Officials said newly appointed Central Board of Direct Taxes Chairperson Rani Singh Nair has written to all regional heads of the tax department, asking them to pull up their socks and ensure disposal of the grievances by early next week.
As per data, there are over 3,700 grievances relating to refunds and other tax issues pending with the department out of which 1,073 are "overdue" as these have not been resolved within the stipulated 60 days for resolution from the date of receipt.
Official data states that while there are four grievances pending before the department for over a year, 137 are pending for over six months, 390 are pending for periods between three and six months and 542 are pending for two to three months.
The CBDT chairperson, they said, has asked the department to ensure a "zero" pendency in this regard, noting that effective disposal of grievances of the taxpayers is a "hallmark of good governance".
Modi had underlined that his government desires to ensure better taxpayer services as he said he wants to remove the fear of the taxman hounding the people by ushering in accountability and answerability in his Independence Day speech.
After the Prime Minister criticised the department last year for being slow in disposal of grievances, CBDT, the policy-making body for income tax, had created a new setup in the I-T establishment to put focus on taxpayers' grievances.