Transparent Taxation
Honouring the Honest
Topics Covered
Transparent Taxation
Honouring the Honest
Topics Covered
Overview of the PM’s speech
Prime Minister Narendra Modi unveiled the ‘Transparent Taxation – Honouring the Honest’ platform via a video conference yesterday, 13th August, a platform dedicated to the reformation and simplification the tax system.
This reform aims to reward the hardworking taxpayers of our country who have been honest with taxes by decreasing complexity, taxes, litigation and increasing compliance and transparency in the system.
The Prime Minister described the reforms saying the new tax system has been modelled to be more people-centric and public-friendly, ensuring the taxpayers a courteous and rational experience from the Income Tax Department. The focus is on reducing complexity, which in turn will increase compliances. Hereon, taxpayers will be treated with dignity and will no longer be harassed.
“Effort is to make tax system seamless, painless and faceless. Honest taxpayer plays an important role in Nation development,”, he added.
The PM hopes that everyone must contribute to the development of the nation and also urges those who are still not liable to pay taxes to ask their conscience and play their part too owing to the small percentage of taxpayers in this country
What is Faceless Tax Assessment?
It aims this reform to eliminate the interface between the taxpayer and the income tax department. Some of the features are –
- Allocation of a taxpayer will now be done through an online system using analytics and Artificial Intelligence.
- Cases will be allotted randomly and automatically.
- Abolition of territorial jurisdiction.
Example – The taxpayer may hail from a particular city but the assessment order the review and the finalisation will take place in different cities.
- Central issuance of notices with Document Identification Number (DIN)
- No need to visit the income tax officer.
- The appellate decision will be team-based and reviewed.
Exceptions –
- Serious frauds, serious tax evasions, and search matters.
- International Tax.
- Black Money Act and Benami Property.
What is Faceless Appeal?
- To make the system more transparent, appeals made by a taxpayer will be allocated to any tax officer in the country randomly.
- The identity of the income tax officers will be kept unknown.
- No need to visit the income tax officer.
- The appellate decision will be team-based and reviewed.
Exceptions –
- Serious frauds, serious tax evasions, and search matters.
- International Tax.
- Black Money Act and Benami Property.
What is Tax Payers’ charter?
The Tax Payers’ charter is a list of rights and duties devised for the taxpayer to follow. It also defines the responsibilities of the government towards the taxpayer.
The tax officers now have to abide by a 14-point charter which includes the collection of tax due only while taxpayers have to commit to a 6-point expectation, including being honest and compliant.
Key Highlights
Here are the key highlights from PM Modi’s speech on August 13th –
- Tax system aims to be Seamless, Painless and Faceless.
- The platform has major reforms like Faceless Assessment, Faceless Appeal & Taxpayers Charter.
- Faceless Assessment & Taxpayers Charter have come into force from today while the facility of faceless appeal to be available from 25th Sep 2020.
- PM Modi praised the role of honest taxpayers in nation-building & said that making lives of such taxpayers easy is the responsibility of the government.
- No. of taxpayers is significantly low with only 1.5 Crore paying taxes out of 130 Crore people.
- Prime Minister urges people to introspect & come forward to pay Income taxes to build an Atma Nirbhar Bharat.
- With the launch of Tax Charter, the taxpayer is assured of fair, courteous and rational behaviour.
- The focus of the Govt is on “Banking the Unbanked, Securing the Unsecured, Funding the Unfunded & Honouring the Honest.
- Emphasis is on making every law & policy People Centric & Public Friendly rather than Power Centric.
- Initiatives like ‘Vivaad Se Vishwas’ Scheme pave the way for most of the cases to be settled out of court.
- Scrutiny of the cases reduced by at least 4 times in the last 6 years, from 0.94% in 2012-13 to 0.26% in 2018-19.
- The number of people filing income tax returns increased by about 2.5 crores in the last 6-7 years.
Overview of the PM’s speech
Prime Minister Narendra Modi unveiled the ‘Transparent Taxation – Honouring the Honest’ platform via a video conference yesterday, 13th August, a platform dedicated to the reformation and simplification the tax system.
This reform aims to reward the hardworking taxpayers of our country who have been honest with taxes by decreasing complexity, taxes, litigation and increasing compliance and transparency in the system.
The Prime Minister described the reforms saying the new tax system has been modelled to be more people-centric and public-friendly, ensuring the taxpayers a courteous and rational experience from the Income Tax Department. The focus is on reducing complexity, which in turn will increase compliances. Hereon, taxpayers will be treated with dignity and will no longer be harassed.
“Effort is to make tax system seamless, painless and faceless. Honest taxpayer plays an important role in Nation development,”, he added.
The PM hopes that everyone must contribute to the development of the nation and also urges those who are still not liable to pay taxes to ask their conscience and play their part too owing to the small percentage of taxpayers in this country
What is Faceless Tax Assessment?
It aims this reform to eliminate the interface between the taxpayer and the income tax department. Some of the features are –
- Allocation of a taxpayer will now be done through an online system using analytics and Artificial Intelligence.
- Cases will be allotted randomly and automatically.
- Abolition of territorial jurisdiction.
Example – The taxpayer may hail from a particular city but the assessment order the review and the finalisation will take place in different cities.
- Central issuance of notices with Document Identification Number (DIN)
- No need to visit the income tax officer.
- The appellate decision will be team-based and reviewed.
Exceptions –
- Serious frauds, serious tax evasions, and search matters.
- International Tax.
- Black Money Act and Benami Property.
What is Faceless Appeal?
- To make the system more transparent, appeals made by a taxpayer will be allocated to any tax officer in the country randomly.
- The identity of the income tax officers will be kept unknown.
- No need to visit the income tax officer.
- The appellate decision will be team-based and reviewed.
Exceptions –
- Serious frauds, serious tax evasions, and search matters.
- International Tax.
- Black Money Act and Benami Property.
What is Tax Payers’ charter?
The Tax Payers’ charter is a list of rights and duties devised for the taxpayer to follow. It also defines the responsibilities of the government towards the taxpayer.
The tax officers now have to abide by a 14-point charter which includes the collection of tax due only while taxpayers have to commit to a 6-point expectation, including being honest and compliant.
Key Highlights
Here are the key highlights from PM Modi’s speech on August 13th –
- Tax system aims to be Seamless, Painless and Faceless.
- The platform has major reforms like Faceless Assessment, Faceless Appeal & Taxpayers Charter.
- Faceless Assessment & Taxpayers Charter have come into force from today while the facility of faceless appeal to be available from 25th Sep 2020.
- PM Modi praised the role of honest taxpayers in nation-building & said that making lives of such taxpayers easy is the responsibility of the government.
- No. of taxpayers is significantly low with only 1.5 Crore paying taxes out of 130 Crore people.
- Prime Minister urges people to introspect & come forward to pay Income taxes to build an Atma Nirbhar Bharat.
- With the launch of Tax Charter, the taxpayer is assured of fair, courteous and rational behaviour.
- The focus of the Govt is on “Banking the Unbanked, Securing the Unsecured, Funding the Unfunded & Honouring the Honest.
- Emphasis is on making every law & policy People Centric & Public Friendly rather than Power Centric.
- Initiatives like ‘Vivaad Se Vishwas’ Scheme pave the way for most of the cases to be settled out of court.
- Scrutiny of the cases reduced by at least 4 times in the last 6 years, from 0.94% in 2012-13 to 0.26% in 2018-19.
- The number of people filing income tax returns increased by about 2.5 crores in the last 6-7 years.
Still have some queries?
Talk to an expert…
Talk to an expert via call, whatsapp or messages.
Ask questions about Tax savings, Tax returns,
notices & compliances etc.
Still have some queries?
Talk to an expert…
Talk to an expert via call, whatsapp or messages.
Ask questions about Tax savings, Tax returns,
notices & compliances etc.
