Transparent Taxation Honest

PM Modi launches the platform for “Transparent Taxation – Honoring the Honest”

Today on 13th August 2020, Prime Minister Shri Narendra Modi launched the platform for “Transparent Taxation – Honoring the Honest”.

PM Modi said, “The new platform launched has major reforms like Faceless Assessment, Faceless Appeal and Taxpayers Charter. Faceless Assessment and Taxpayers Charter have come into force from today.”

“The facility of faceless appeal will be available for citizens across the country from 25th September. Today, as the tax system is becoming faceless, it is giving confidence to the taxpayer of fairness and fearlessness.” PM added.

Faceless Appeal Scheme to be implemented from 25th September 2020 which will bring a new era of Trust, Transparency, and Tax.

Faceless Assessment has come into force from today.

Date: 13th Aug 2020 Faceless Assessment Scheme.

Glance through the Taxpayer’s Charter:

Modi said, “The process of Structural Reforms in our country has reached a new stage today. Transparent Taxation – Honoring the Honest, a new system of 21st century tax systems has been launched today”.

Taxpayers can avail of the new income tax regime from this financial year onwards and enjoy the benefits of relatively less documentation and greater ease of compliance increased liquidity in the hands of the taxpayer, and flexibility of investment choices.

“Thanks to the Government Reforms and Transparency, India has seen a reduction in the number of cases for scrutiny,”. He added.

New arrangements and new facilities starting today, strengthens our commitment towards ‘Minimum Government, Maximum Governance’. This is a big step in the direction of reducing interference of the government in the life of the countrymen: PM said.

The PM said that the Fundamental and Structural Reforms were needed in the tax system of India because our system was created during the period of slavery but it evolved slowly. Post Independence a lot of changes were made, but the system largely remained the same.

He mentioned that Out of all the tax returns in the year 2012-13, there was scrutiny of 0.94%. In the year 2018-19, this figure has come down to 0.26%. This indicates that the scrutiny of the case has reduced by almost 4 times.

He further informed that amidst of all these efforts, the number of people filing income tax returns has increased by about two and a half crores in the last 6-7 years. But it is also true that in a country of 130 crores it is still very less.

Date: 13th Aug 2020 Transparent Taxation – Honoring the Honest

PM said that the taxpayer is now assured of fair, courteous and rational behavior. That is, the income tax department now has to take care of the taxpayer’s dignity sensitively.

The PM also added that along with the complexities of the procedures, tax has also been reduced in India. The tax is now zeroing on income of Rs. 5 lakh. In the remaining slabs, the tax has come down. We are one of the lowest tax consuming countries in the world in terms of corporate tax.

on 12th Aug 2020, PMO has issued a press release as per which:

The CBDT (Central Board of Direct Taxes) has carried out several major tax reforms in direct taxes in recent years. Last year the Corporate Tax rates were reduced from 30% to 22% and for new manufacturing units, the rates were reduced to 15%. Dividend distribution Tax was also abolished.

The focus of the tax reforms has been on reduction in tax rates and on simplification of direct tax laws. Several initiatives have been taken by the CBDT for bringing in efficiency and transparency in the functioning of the Income Tax Department. This includes bringing more transparency in official communication through the newly introduced Document Identification Number (DIN) wherein every communication of the Department would carry a computer generated unique document identification number.

Similarly, to increase the ease of compliance for taxpayers, The Income Tax Department has moved forward with prefilling of income tax returns to make compliance more convenient for individual taxpayers. Compliance norms for startups have also been simplified.

With a view to providing for the resolution of pending tax disputes, the IT Department also brought out the Direct Tax “Vivad se Vishwas Act, 2020” under which declarations for settling disputes are being filed currently.

To effectively reduce taxpayer grievances/litigation, the monetary thresholds for filing of departmental appeals in various appellate Courts have been raised. Several measures have been taken to promote digital transactions and electronic modes of payment.

Also Read: IT Department to complete Faceless e-Assessments by mid-September

The IT department is committed to take the initiatives forward and has also made efforts to ease compliances for taxpayers during the COVID times by extending statutory timeliness for filing returns as also releasing refunds expeditiously to increase liquidity in the hands of taxpayers.

The launch of the platform for “ Transparent Taxation – Honoring the Honest “ by the Prime Minister will further carry forward the journey of direct tax reforms.

The event was witnessed by various Chambers of Commerce, Trade Associations, Chartered Accountants’ associations, and also eminent taxpayers, apart from the officers and officials of the Income Tax Department. Union Minister of Finance and Corporate Affairs, Shrimati Nirmala Sitharaman, and Minister of State for Finance and Corporate Affairs, Shri Anurag Singh Thakur were also present on the occasion.

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