Speaking at the 167th Income Tax Day celebrations, Sitharaman said, “Tax certainty is an economic imperative.”
She asked tax officials to adopt an empathetic approach while enforcing tax laws and distinguish between deliberate tax evasion and genuine mistakes made by taxpayers.
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Emphasising the need for balanced enforcement, she said the department should know how to draw a line between those deliberately evading tax and those committing bona fide errors.
The finance minister also outlined five priorities for the Income Tax Department, i.e., recognise, respond, redress, reflect and reform.
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“Exercise the power that the tax law gives you with humility…be agile,” she told officials.