In a positive development for economic reforms, the Income Tax Department has simplified the income tax return-filing process, lowered taxes for the common man and launched its “Vivad Se Vishwas” scheme to expedite the resolution of pending tax disputes. The union government has also cut the corporate tax to 22 per cent from 30 per cent for existing companies, and 15 per cent for new manufacturing units and scraping of dividend distribution tax in recent times.
The Prime Minister Narendra Modi also appealed to people to voluntarily pay their taxes. “In the last 6 to 7 years, the number of people filing income tax returns has increased. But it cannot be denied that only 1.5 crore people pay taxes in a country of 130 crore. I hope and urge people who do not fall under any tax net now to come forward by themselves in this regard (to pay tax).” The appeal assumed significance in light of the decline in the government's GST collection amid the Covid-19 crisis.
In the past six years, the government has remained focused on “banking the unbanked, securing the unsecured and funding the unfunded”. “In a way, today's launch marks a new beginning in this direction.
According to the Finance Ministry the faceless appeals would involve random allotment of cases. “With electronic replies, zero physical interface of authorities & instant solutions your way, this is the newest, most convenient & easiest way to tackle your IT litigation issues.”
The “Transparent Taxation – Honoring The Honest” platform will initiate major tax reforms aimed at bringing transparency in income tax systems and empowering taxpayers, according to the government.
This is considered to be another step which will make the lives of the taxpayers easier. Over the years, the income tax department has carried out several major reforms, including reduction in the corporate tax. The department had also abolished the dividend tax.
It has also been focussing on simplification of direct tax laws and increasing transparency in communication. A major step in this regard was the introduction of 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 IT department has moved forward with the prefilling of income tax returns to make compliance more convenient for individual taxpayers. Compliance norms for startups have also been simplified.
Further, the Income Tax department has undertaken several measures to promote digital transactions and electronic modes of payment. The department is committed to take the initiatives forward and has also made efforts to ease compliances for taxpayers during Covid-19 time by extending statutory timeliness for filing returns as also releasing refunds expeditiously to increase liquidity in the hands of taxpayers.
