News and Updates

News and Updates

Transparent Taxation Platform - Honouring The Honest

 

The Transparent Taxation Platform, launched by hon'ble Prime Minister, Shri Narendra Damodar Das Modi, on 13th of August, 2020, is aimed at bringing up more transparency in official communication through the Document Identification Number (DIN) for honoring the honest taxpayer which would help to build a prosperous nation. He quoted that - "platform’s launch was another step towards ‘minimum government, maximum governance’."

Basic Terminology:

●      Tax Charter

Tax Charter is aimed for everyone who has dealings upon taxation matters. It provides a clear framework for how Taxation authorities are expected to act and to deliver services for taxpayers. It sets out what taxpayers can expect from Taxation Authorities as well, as the obligations they are expected to fulfill.

●      Faceless Assessment

Faceless Assessment/ Scrutiny means that there will be no human intervention while scrutinizing the tax return. The aim of a faceless assessment is to cut down the interaction between taxpayer and income tax officer. It would ensure that the assessing officer will not know the identity of the taxpayer and would only use technology to scrutinize details of the taxpayer.

●      Faceless Appeal

Faceless Appeals is referred as the Appeals will be randomly allotted to any taxation officer of the country. The identification of the officers, deciding the appeal will remain anonymous. The taxpayer will not be required to visit the income tax office or the officer. The appellate decision will be team-based and reviewed.

However, there are certain exceptions to Faceless Appeal which includes, serious frauds, major tax evasion, sensitive and search matters. The system also excludes International Taxation, Black Money Act And Benami Property.

Key Features of Transparent Taxation Platform (TTP):-

●      The new platform launched has major reforms like faceless assessment, faceless appeal and taxpayers charter.

●      The facility of faceless appeal will be available for citizens across the country from 25th of September, 2020. As the tax system is becoming faceless, it will boost up the confidence of the taxpayers of fairness and fearlessness.

●      In the last 6 years, the government's focus has been 'Banking the Unbanked', 'securing the Unsecured' and 'Funding the Unfunded'. Transparent Taxation - Honoring the Honest platform is unveiled in order to "reform and simplify our current tax system. The next phase of direct tax reforms is aimed at easing compliance and rewarding honest taxpayers, as the government looks to rebuild the pandemic-hit economy.

●      Honest taxpayers of the country play a major role in nation-building. When the life of an honest taxpayer becomes easy, then the country too booms up to new levels of spirits.

●      Efforts are made to make the current tax system seamless, painless and faceless. Seamless means that the tax administration should work to solve the problem instead of confusing every taxpayer and creating chaos.

●      Through the Taxpayers Charter, the Income Tax Department now has to take care of the taxpayer's dignity sensitively.

●      Last year, the Centre reduced corporate tax to 22 percent from 30 percent for existing companies and 15 per cent for new manufacturing units, scraping of dividend distribution tax and faceless assessment.

●      The Budget for 2020-21 fiscal unveiled on 1st of February, had announced a 'taxpayer charter', which is expected to have statutory status and will empower citizens by ensuring time-bound services by the Income Tax (IT) Department.

●       The charter will ensure trust between a taxpayer and the administration and reduce harassment, as well as increased efficiency of the Department.

●      The Central Board of Direct Taxes (CBDT), which is the top decision making body in direct tax matters, administers personal income tax and corporate tax. CBDT has been publicizing the faceless tax assessment scheme, was launched last year.

This new revolutionary step in the direction of taxation will be the most fruitful and applaud worthy. This will ensure that those who remain truthful to the nation, should get rewarded and those who put themselves above the state, shall be scrutinized. It is a major reform that would work for the welfare of the country. It is an initiative in the direction towards the prosperous building of the nation. We welcome this change with broad minds and happy faces, which will restore our faith on the belief that India will become one of the strongest economies, someday.

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