tax demands are pending before Commissioners (Appeals).
It said resolving these quickly would improve trust, compliance, and fiscal efficiency, and free up capital for investment.
The body also highlighted persistent issues in return-processing software at the Central Processing Centre (CPC) and urged the government to adopt improved protocols that ensure fairness and transparency.
“Tax simplification is not a concession; it is an investment in governance efficiency,”
Banerjee remarked.
“CII’s proposals are not about cutting taxes, but cutting friction. By ensuring predictability, speed, and respect for taxpayers, India can reinforce its position as a high-growth, rule-based economy.”
The Bigger Picture
With the success of GST 2.0, strong revenue performance, and a credible fiscal consolidation roadmap, CII believes India is now positioned to pursue a modern, transparent, and globally benchmarked tax system.
The proposed reforms — especially time-bound dispute resolution, a simplified TDS regime, and digital customs — could transform India’s fiscal landscape into one that is growth-friendly, efficient, and investor-trusted.