Union Finance Minister Nirmala Sitharaman may announce further direct tax administration reforms in the upcoming Budget to make it easier for individuals and businesses to comply with tax laws, government sources said. The current practice of different interpretations of tax laws by tax officers are leading to tax disputes and often result in revenue loss for the exchequer.

The government's direct tax-GDP ratio has been hovering over 5-6 per cent in recent years. The ratio further declined to 3.7 per cent in the first half of the current financial year, but is expected to improve a ...