Platform for Transparent Taxation – Honouring the Honest – All India Radio (AIR) IAS UPSC

  • IASbaba
  • August 22, 2020
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All India Radio
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Platform for Transparent Taxation – Honouring the Honest

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Topic: General Studies 2:

  • Mechanisms, laws, institutions and Bodies constituted for the protection and betterment of people 

In news:

  • “Transparent Taxation — Honouring the Honest” platform was launched recently.
  • The platform provides faceless assessment, faceless appeal and a taxpayers’ charter.
  • Aimed at easing the tax compliance and also rewarding honest taxpayers in the midst of coronavirus (COVID-19) pandemic which has severely hit the Indian economy because of the rising number of cases and the lockdowns.
  • The platform will add strength to the government’s efforts of reforming and simplifying the tax system.

Faceless Assessment:

  • Under faceless assessment, the scrutiny of returns of a taxpayer will be done by a tax officer selected at random and not necessarily from the same jurisdiction. 
  • This will do away the need for any face-to-face contact between the taxpayer and tax official, thereby reducing the chances of coercion and rent-seeking. 
  • The move is expected to ease the compliance burden for assessees and reward the “honest taxpayer”, who plays a big role in nation-building. 
  • A faceless tax system would give the taxpayer confidence on fairness and fearlessness. 
  • It helps to maintain the privacy and confidentiality of income taxpayers.
  • The assessment system seeks to eliminate corrupt practices by doing away with the territorial jurisdiction of income-tax offices.

Faceless appeal facility:

  • This facility would be available to all citizens from September 25 (Deen Dayal Upadhyaya’s birth anniversary)
  • A faceless appeal system would allow the taxpayer to appeal against a tax official’s decision without the need of making a physical representation.

Taxpayers’ charter

  • The taxpayers’ charter was announced in the Union Budget for fiscal year 2020-21 by the Finance Minister. 
  • The charter outlines the rights and duties of an honest taxpayer. 
  • It also defines the commitment of the tax department and the expectations from the taxpayers.
  • It is a step towards bringing together rights and duties of the taxpayer and fixing the government’s responsibilities towards the taxpayer

Do you know?

  • All these above reforms are likely to empower citizens by ensuring time-bound services by the Income Tax Department.
  • PM appealed to those not paying taxes, despite having the ability, to come forward and commit themselves to the cause of making the country self-reliant.

Connecting the Dots:

  1. Critically examine the ‘Transparent Taxation – Honouring the Honest’ scheme.
  2. Fundamental reforms were needed in the tax system of India. Comment.

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