PM unveils major reform with faceless tax scrutiny system

Prime Minister Narendra Modi on Thursday unveiled faceless tax scrutiny, and appealed and urged people to pay their due taxes and contribute towards nation building.

Launching the platform 'Transparent Taxation Honoring the Honest', PM Modi said the department will start faceless appeals from September 25.

Also, the Income Tax department will adopt a 'taxpayer charter' which outlines rights and responsibilities of both tax officers and taxpayers.

ALSO READ

Government can take steps like tax exemption for startups until they come out of this crisis: NASSCOM President Debjani Ghosh

"Effort is to make tax system seamless, painless and faceless... Honest taxpayer plays an important role in nation development," he said.

Asking people to pay their due taxes, Modi said while it is the responsibility of tax officers to deal with taxpayers with dignity, people should also consider paying taxes as their responsibility.

Fundamental reforms were needed in the Indian tax system, he said, adding that India is among the nations with lowest corporate tax rates.

"Taxpayers will now be given the respect they deserve. The taxpayer will now be trusted, not looked at with doubt. The tax department will have to carry out the steps and processes in a time-bound manner," the Prime Minister said. 

The taxpayers' charter was announced in the Union Budget for fiscal year 2020-21 by the Finance Minister. The facility is likely to empower citizens by ensuring time-bound services by the Income Tax Department. 

PM Modi said that over the past six years, the government has remained focused on "banking the unbanked, securing the unsecured, and funding the unfunded.”

Meanwhile, Union Finance Minister Nirmala Sitharaman said the faceless tax scrutiny assessment and appeal would help ease compliance burden of taxpayers, and increase fairness and objectivity in the tax system.

Also, the Central Board of Direct Taxes (CBDT), which administers personal income tax and corporate tax, will launch faceless appeals beginning September 25, as part of the process to reduce physical interface between tax officers and taxpayers.

"To realise this vision, the CBDT has given a framework and put in place a system in the form of this platform, a transparent efficient and accountable tax administration is what this platform brings in. It uses technology, data analytics, and also uses artificial intelligence,” the Finance Minister said.

She said the Income Tax department has undertaken several reforms, including lowering corporate tax rate from 30 percent to 22 percent for existing manufacturing units.

In a series of tweets, the Finance Ministry said the I-T department has taken up several reforms to make tax compliance easier for taxpayers.