Prime Minister launches platform for "Transparent Taxation” - (13 Aug 2020)

Direct Taxation

In order to reform tax system, Prime Minister launches platform for ‘Transparent Taxation - Honoring the Honest’. The Prime Minister said that, the platform of "Transparent Taxation - Honouring the Honest, has been launched to meet the requirements of the 21st century taxation system. The platform has major reforms like Faceless Assessment, Faceless Appeal and Taxpayers Charter. With the launch of the Tax Charter, taxpayer is assured of fair, courteous and rational behaviour. Faceless appeal will be available across the country from 25th September, 2020.

The CBDT has carried out several major tax reforms in direct taxes in the recent years. Last year, the Corporate Tax rates were reduced from 30 percent to 22 percent and for new manufacturing units, the rates were reduced to 15 percent. Dividend distribution Tax was also abolished. The focus of the tax reforms has been on reduction in tax rates and on simplification of direct tax laws. Several initiatives have been taken by the CBDT for bringing in efficiency and transparency in the functioning of the IT Department. This includes bringing more transparency in official communication through the newly introduced Document Identification Number (DIN) wherein every communication of the Department would carry a computer generated unique document identification number. Similarly, to increase the ease of compliance for taxpayers, IT Department has moved forward with pre-filling of income tax returns to make compliance more convenient for individual taxpayers. Compliance norms for start-ups have also been simplified.

Further, with a view to provide for resolution of pending tax disputes, the IT Department also brought out the Direct Tax “Vivad se Vishwas Act, 2020” under which declarations for settling disputes are being filed currently. The focus of the tax reforms has been on reduction in tax rates and on simplification of direct tax laws. The launch of the platform for “Transparent Taxation – Honoring the Honest “ by the Prime Minister will further carry forward the journey of direct tax reforms.

Tags : TAXATION SYSTEM TRANSPARENCY REFORMS