India’s tax reforms are entering a crucial phase, focusing on simplification, modernisation, and trust-based administration, BVR Subrahmanyam, NITI Aayog CEO, said.
He stated that the country is shifting from enforcement-driven compliance to governance built on trust. The reforms aim for fair, proportionate, and transparent mechanisms while protecting fiscal integrity.
NITI Aayog released the second working paper in its Tax Policy Series, titled “Towards India’s Tax Transformation: Decriminalisation and Trust-Based Governance.” The paper reviews criminal provisions in the Income-tax Act, 2025, proposing decriminalisation of minor defaults and reinforcing judicial discretion. It suggests limiting imprisonment to serious cases of fraud or willful evasion.
Officials and tax experts, including representatives from CBDT, CBIC, ICAI, and DPIIT, attended the discussion. Subrahmanyam highlighted that the reforms will reduce litigation, improve investor confidence, and strengthen voluntary compliance. The roadmap aims to create a fair, predictable, and globally competitive tax system built on trust.
