PM Modi To Launch Transparent Taxation Platform On 13 Aug

Marco Green
August 13, 2020

Prime Minister Narendra Modi said tax returns scrutiny had fallen to 0.26 percent of all returns in 2018-19. "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", the prime minister said before concluding his speech.

Faceless assessment: PM Modi said it shouldn't matter who the taxpayer is and who the tax officer is.

The event will be witnessed by various Chambers of Commerce, Trade Associations, Chartered Accountants' associations and also eminent taxpayers, apart from the officers and officials of Income Tax Department. The faceless assessment and taxpayer charter will come into place from today itself, while the faceless appeal is going to be applicable from September 25. But in a country with 130 crore people, this number is very less. Seamless means the tax administration should work to solve the problem instead of engaging every taxpayer. "Painless means right from technology to the rules, the process should be simple", he said. All interactions between the tax department and taxpayers will be "faceless" and done online to remove the scope of harassment and corruption.

The Ministry of Finance said that along with the abolition of territorial jurisdiction and cases being allocated automatedly at random, the selection will only be through data analytics and AI. Those capable of paying tax but are not in the tax bracket should come forward. Meanwhile, in order to eliminate human interface, the Faceless appeal on the lines of Faceless assessment will be followed. Though not much details have been shared, it is likely that the Prime Minister will talk about the Citizens' Charter, as proposed in the Budget, besides other new initiatives such as the new phase of faceless assessment and the new mechanism to encourage taxpayers for voluntary compliance. Several initiatives have been taken by the CBDT for bringing in efficiency and transparency in the functioning of the Income Tax (IT) Department, the statement said. This now comes into effect from Thursday.

With the objective of enhancing the efficiency of the delivery system of the Income Tax Department, the government has amended the provisions of the Income-tax Act to mandate the Central Board of Direct Taxes (CBDT) to adopt a Taxpayers' Charter. Similarly, to increase the ease of compliance for taxpayers, the IT Department has moved forward with pre-filling of income tax returns to make compliance more convenient for individual taxpayers.

Other reports by Click Lancashire

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