New Delhi, Oct 31 : The Confederation of Indian Industry (CII) on Friday called for comprehensive tax reforms in the Union Budget 2026-27, including expedition of dispute resolution, simplification of TDS regime and digitised customs systems.

The apex industry body emphasised the need to move towards a "compliance system rooted in trust, simplicity, and technology,' and accountable for administrative delays.

It recommended that high-demand cases exceeding Rs 100 crore should be fast-tracked for resolution within one year through multiple virtual hearings and close CBDT monitoring.

Parallel penalty proceedings should remain suspended until the main appeal is resolved, and draft orders should be shared for factual verification before finalisation, the statement from the industry body said.

CII proposed reviving the authority for advance Rulings as an independent, quasi-judicial body headed by retired high court judges to issue binding rulings within six months.

The organisation also called for improvements to return-processing software through improved protocols ensuring that only apparent mistakes are adjusted automatically and that taxpayers can request virtual hearings when required.

CII Director-General Chandrajit Banerjee said that India's tax system needs to shift from being dispute-driven to dispute-preventive.

"The tax system must ensure that taxation not only raises revenue efficiently but also acts as a catalyst for investment, innovation and competitiveness. The Budget can be a pivot for a truly modern, transparent and globally benchmarked tax regime,' Banerjee said.

Further, CII proposed a reduction of the TDS/TCS framework to two or three broad categories, exempting transactions between GST-registered entities.

"India's TDS or TCS framework, with over thirty-five categories and rates ranging from 0.1 per cent to 30 per cent is overly complex, creating reconciliation challenges and liquidity strain," the industry body noted.

Further, it highlighted the need to modernise customs systems and indirect taxes through complete digitalisation of clearance systems via API-based data exchange.

/IANS