The Central Board of Direct Taxes (CBDT) is set to enhance its operations in 2025 by adopting a so-called 'PRUDENT' approach, as highlighted by chairman Ravi Agrawal in his end-of-year address to the Income Tax Department.
"Let the PRUDENT approach, with all its seven elements, continue to guide us as we navigate the complexities of our work. This ensures that we not only compete with ourselves but also continually set new standards in public service. Let us recognise our strengths, identify areas for improvement, and remain adaptable to meet the challenges of this ever-changing landscape," Agrawal said in his address.
According to Agrawal, the acronym PRUDENT stands for specific traits: 'P' for professionalism, 'R' for being responsible and responsive, 'U' means understanding transactions and businesses, 'D' represents dedication and due diligence, 'E' represents effective enforcement, 'N' stands for for non-intrusive administration and 'T' reflects technology-based tax administration.
The chairman noted that the past year saw significant progress, with over 2.4 lakh grievances resolved, including 1.75 lakh through the E-nirvan platform. Looking forward, Agrawal called for a renewed commitment to collaborative efforts, timely grievance resolution, and leveraging technology to enhance taxpayer services.
"With a clear vision for 2025, let us build a workplace that is both productive and fulfilling," Agrawal stated, while wishing all staff a successful and healthy New Year.
He emphasised the use of technology to improve taxpayer services and compliance, noting that these efforts have strengthened trust in the tax system. Looking ahead to 2025, Agrawal urged the department to maintain its commitment to excellence by focusing on collaborative efforts, timely grievance resolution, and continuous improvement.
"We have also leveraged technology to encourage voluntary compliance, enhanced training programmes, improved taxpayer services, and refined our approach to investigations and disputes. We have undertaken a comprehensive review of the Income Tax Act—an exercise wherein officers and stakeholders across the country have contributed. These efforts underscore our commitment to addressing taxpayer concerns effectively and building trust in the system," Agrawal added.