PM Modi launches 'Transparent Taxation - Honouring the Honest'

Prime Minister Narendra Modi on Thursday launched a platform for “Transparent Taxation – Honoring the Honest” which is the latest in a series of measures finance ministry has taken to eventually get rid income tax department off its legacy — from intrusive tax collector to tax facilitator.

“The launch of tax reforms by the prime minister will further carry forward the journey of direct tax reforms which the Central Board of Direct Taxes under its chairman Pramod Chandra Mody took over a period of time,” CBDT sources told ET.

Besides the focus on reduction in tax rates and simplification of direct tax laws, the CBDT has used the time during the lockdown enforced due to Covid 19 pandemic for introducing several initiatives to bring in efficiency and transparency in the functioning of the IT department, said a senior official of the Board.

To unfold more transparency in official communication, Document Identification Number (DIN) was introduced some time back to ensure that every communication of the department would carry a computer generated unique document identification number.

Last year, the corporate tax rates were reduced from 30 percent to 22 percent and for new manufacturing units the rate was reduced to 15 percent. Dividend distribution tax was also abolished to reduce the unwanted burden, said CBDT sources.

Similarly, to increase the ease of compliance for taxpayers, IT department, said tax officials, 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 provide for resolution of pending tax disputes the department also brought out the Direct Tax Vivad se Vishwas Act, 2020 under which declarations for settling disputes are being filed currently, said CBDT sources. To effectively reduce taxpayer grievances / litigation, the monetary thresholds for filing of departmental appeals in various appellate Courts have been raised , CBDT sources added.

Digital transactions and electronic modes of payment too have been encouraged to cutdown red tapism. 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, said a senior IRS officer.

PM Modi launches 'Transparent Taxation - Honouring the Honest' PM Modi launches 'Transparent Taxation - Honouring the Honest' Reviewed by TechCO on 8/13/2020 Rating: 5

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