PM Modi
PM Modi
ANI Photo

Mumbai: Prime Minister Narendra Modi today (Thursday) at 11 am will launch the platform for “Transparent Taxation - Honoring The Honest” via video conferencing. The launch will initiate major tax reforms aimed at bringing transparency in tax systems and empowering taxpayers.

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Background: The Income Tax Department has carried out several major tax reforms in recent years. Last year the Corporate tax rates were reduced from 30 per cent to 22 per cent and for new manufacturing units the rate were reduced to 15 per cent. Dividend distribution Tax was also abolished.

Not only has the focus been on reduction in tax rates but also on simplification of direct tax laws. Several initiatives have been taken by the Income Tax Department 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.

Similarly, to increase the ease of compliance for taxpayers, the Income Tax 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.

With a view to provide for resolution of pending tax disputes the Income Tax Department also brought out the Direct Tax Vivad se Vishwas Act, 2020 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.

Income Tax Department has also undertaken several measures 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 Centre hopes that today’s launch on Tax Reforms by the Prime Minister will further carry forward the journey of direct tax reforms.

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Free Press Journal