News | Tax

Tax Reform is on Its Way

With the budget set to be announced in a few days the Indian government has set the ball rolling for reforms that could reset taxpayer - income tax department relationship.
 
A high-level direct tax panel has been set up by the government to firm up the intrinsic modalities for faceless income tax assessment which will help minimizing corruption while shoring up the direct tax revenue for the government. 
 
An internal task force of the central board of direct taxes first came up with the suggestion of a jurisdiction free and faceless assessments. The idea now finds itself changing the Indian taxation system.
 
Technology would allow the taxpayer and assessing officer to not know of the others identity which would allow the reduction of corruption and increased speed of processing. Infact, The department already carries out faceless processing and issuance of refunds via the processing centre in Bangalore.
 
July 31st is the proposed deadline for the task force to submit its report. The move has been given high priority by the Modi government keeping in line with its taxpayer friendly agenda. 
 
The task force will look at a mechanism for system-based verification of financial transactions. 
 
The task force has also been asked to look at ways to cut down compliance burden of taxpayers, reduction in litigation the official said besides sharing of information on various taxes such as goods and services tax, customs and financial intelligence unit. 
 
Akshilesh Ranjan , member in the CBDT who is the convener of the task force will now have Ritvik Pnadey, joint secretary in the department of revenue as a member. Arun Jaitely had extended the tenure of the task force in May by two months. 
 
The finance ministry had as back as 2017 had set up a task force to reform the Income Tax code along the lines of international best practices as well as taxation system of other developed countries while keeping in mind the local Indian interest as well. 

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