Tax Reforms : PM Launches Transparent Taxation

After bringing out reforms in the Education sector by introducing the New Education Policy (NEP) 2020, Prime Minister Narendra Modi today announced reforms in the Direct Taxes in the country.

PM has launched the platform for ‘Transparent Taxation – Honoring the Honest’ which is aimed at bringing ‘more transparency’. PM said that the new initiative will benefit several honest tax payers whose hard work powers national progress.

He added that the new move is part of the “reforming and simplifying” the country’s tax system. The new move is expected to bring transparency in the official communication through the newly-introduced Document Identification Number (DIN).

“Our tax system should be seamless, painless and faceless. Seamless means that the tax administration should not confuse taxpayers instead should work to solve the problem,” PM said.

“Right now, the tax department handles everything. This will end now. The matters of scrutiny will now be assigned to IT department officials randomly using the technology. Algorithms will decide who will handle the case. Apart from issues related to taxation, appeals will also be faceless,” PM added.

“With faceless assessment, the taxpayer is assured of fair, courteous and rational behaviour. That is, the Income Tax department now has to take care of the taxpayer’s dignity sensitively. The IT department has to trust the taxpayer and it cannot doubt anyone without any basis,” PM Modi said during the launch of ‘Transparent Taxation’.

PM Modi expressed that the country has seen a ‘new model of governance’ developing in tax administration in the last 6 years. Admitting that the number of people who filed income tax returns has increased by about two-and-a-half crores in the last 6 to 7 years, PM has urged ‘more’ taxpayers to come forward and file the tax returns. He said that the increased number is “still very less” in a country of 130 crore population.

He urged more people to pay tax who can “afford” to pay tax even though when they are not yet in the tax bracket. “Those who are able to pay tax, but not in the tax net yet, they should come on their own to pay taxes. This is my request and hope. Let us work towards the resolution of new India, self-reliant India,” said PM Modi in his address to the nation.