'Honoring the honest': PM Modi launches platform for 'Transparent Taxation'

Prime Minister Narendra Modi on Thursday launched the platform for “Transparent Taxation – Honoring the Honest” via video conferencing.

"This platform has big reforms such as faceless assessment, faceless appeal, and taxpayers charter. Faceless assessment & taxpayers charter come in force from today, whereas faceless appeal service will be available from September 25," the PM said in his address.

Modi further added, "There was a time when there used to be a lot of talk about reforms. Sometimes decisions were taken out of compulsion or pressure and were called reforms. Due to this, the desired results could not be achieved. Now this thinking & approach, both have changed."

"Our effort is that our tax system should be seamless, painless, faceless," he said.

The event was witnessed by various Chambers of Commerce, Trade Associations, Chartered Accountants' associations and also eminent taxpayers, apart from the officers and officials of the Income Tax Department. Union Minister of Finance and Corporate Affairs, Nirmala Sitharaman and Minister of State for Finance and Corporate Affairs, Anurag Singh Thakur were present on the occasion.

Announcing the event, the Prime Minister's Office said in a press release that 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% to 22% and for new manufacturing units the rates were reduced to 15%. Dividend distribution Tax was also abolished," it said. 

"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 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," the PMO said. 

"Similarly, to increase the ease of compliance for taxpayers, IT Department has moved forward with prefilling of income tax returns to make compliance more convenient for individual taxpayers. Compliance norms for startups have also been simplified," it added. 

Earlier, the Income Tax Department launched “Vivad se Vishwas Act, 2020” scheme to provide for resolution of pending tax disputes under which declarations for settling disputes are being filed currently. 

"To effectively reduce taxpayer grievances / litigation, the monetary thresholds for filing of departmental appeals in various appellate Courts have been raised. Several measures have been taken to promote digital transactions and electronic modes of payment. The IT department is committed to take the initiatives forward and has also made efforts to ease compliances for taxpayers during the Covid times by extending statutory timeliness for filing returns as also releasing refunds expeditiously to increase liquidity in the hands of taxpayers," the PMO said. 

The upcoming launch of the platform for “ Transparent Taxation – Honoring the Honest “ by the Prime Minister will further carry forward the journey of direct tax reforms, it said.