A new Tax Reforms has been introduced called Faceless Assessment, Transparent Taxation launched by CBDT (Central Board of Direct Taxation). It is beneficial for the entrepreneur and ease the compliance burden of taxpayers and reward honest taxpayers by Faceless, seamless, and painless. Also, it provides a transparent system by digital transactions and electronic modes of payment.
Introduction of New Tax Reforms
We all know that the tax system needs structural reform because as we have heard about the past situation where the taxpayers did not disclose their all kind of income. It is one of the main problems for not filing an income tax return fairly. moreover, Government has introduced new tax reforms like taxpayers’ charter, faceless assessment, faceless appeal, and transparent taxation which are the next phases of direct tax reforms. Hence, It will easy for the taxpayer’s compliance and rewarding honest taxpayers as the government seems to rebuild the pandemic-hit economy.
Let us understand the new reforms in details:-
Taxpayer Charter
Basically, Taxpayers Charter is for establishing trust between the taxpayer and the income tax department. The Taxpayers Charter defines a taxpayer’s rights and obligations under the law. It creates the department’s commitment to providing services to the taxpayers. The Charter is a step in bringing in clarity in the tax services from the department and tax compliance by a taxpayer.
The charter depends on the various conditions such as
- Identify the fundamental rights of taxpayers and the basic standards of services.
- Also, Ensure all the data submitted to tax authorities will be confidential.
E-Assessments
When we are talking about the past situation where the taxpayers did not disclose their all kind of income in income tax return filing. Income tax assessments picked by tax officials and the income of the taxpayer is assessed manually.
Taxpayers required to furnish documents and information in the form of hardcopy at income tax offices for the purpose of assessment. This process consumes too much time of taxpayers and tax officials. Now, income tax assessments shall be conducted digitally through the electronic portal and email communication only.
- Faceless assessment eliminates the need for the physical interface.
- Likely, removed corruption practices.
- Increase fairness and objectivity in the tax system.
Transparent Taxation
- The new facilities launched are a part of the Government’s resolve to give maximum governance.
- Also, it should be noted that more transparency in official communication encouraged through the newly founded Document Identification Number (DIN).
- DIN is a computer-generated unique document identification number.
- Tax officials shall use unique DIN for each communication with taxpayers.
- However, Communication is invalid if DIN not available.
Faceless Income Tax Appeal
On tax assessment made by tax officials, taxpayers may or may not satisfied with the raised tax demands and penalties. The taxpayer has rights to file an appeal within 30 days of the assessment order. However, the taxpayer or his representative (Advocate or Chartered Accountant) has o represent before the commissioner of Income-tax (Appeal) for the hearing. Now there is a major new tax reform which allows the taxpayer to process a faceless appeal without physical interaction.
Precisely, Faceless appeal means to remove the human interface between the taxpayer and the Income Tax (I-T) Department.
This faceless income tax appeal reform introduced by the government shall enhance the environment of transparent taxation.
According to PM Modi Ji appeal, the main aim to give greater efficiency, transparency, and accountability to the taxpayers. It will help in easy compliance burden of taxpayers and increase fairness and objectivity in the tax system.
Income Tax Return Filing (ITR) date extended -Check New Updates
However, If you need any support regarding obtaining the Income Tax Return Filing, please feel free to call our business advisors at 8881-069-069.
Download E-Startup Mobile App and Never miss the latest updates related to your business.