PM Modi inaugurates Transparent Taxation; pushes for tax reforms

Faceless assessment and taxpayers charter will be available from today

Prime Minister Narendra Modi addresses the 25th Foundation Day of the Rajiv Gandhi University of Health Sciences at Bengaluru via video conferencing | PTI Prime Minister Narendra Modi | PTI

Prime Minister Narendra Modi on Thursday launched 'Transparent Taxation – Honoring the Honest', a platform aimed at simplifying the tax system in the country. "With the launch of the platform, India has today ushered in the era of faceless assessment, faceless appeal and taxpayers charter," Modi said as he unveiled the dashboard. 

The facility of faceless appeal will be available for citizens across the country from September 25—on the birth anniversary of Deen Dayal Upadhyay, the prime minister said. The honest taxpayer of the country plays a huge role in nation building. "The new arrangements and facilities, starting today, will strengthen our commitment to minimum government, maximum governance," Modi added. 

This is a big step in the direction of reducing the interference of the government from the life of the countrymen, said the prime minister. "Today, every rule-law, every policy is taken out of the process with a power-centric approach. The emphasis is on making it people-centric and public friendly," he said. 

Referring to the launch of Taxpayers Charter, Modi said that it is a significant step where the taxpayer is now assured of fair, courteous and rational behaviour. He said the charter takes care of maintaining the dignity and sensitivity of the taxpayer and that is based on a trust factor and that the assessee cannot be merely doubted without a basis.

The launch of the platform is expected to further carry forward the journey of direct tax reforms undertaken during the last six years. The reforms include reduction in corporate tax last year to 22 per cent from 30 per cent for existing companies and 15 per cent for new manufacturing units, scraping of dividend distribution tax and faceless assessment.

The Budget for 2020-21 fiscal unveiled on February 1, had announced a 'taxpayer charter', which is expected to have statutory status and will empower citizens by ensuring time-bound services by the Income Tax department. Taking forward the faceless assessment process, the Budget also proposed to bring about "faceless appeal". Currently, most of the functions of the Income Tax Department starting from the filing of the return, processing of returns, issuance of refunds, and assessment are performed in the electronic mode without any human interface.

Modi also said there has been reduction in the scrutiny of the cases by at least four times in the last six years from 0.94 per cent in 2012-13 to 0.26 per cent in 2018-19. “This is a reflection of the trust that the government is laying on the returnees. In the last 6 years, India has seen a new model of governance evolving in tax administration. Amidst all these efforts, he said the number of people filing income tax returns has increased by about 2.5 crores in the last 6-7 years.” Income Tax returns (ITRs) picked up for scrutiny has reduced to 0.26 per cent of the total ITRs filed in Assessment Year (AY) 2018-19, from 0.55 per cent in AY 2017-18. The number was 0.71 per cent in AY 2015-16 and 0.40 per cent in AY 2016-17.

The prime minister, however, pointed out that only 1.5 crore people pay the taxes in a country of 130 crore. Modi urged people to introspect themselves and come forward to pay the taxes due.

He said that the latest laws reduced the legal burden in the tax system where now the limit of filing cases in the High Court has been fixed at up to Rs 1 crore and up to Rs 2 crore for filing in the Supreme Court. Initiatives like the 'Vivaad Se Vishwas' scheme pave the way for most of the cases to be settled out of court.

Modi also said that the tax slabs have also been rationalised as part of the ongoing reforms where there is zero tax up to an income of Rs 5 lakh, while the tax rate has reduced in the remaining slabs, too. He said India is one of the countries with the lowest corporate tax in the world.

(With inputs from Pratul Sharma)

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