Archive · 31 Oct 2025
CII Proposes Tax Reforms for Trust, Simplicity, and Technology in Budget 2026-27
Imagine taxes as a complicated game.
The Confederation of Indian Industry (CII) wants to make this game much easier and fairer for everyone in India.
They've asked the government to create a new set of tax rules for the upcoming budget in 2026-27.
This new system should be built on trust between people and the government, be really simple to understand, and use modern technology.
Right now, there are tons of tax problems stuck in long lines, like a huge backlog of cases.
CII wants these problems solved quickly, especially the big ones, and wants clear answers on tax rules much faster.
They also want a special promise, like a rulebook, that guarantees people get their money back on time and that tax checks are done fairly without needing to meet in person.
They also suggested making the rules for taking out taxes from payments much simpler, with fewer categories.
CII proposes a new tax compact based on trust, simplicity, and technology for India's Union Budget 2026-27.
Key demands include time-bound dispute resolution for pending tax appeals and revival of the Authority for Advance Rulings (AAR).
CII advocates for a Statutory Taxpayer Rights Charter to guarantee timely refunds and faceless assessments.
Simplification of the TDS/TCS framework is proposed, reducing over 35 categories to 2-3 broad slabs.
The industry body calls for improved tax return-processing software and clarificatory circulars on TDS for GST components.
- Who
- Confederation of Indian Industry (CII)
- What
- Presented proposals for reforming India's tax system, urging a new tax compact focused on trust, simplicity, and technology for the Union Budget 2026-27.
- When
- Presented on Friday, October 31, 2025, prior to the Union Budget 2026-27.
- Where
- India
- Why
- To shift tax administration from being dispute-driven to dispute-preventive, fostering a modern, transparent, and globally benchmarked tax regime that acts as a catalyst for investment and innovation.
Current Tax System Issues
CII Proposed Reforms
Dispute Resolution and Appeals
Current Tax System Issues
Over five lakh appeals involving Rs 18 lakh crore are pending before tax authorities, indicating a slow and complex resolution process.
CII Proposed Reforms
Proposals for time-bound dispute resolution, fast-tracking high-demand cases (above Rs 100 crore) within one year, and reviving AAR for binding clarity within six months.
Taxpayer Trust and Compliance
Current Tax System Issues
The existing Taxpayer Charter may not offer legal guarantees, and issues in return-processing software can lead to automatic adjustments for apparent mistakes.
CII Proposed Reforms
Elevating the Taxpayer Charter to a Statutory Taxpayer Rights Charter, legally guaranteeing time-bound refunds, faceless assessments, and accountability for administrative delays.
Complexity of TDS/TCS Framework
Current Tax System Issues
The current TDS/TCS framework spans over 35 categories and rates, causing reconciliation challenges and liquidity strain.
CII Proposed Reforms
Simplifying TDS/TCS to 2-3 broad slabs, exempting transactions between GST-registered entities, and issuing clarificatory circulars confirming no TDS on the GST component of composite payments.
- CII Recommendation
- New tax compact based on trust, simplicity, and technology
- Pending Appeals Value
- Rs 18 lakh crore
- High-Demand Cases for Fast-Tracking
- Above Rs 100 crore
- Advance Rulings Authority (AAR) Clarity Timeline
- Within six months
- TDS/TCS Framework Categories
- Currently over 35, proposed 2-3 broad slabs
