To reward honest taxpayers, PM Modi to launch new, ‘transparent’ scheme tomorrow2 min read . Updated: 12 Aug 2020, 10:25 AM IST
- Prime Minister Narendra Modi to launch the platform for 'Transparent Taxation – Honoring the Honest'
- The launch of the platform will further carry forward the journey of direct tax reforms
Ahead of Independence Day, Prime Minister Narendra Modi will launch a new tax scheme tomorrow. The platform “Transparent Taxation – Honoring the Honest" will be launched by PM Modi via video-conferencing tomorrow.
The event will be witnessed by various Chambers of Commerce, Trade Associations, Chartered Accountants' associations and also eminent taxpayers, apart from the officers and officials of Income Tax Department. Union Minister of Finance and Corporate Affairs, Shrimati Nirmala Sitharaman and Minister of State for Finance and Corporate Affairs, Shri Anurag Singh Thakur will also present on the occasion.
Earlier, Finance Minister Nirmala Sitharaman said taxpayers are nation-builders and the government would come out with a charter of rights for them.
Sitharaman emphasised that Prime Minister Narendra Modi addresses taxpayers as 'nation-builders' and an honest taxpayer helps build this country.
PM Modi had thanked honest tax payers who have helped finance the free food grain scheme, a major humanitarian effort in dealing with the coronavirus crisis. He had said if the government has been able to give free food grain to the needy, its credit goes to two classes of people -- farmers and honest tax payers.
Here is all you need to know about tax reforms:
- The launch of the platform will further carry forward the journey of direct tax reforms.
- The CBDT has carried out several major tax reforms in direct taxes in the recent years. 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 theIT 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, IT Department has moved forward with prefilling of 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 / 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. The IT department is committed to take the initiatives forward and has also made efforts to ease compliances for taxpayers during the Covid times by extending statutory timeliness for filing returns as also releasing refunds expeditiously to increase liquidity in the hands of taxpayers.