Transparent Taxation Platform – PM Modi has launched a new platform for transparent taxation honoring the Honest. The objective is to make the tax system seamless, painless, and paperless. The new platform will have a faceless assessment, faceless apple, and taxpayer charter. You must be aware that CBDT has launched various major tax reforms this year including Vivad se Vishwas scheme and abolition of dividend distribution tax. A transparent taxation platform is an additional step to help taxpayers.
The platform will bring transparency, efficiency, and accountability to the tax system. The new platform will also increase tax compliance. This platform makes use of the latest technology data analytics, artificial intelligence, and a faceless system. Key features of the Transparent Taxation Platform are given below.
Key Features of Transparent Taxation Platform
This platform is designed for the faceless assessment. This means the system will eliminate the direct interface between the taxpayer and the income tax department. This will, in turn, reduce the scope of corruption by income tax officials.
The selection of taxpayers for the assessment will be done via the system. The system will make use of analytics and artificial intelligence for the selection. The assessment will be done remotely. The case allotment will be done on a random basis. The taxpayer is not required to visit the Income-tax office or officer. The decision and assessment will be done by a team with a proper review of the mechanism. Any assessment, other than the exception outside the faceless system will be invalid. The cases that are exceptions are tax evasion, international tax, black money, benami property, etc.
In addition to assessment, the appeal will also be carried out in a faceless manner. The appeals will be allocated randomly to any officer in the country. The identity of the officer allocated will remain secret. In appeal also taxpayer is not required to visit the income tax office or officer. The decision will be taken by the team remotely based on facts and figures.
A new taxpayer charter is introduced along with this scheme. The announcement was made by the Finance Minister Nirmala Sitharaman in the budget 2020 speech. The formal launch is done with this platform. The objective of the new taxpayer charter is to establish trust between taxpayer and tax administration. The charter will also improve tax compliance.
A taxpayer charter cell will be created for each zone. Taxpayers can approach charter cell. The charter shall list out income tax department’s commitments to income taxpayers.
Benefits of Honoring the Honest Platform to Tax Payers
Taxpayer Charter & honoring the honest will help taxpayers in the following ways.
- It provides prompt, courteous, and professional assistance to taxpayers in dealing with the taxpayer.
- The platform shall provide fair and impartial appeal and review mechanisms.
- The resolution of all income tax proceedings within a time-bound manner prescribed under law.
- The platform will take care of the privacy of the taxpayer. No more intrusive than necessary in any inquiry, examination or enforcement action.
- The information provided by the taxpayer shall not be disclosed unless authorized by the law.
- Team-based assessment and team-based review eliminates the bias opinion and chance of corruption.
- No need to physically visit an income tax office for the assessment. It will be a completely faceless assessment.
- The Interface will be provided to the taxpayer for logging complaints. The prompt response and disposal of complaints via platform.
- The resolution of the income tax-related issues in a time-bound manner.
- A new platform will reduce the cost of compliance. The entire system will be online and does not require traveling and other administrative arrangements.
Expectations of the Income Tax Department from Tax Payer
- Be Honest and Compliance
- Be //Informed
- Keep Accurate Records
- Know what the representative does on his behalf
- Respond in Time
- Pay Tax in Time
Other Tax Reforms
In addition to new taxation platform CBDT has carried out several major tax reforms in direct taxes. The prime focus is to simplify direct tax laws. Corporate Tax rate were reduced from 30% to 22% in 2019. Dividend distribution tax was abolished in 2019. A new facility of DIN (Document index number) is initiated in which every communication will be identified by computer generated identification number. A pre-filled tax return is also introduced to ease compliance for the tax payers.
In short, government is taking up various initiative to improve tax system and to ease tax payer life.