PM Modi to launch ‘Transparent Taxation-Honoring the Honest’ programme on Thursday
Several initiatives have been taken in the country to bring in efficiency and transparency in the functioning of the IT Department.
Prime Minister Narendra Modi will on Thursday launch a platform for “Transparent Taxation-Honoring the Honest,” a move to push tax reforms and subsequently, encourage taxpayers to pay taxes which help in meeting the government’s spending on various developmental programmes.
Last year the Corporate Tax rates were reduced from 30 percent to 22 percent and for new manufacturing units the rates were reduced to 15 percent. Dividend distribution Tax was also abolished.
The focus of the tax reforms has been on reduction in tax rates and on simplification of direct tax laws. Several initiatives have been taken by the CBDT for bringing in efficiency and transparency in the functioning of the IT Department.
This includes bringing more transparency in official communication through the newly introduced 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 pre-filing income tax returns to make compliance more convenient for individual taxpayers. Compliance norms for startups have also been simplified.
With a view to provide for resolution of pending tax disputes the IT Department also brought out the Direct Tax “Vivad se Vishwas Act, 2020” under which declarations for settling disputes are being filed currently.
To effectively reduce taxpayer grievances and litigation, the monetary thresholds for filing of departmental appeals in various appellate Courts have been raised. Several measures have been taken to promote digital transactions and electronic modes of payment.