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DAILY NEWS ANALYSIS

  • 14 August, 2020

  • 5 Min Read

Transparent Taxation — Honouring the Honest

Transparent Taxation — Honouring the Honest

Context:

  • Prime Minister Narendra Modi has launched a “Transparent Taxation — Honouring the Honest” platform that provides faceless assessment, faceless appeal and a taxpayers’ charter.

Reforms:

  • Reduction in corporate tax from 30% to 22% for existing companies and from 25% to 15% for new manufacturing companies.
  • Abolition of the dividend distribution tax.
  • Steps have been taken to bring efficiency and transparency in the functioning of the Income Tax Department, including Document Identification Number (DIN) and pre-filling of income tax returns to make compliance more convenient.

How does it work?

  • With the help of technology, the cases of scrutiny will now be allocated randomly to any official in any part of the country.
  • The document identification numbers will be issued from the central database.
  • A review of orders will also be done by another team at some other place, chosen randomly using data analytics and artificial intelligence.
  • The officials in the Directorate General of Income Tax (Investigation) and the Principal Commissioner of I-T/Chief Commissioner of I-T (TDS) will be the only competent authorities for approving survey actions to gather information for scrutiny and assessment.

Advantages:

  • In the new system, the department would escape unnecessary litigation and the officials would get reprieve from the energy otherwise spent on transfers and postings.
  • It seeks to eliminate corrupt practices by doing away with the territorial jurisdiction of income-tax offices.
  • The platform would instil a sense of fairness and fearlessness in the taxpayers.
  • The efforts are directed at making the tax system seamless, painless and faceless.
  • The new facilities are in consonance with the government’s motto of ‘minimum government, maximum governance.

Source: TH


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