‘Transparent taxation’ portal- A new faceless tax system

Prime Minister Narendra Modi introduced a new platform for filing income tax returns to ensure a transparent taxation environment by eliminating the physical interface between taxpayers and authorities. The platform and taxpayer charter outlining the rights and obligations of taxpayers were launched through videoconferencing.

According to PM Modi, this effort is seamless, painless, and faceless. The initiatives include a regulation that restricts the powers of daily assessment officers to perform surveys, restricting those powers to the inquiry and tax deducted at source wing only after authorization from a senior official of the rank of director-general or chief commissioner. Mr. Modi Said that the new platform also seeks to increase the trust of the taxpayer and make him or her fearless. The Faceless Appeal — It allows the taxpayer to make any claims to authorities without any personal interactions. The next phase after the faceless assessment begins from September 25.

The Finance Minister Nirmala Sitharaman Said, taxpayers can respond to the scrutiny notice online with the help of dynamic jurisdiction and team-based assessment and it enables speedy completion of the cases. Notices, if any, will only be issued through the centralized computer system, and taxpayers will be able to respond to them electronically without having to visit a tax office or meet any official. Also, most evaluation orders will have to be issued by the National E-Assessment Centre under the 2019 Faceless Assessment Scheme. The prime minister said that this would end the “jaan pehchan” period to get attention or resolve notices.

The proposal has been welcomed by business leaders and analysts, saying it will reduce grey areas, remove uncertainty, and foster accountability and certainty. The move would enable India to become a competitive economy amidst of an evolving global order by enhancing business convenience while instilling trust in the Indian industry.

Mr. Uday Kotak, President of Industry Body CII said that the government is making legislation more people-centric and public-oriented. Several other experts also responded positively. India is committed to improving the ease of doing business as well as the cost of doing business.

According to Taxpayers’ Charter, taxpayers should be entitled to choose their representatives, lodge grievances, and pursue timely resolution of issues. In exchange, they must keep correct records, report the details needed, and pay taxes on time. The Charter outlines citizen rights and responsibilities.

The CBDT Thursday amended the 2019 e-assessment scheme to carry out faceless assessments under which the National e-assessment center’s in-charge may refer the case to the jurisdictional evaluation officer at any stage of the assessment, with prior board approval. The in-charge may set out situations where the personal hearing would be permitted, to be told separately.

(This article was originally published Passionate in Finance.)

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