- In a far-reaching and welcome move, the Prime Minister announced the introduction of expanding the faceless assessment scheme to all taxpayers, unveiled a single page Taxpayers Charter, and promised a faceless appeal mechanism from next month. Pointing out that the Income Tax Department in any city handled all issues about scrutiny, notice, survey, or confiscation by the income tax officer essaying the principal role, he announced the ending of much-maligned practice from now on.
PC: the hindu
- The PM also mentioned that the scrutiny cases will be henceforth allotted randomly to any part of the country ostensibly to nullify the taxpayer from knowing people in the income tax department or exert undue influence to subvert/circumvent the case. As if on cue, the CBDT (Central Board of Direct Taxes) expanded the scope of the faceless assessment, introduced last year, by asking its officers to pass all assessment orders via National e-Assessment Centre.
- Some of the salient Taxpayers Charter unveiled would go a long way in reposing the confidence of honest payees towards the Department considered unfriendly. The Income Tax Department has committed to providing fair, courteous, and reasonable treatment to the taxpayer, will treat every taxpayer as honest and provide a mechanism to appear and review, collect the correct amount of tax, respect privacy of the taxpayer & maintain confidentiality, reduce the cost of compliance and hold its authorities accountable.
PC: beltandroad
- Further, the Department expects the taxpayer, to be honest, informed, aware of compliance obligations, keep accurate records, respond in time, and pay taxes promptly. The PM further exhorted that the tax system should be seamless, painless, and faceless making the administration solving the problems instead of complicating matters. During his televised speech, what he cited about being tax-compliant should be a matter of grave concern mirroring the overall tax scenario as it exists now.
- It is unbelievable and unfathomable to digest the fact that there are hardly 1.5 crore taxpayers in a country with a population of 130 crores. Mind-boggling to think the hardly minuscule percent of the populace are coming under the ambit of direct taxpayers with majority blissfully out of the net. Come to think of it, there is a crying need to capture as many taxpayers into the bracket to widen the net and as such, introducing wide-ranging all-encompassing reforms is inescapable to expand the reach sooner than later.
PC: the logical Indian
- Prima facie, a problematic area is the majorly unorganized sector dotting the country’s economic landscaping that provides an opportunity to scores of the legally eligible populace to conveniently wriggle out of the tax bracket. Efforts should be initiated to address this long-neglected aspect with any eye to shore up tax compliances leaving out none who are eligible to be brought under the net otherwise. The Finance Ministry in conjunction with the Economic Advisory Commission should roll out desired measures.
