Pre-Budget meeting: Ficci seeks faster resolution of tax disputes

The Federation of Indian Chambers of Commerce and Industry (Ficci) has sought urgent steps to clear the huge backlog of income-tax appeals, simplify tax deducted at source (TDS) compliance, and ensure tax neutrality for fast-track demergers, during its consultation with Revenue Secretary Arvind Shrivastava ahead of the Union Budget 2026-27.

- MONIKA YADAV

Ficci told the finance ministry that nearly 540,000 appeals involving %418.16 trillion are pending before Commissioners of Income Tax (Appeals) [CIT(A)], a situation that undermines the intent of the faceless appeals mechanism introduced in 2021. The chamber urged the government to set time-bound disposal targets, fill 40 per cent vacancies at the CIT(A) level, and adopt a dual-track system to fasttrack simple or low-value cases while allowing detailed scrutiny for complex ones. It also suggested automatic approval of virtual hearings within two weeks and refund or stay of demand where appeals remain pending for over two years without taxpayer fault.