Prime Minister Shri Narendra Modi has launched the platform for ‘Transparent Taxation’ on 13th August 2020 to ease compliance and benefit for taxpayers.
Key Highlights
- Faceless assessment, Faceless appeal. Faceless appeal will be applicable from 25th September 2020.
- Taxpayers can avail the new income tax regime from this financial year onwards and enjoy the benefits of relatively less documentation and greater ease of compliance increased liquidity in the hands of the taxpayer, and flexibility of investment choices.
- The emphasis is on making every rule-law, policy people-centric and public friendly. This is the use of the new governance model and the country is getting its results.
- Right now, the tax department of the city we live in handles everything. Now this is over. With technology, matters of scrutiny will be assigned to IT department officials randomly. The computer will decide it. This will keep changing constantly.
- Apart from issues related to taxation, appeals will also be faceless. The taxpayer charter is an important step in India’s development.
- The department is helping taxpayers to be able to understand how to fill pre-filled tax forms. The new platform aims to ease compliance burden, fair objective fair system.
- New arrangements and new facilities starting today, strengthens commitment towards ‘Minimum Government, Maximum Governance’. This is a big step in the direction of reducing interference of the government in the life of the countrymen:
CBDT HAS CARRIED OUT SEVERAL MAJOR TAX REFORMS IN DIRECT TAXES IN THE RECENT YEARS, THE STATEMENT POINTED OUT.
- Last year, 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.
- To increase the ease of compliance for taxpayers, the 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.
- For resolution of pending tax disputes, the IT Department also brought out the Direct Tax “Vivad se Vishwas Act, 2020”,
- To effectively reduce taxpayer grievances and litigation, the monetary thresholds for filing of departmental appeals in various appellate courts have been raised.
- The IT Department has also made efforts to ease compliances for taxpayers during the COVID-19 pandemic by extending statutory timeliness for filing returns, as also releasing refunds expeditiously to increase liquidity in the hands of taxpayers.
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