Bridging Borders, Building Trust’-CBDT
Why in news?
CBDT’s “Bridging Borders, Building Trust” is a mega outreach programme on international taxation and the newly reformed Income‑tax regime (Act 2025 + Rules 2026), held in New Delhi on 28 April 2026. It is in news because it signals a shift towards trust‑based, transparent, and globally‑aligned tax governance, especially for cross‑border transactions.
International Taxation & "Bridging Borders"
- Record APA Signings: The CBDT signed a record 174 Advance Pricing Agreements (APAs) in FY 2024-25, the highest ever in a single year.
- First Multilateral APA: India successfully signed its first-ever Multilateral APA (MAPA), signalling deeper cooperation with multiple global tax jurisdictions.
- Bilateral Success: Significant agreements were concluded with key partners including the US, UK, Japan, and Singapore to eliminate double taxation.
- Foreign Asset Reporting: The NUDGE initiative has been expanded to help taxpayers correctly report foreign assets and income, preventing penalties through proactive alerts.
Building Trust & Taxpayer Services
- Non-Intrusive Administration: The CBDT is using Big Data and AI to identify discrepancies and "nudge" compliance rather than launching immediate audits.
- Faster Refunds: The department has set strict timelines for the approval and issuance of refunds to improve liquidity for taxpayers.
- Litigation Management: New monetary thresholds have been raised for filing appeals to reduce the backlog in Tribunals and High Courts.
Regulatory Overhaul (Income Tax Act, 2025)
- Effective Date: The new Act is scheduled to be effective from April 1, 2026.
- Language Simplification: The Act reduces the number of sections by nearly 40%, removing obsolete and redundant provisions.
- New Terminology: Replaces "Assessment Year" and "Previous Year" with a unified "Tax Year" for better clarity.
- Digital Assets: Formally defines and integrates Virtual Digital Assets (VDAs) like cryptocurrencies into the tax framework.
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