The Central Board of Direct Taxes (CBDT) is set to enhance its operations in 2025 by adopting a so-called 'PRUDENT' approach, as highlighted by chairman Ravi Agrawal in his end-of-year address to the Income Tax Department.

"Let the PRUDENT approach, with all its seven elements, continue to guide us as we navigate the complexities of our work. This ensures that we not only compete with ourselves but also continually set new standards in public service. Let us recognise our strengths, identify areas for improvement, and remain adaptable to meet the challenges of this ever-changing landscape," Agrawal said in his address.

According to Agrawal, the acronym PRUDENT stands for specific traits: 'P' for professionalism, 'R' for being responsible and responsive, 'U' means understanding transactions and businesses, 'D' represents dedication and due diligence, 'E' represents effective enforcement, 'N' stands for for non-intrusive administration and 'T' reflects technology-based tax administration.