“The Union Budget 2026-27 proposals are designed to convert the vision of a taxpayer-friendly system into practical, operational measures that empower businesses to manage their tax affairs independently and transparently through a trust-based system,” said Mr Arvind Shrivastava, Secretary, Department of Revenue, Ministry of Finance, addressing the session on Detailed Tax Provisions and Analysis at the Union Budget 2026-27 Post Budget Interactive Session with Ministry of Finance organized by the Confederation of Indian Industry (CII).
The Secretary highlighted that in direct taxation, several key reforms have been introduced to enhance taxpayer control. The timeline for revising income tax returns has been extended by quarter, allowing taxpayers time to correct errors voluntarily without intervention from the department. Additionally, the system of updated returns, which has already seen widespread adoption, enables taxpayers to report new or missing information over a four-year period. “These measures ensure that taxpayers can proactively manage their liabilities, reduce disputes, and retain greater control over their assessments”, he noted.
On the customs front, he mentioned, the government is moving from transaction-based rules to entity-based systems. “Accredited Economic Operators (AEOs) and eligible manufacturers will receive preferential treatment, such as electronic sealing of exports and simplified customs procedures. This approach is intended to reduce physical inspections, enhance efficiency while streamlining compliance for businesses”, he stated.
The Secretary also emphasized the importance of transparency and clear communication in implementing these reforms. He urged both the industry and taxpayers to avoid speculation around budget proposals, noting that “The government has ensured that proposals are drafted with clarity and department is actively supplementing and clarifying measures wherever needed. Constructive engagement will ensure that the intent and spirit of these reforms is fully realized on the ground”.