New Income Tax System: DECODED! Major overhaul! What is faceless assessment? How it works? What are its benefits?
Here is all you need to know about 'Transparent Taxation - Honouring The Honest Platform' - faceless income tax assessment system:-
It is a major overhaul of tax administration! Prime Minister Narendra Modi on Thursday unveiled faceless tax assessment and appealed to reduce the scope for corruption and overreach by officials, and said a taxpayers' charter is being implemented to ensure a free, fair and transparent tax environment. Here is all you need to know about 'Transparent Taxation - Honouring The Honest Platform' - faceless income tax assessment system:-
NEXT PHASE OF TAX REFORMS
- The taxpayers' charter and faceless assessment are the next phases of direct tax reforms aimed at easing compliance and rewarding honest taxpayers as the government looks to rebuild the pandemic-hit economy
NO VISIT TO OFFICE
- While, faceless assessment that does not require the taxpayer to visit any office or meet any official, and taxpayers' charter will be implemented from Thursday, the faceless appeal will come into force from September 25.
COMPUTER TO PICK RETURNS
- Till now the tax office in the city of residence was handling the scrutiny, appeal, and notices of an individual taxpayer. Now, a central computer will pick up tax returns for scrutiny based on risk parameters and mismatches and then will allot them randomly to a team of officers in any city. The scrutiny by these officers will be reviewed by officers at another randomly selected location
- Notices, if any, will be sent only by centralised computer system, and taxpayer can respond to them electronically without the requirement of visiting a tax office or meeting any official
-Three main features of the platform unveiled on Thursday are faceless assessment, faceless appeal, and taxpayers' charter, he said adding the focus is on making the tax system "people-centric and public friendly."
-Four factors for changes in the taxation system are due to policy-driven governance, belief in people's honesty, the use of advanced technology, and efficiency in the bureaucracy, according to Modi
- The income tax department has simplified compliance norms for startups and has moved forward with the pre-filling of income tax returns to make compliance more convenient for individual taxpayers. 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.
'Transparent Taxation - Honouring The Honest Platform': What PM Narendra Modi said
Launching the 'Transparent Taxation - Honouring The Honest Platform' through video conferencing, he said the taxpayer base at just 1.5 crore in India is very low and urged those who owe taxes to come forward and honestly pay their dues and contribute to nation-building. "The tax system may be turning faceless but it promises fairness and fearlessness for taxpayers," he said . Modi said this will end the era of "jaan pehchan" (acquaintance) to get scrutiny or notices settled.
The Prime Minister said taxpayers' charter provides for fair, courteous, and reasonable treatment while treating taxpayers as honest. It expects taxpayers to be honest and compliant and pay taxes in time. While the number of people filing income tax returns has increased by about 2.5 crore in the past few years, actual taxpayers at just 1.5 crore out of a population of 130 crore "is very very less," he said
"Those who are capable must voluntarily come forward and pay their dues and contribute to the development of the nation," he said . Modi said, economic reforms in the past were done under compulsions or pressure which did not yield desired results. "For us reforms mean reforms based on policy, reforms that are holistic and not piecemeal and one reform forming the base for other," he said. "Reform is a continuous process."
The tax system needed fundamental and structural reform because it was brought in when India was under colonial rule, he said. "Compliance becomes difficult where there is complexity," he said adding laws should be less in number and should make taxpayers happy.
Reacting to the announcement, Anshuman Magazine, Chairman & CEO - India, South East Asia, Middle East & Africa, CBRE, said, "The launch of a transparent taxation platform by Prime Minister Narendra Modi is a positive step by the government to strengthen our economy. This further simplified platform will make the process of paying the tax and filing for the return easier and more transparent. This will also ensure that more people join the taxation process willingly and contribute their bit towards nation building. Government’s commitment towards easing compliances through extension of statutory timeliness for filing returns and releasing refunds has already uplifted the taxpayers’ sentiment in the past. The new tax regime will also bring the confidence of investors back into the system and we hope that it will play a crucial role in bringing the economy back on its path to recovery.”
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.