Will Honest be really Honored?

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“Hon’ble PM Modi launches A Platform for transparent Taxation- Honoring the Honest”

Prime Minister Narendra Modi launched the platform for 'Transparent Taxation– Honoring the Honest'. The aim is to ease compliance by making the tax system, "People-Centric & Public Friendly" & issue refunds faster to benefit honest taxpayers.

Prime Minister Mr. Modi said, “The tax system is becoming faceless. Tax payer will get the feeling of fairness and fearlessness,"

There are three main features of this platform- Faceless Assessment, Faceless Appeal and Tax payer’s Charter.

The number of taxpayers in the country is quite low at a mere 1.5 cr. As a way to celebrate honest taxpayer, from 2016 the Income Tax department is also issuing a certificate of appreciation. But, seems like that wasn't enough. Therefore, to increase tax compliance, it was needed to ease the process. And as a step closer to that 'Transparent Taxation' is launched.

What will change?

The overall working style of IT department is going to change. Currently, Tax Department had all the powers of issuing notices. But this is over now. Selection will be done only through system using Data Analytics and AI and there will be random allocation of cases to departments and assessments will be team-based i.e. Draft assessment order in one city, review in another and finalized in third city

So, a Taxpayer of Mumbai can receive IT Notice from Bangalore department, which will be reviewed in Delhi department and approved by Hyderabad department.

Are there any Exceptions?

Cases relating to Serious Frauds, Major Tax Evasion, Sensitive & Search matters, International Tax, Black Money Act and Benami Property are excluded.

No Taxpayer is Left behind

Are you are paying donations, electricity bills, purchasing Jewelry more than 1 lac, paying to Hotels above 20k, paying property tax above 20k, paying LIC of more than 50k, making rent payments above40k and not filing your returns?

Department might just knock your digital door anytime.

Nice, but is everyone on board?

As bright as it looks for the taxpayers, the Tax officials are pushing back. A letter review by Reuters indicates the officials are not completely on board due to the lack of consultation and inadequate resource to implement the changes. Tax officers told Reuters that faceless tax assessment may reduce tax collection, which in turn may raise pressure on officers to meet tax targets for the current fiscal year.

Conclusion

Faceless assessment will put a full stop to many unwanted harassments. But hoping that Faceless process turns out to be painless as well. Using technology, the government aims to make tax compliance easier.

Don't forget, Jorden & Sky is here to simplify taxes for you too.

Until then!