Ravi Agrawal, a 1988 batch Indian Revenue Service (IRS) officer, has been re-appointed as the Chairman of the Central Board of Direct Taxes (CBDT) for another year. The Appointments Committee of the Cabinet (ACC) approved the re-appointment, which will be effective from July 1, 2025, until June 30, 2026, or until further orders, whichever is earlier. This extension is on a contract basis, with terms and conditions applicable to re-employed Central Government officers, with a relaxation in the Recruitment Rules.
Agrawal assumed the role of Chairman in June 2024, succeeding Nitin Gupta, a 1986 batch IRS officer. Before becoming Chairman, Agrawal served as a Member of the CBDT (Administration) since July 2023, gaining valuable experience in the board's operations and policy-making.
The CBDT is the apex policy-making body of the Income Tax Department. It is headed by a chairman and can have up to six members, all holding the rank of special secretary. As Chairman, Agrawal is responsible for formulating and implementing direct tax policies, overseeing the Income Tax Department, and advising the Finance Minister on direct tax matters.
Agrawal has been leading the tax authority's efforts to transform tax administration into a trust-based system that relies on voluntary compliance. In the Union Budget for 2025-26, the government announced personal income tax relief for middle-income earners, estimated to be worth ₹1 trillion in revenue forgone. This move is expected to spur consumption, boost the economy, and increase revenue receipts.
Agrawal is also closely involved in drafting a new Income Tax Bill to replace the existing law. The government aims for the new bill to be clear, direct, and simpler for taxpayers and the tax administration to understand, leading to tax certainty and reduced litigation. A Parliamentary panel is currently reviewing the bill.
Under Agrawal's leadership, the CBDT rolled out the Vivad Se Vishwas Scheme in 2024 to resolve pending income tax disputes. Despite these efforts, the board missed the direct tax collection target for 2024-25 by a small margin. However, gross direct tax collections before refunds grew by 15.59 per cent to Rs 27.03 lakh crore. The shortfall was attributed to a surge in refunds, which rose by 26.04 per cent to Rs 4.76 lakh crore compared to Rs 3.78 lakh crore in FY24.
Finance Minister Nirmala Sitharaman recently chaired a Conclave of Principal Chief Commissioners of Income-tax, urging further consolidation of reforms in faceless assessment, e-verification, tax exemptions, and digital service delivery to benefit taxpayers. The government aims to complete over 2.25 lakh of the total pending 5.77 lakh appeals in FY 2025-26, addressing over Rs 10 lakh crore.
