Our tax system should be seamless, painless and faceless, says PM Modi

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Implementation of the faceless assessment scheme is set to eliminate the human interface between the taxpayer and representatives of the income tax department. Most industry participants welcome the implementation of the scheme by the government. “The PM has laid down an excellent vision of completely faceless assessments and also soon to be launched faceless appeals. The new taxpayers’ charter is based on easing compliance for all taxpayers and we welcome the initiative,” says Archit Gupta, founder and CEO, ClearTax.

Prime Minster Narendra Modi on Thursday unveiled the taxpayers’ charter, which spells out the Income Tax (I-T) department’s commitments to taxpayers as well as expectations from them. Finance Minister Nirmala Sitharaman had announced that the charter was in the works during Union Budget 2020.

The Taxpayers' Charter released by the Income Tax Department said it was committed to provide fair and reasonable treatment, treat taxpayer as honest, provide a mechanism for appeal and review, provide timely decisions, and reduce cost compliance among others."Though this was known to most of the taxpayers and officials, the introduction of an exclusive charter changes the perception of both the taxpayers and officials from taxpayers being scrutinised as offenders to being viewed as an equal stakeholder," said Divakar Vijayasarathy, founder and managing partner, DVS Advisors LLP. Click here to read what experts have to say

Faceless scrutiny, appeals to ease taxpayers' compliance burden, increase fairness in tax system: FM Sitharaman

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With the launch of 'Transparent Taxation - Honoring the Honest' platform,the CBDT has given a framework and put in place a system in the form of this platform, a transparent efficient and accountable tax administration is what this platform brings in. It uses technology, data analytics, and also uses artificial intelligence. What does this mean to the taxpayer in the country. It eases compliance burden, it brings in fair objective and a just system, there shall not be any physical interface between the department and the tax payer and to an extent it shall bring in certainity of Information," Finance Minister Nirmala Sitharaman said. (PTI)

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Prime Minister Narendra Modi said tax returns scrutiny had fallen to 0.26 percent of all returns in 2018-19. "In 2012-13, 0.94 percent of all tax returns were scrutinised. In 2018-19, this figure came down to 0.26 percent.This means, case scrutiny has reduced about four times," PM Modi said. Click here to read more

The platform is aimed at bringing more transparency in official communication through the newly-introduced Document Identification Number (DIN).

Modi urged taxpayes to come forward and file tax returns."Those who are able to pay tax, but they are not in the tax net yet, they should come forward with self-motivation, this is my request and hope.Let us world towards the reolution of new India, self-reliant India," the PM said.

Amidst all the reforms introducted by Centre, the number of people who have filed income tax returns has increased by about two-and-a-half crores in the last 6-7 years. However, it is also true that in a country of 130 crores it is still very less: Prime Minister Narendra Modi

Of all the tax returns filed in 2012-13, scrutiny of 0.94 percent cases was done.In the year 2018-19, this figure came down to 0.26 percent. That is, the scrutiny of the case has reduced by almost 4 times. This proves how extensive the change is. In the last 6 years, India has seen a new model of governance developing in tax administration: PM