Whenever PM Narendra Modi comes live, people in India are eagerly waiting for what he’s about to say. Well, with bated breath, to say the least! This time was no different. The Transparent Taxpayers Charter 2020 unveiled by him caters to the duties and rights of an honest taxpayer. He declared that this was the start of the new generation 21st century tax methods or Transparant Taxation. Unique preferences would be given to the country’s hardworking, honest taxpayers with this Taxpayers Charter. He even came up with a hashtag: #HonoringTheHonest. Shoutout to his media team!
As of now, the official statement is “Today’s decisions towards a simpler and transparent tax system are a part of our efforts to make the system people-centric and public friendly as opposed to being heavily power-centric.” Some of the points have already come into action, while others will be implemented in a phased manner by 25 September. The tax-officers will be committed to a 14-point charter, while the taxpayers themselves should be committed to 6 points, all of which have been released by the PMO. Read to know more about what has been released!
Different aspects of this Taxpayers Charter 2020
What should the Taxpayers expect from the Income Tax(IT) Department?
So, all of us have faced different problems regarding our taxes at some point in our lives, haven’t we? Whether it be technical glitches or just sheer corruption in place. However, Prime Minister Narendra Modi’s latest announcements are all set to change it all. Here are the guidelines that have been set for the tax officers from the Ministry of Finance:
— NSitharamanOffice (@nsitharamanoffc) August 13, 2020
The above points are pretty transparent and self-explanatory. However, let us give you a summary of what you can expect!
- No more running around from one office to another trying to ensure our taxes are explicit. The Income Tax Department should be providing prompt and time-efficient services to every single taxpayer of India.
- There have been certain speculations regarding what will be considered as honest. Well, this isn’t a classroom where the teacher knows who’s lying and who isn’t. 1.3 billion is no joke! However, the Taxpayers Charter 2020 has made things clear that the Department would be treating everyone equally. Everyone is an honest taxpayer unless there a specific reason to believe otherwise.
- Most MNC and top corporates have this policy which says “Check yourself before pointing fingers”. The public sector is also slowly shifting to such enhanced work ethics. Today’s charter clearly states that it will hold its authorities accountable for whatever disruption that happens.
- There have been quite a few scandals regarding the leaking of information of the citizen online. However, this time, the PMO has promised to maintain a strict confidentiality policy, where no data will leave the Department unless authorized by the Law.
- And last but not least, we would like to focus on was that gone are the days when something goes wrong, the taxpayer is completely clueless regarding what to do! The Department will pay particular attention as to how to deal with customer complaints, as well as ensure that the cost of compliance is low.
So, some of you might be wondering what this cost of compliance is? In general, compliance cost refers to the expenses that a company uses up to adhere to government regulations. So, in this reference, the Govt. has related to the amount a taxpayer has to pay additional while administering their taxes.
What would the IT Department expect from the Taxpayers?
Here are the 6 points that the Government would be expecting from us:
- Taxpayers are expected to be honest and be completely transparent about their earnings and its source. Well, demonetization failed to solve this, let’s see if this can!
- Although employees would be expected to be responsible for their blunders, taxpayers are also expected to have an idea regarding their tax obligations. You can’t be stuck in a massive money laundering and start blaming the Govt!
- The IT department would be expecting that every taxpayer keeps a clear-cut record of their earning and spending, as per the IT Regulations.
- The honest taxpayer is also expected to be a responsible citizen and keep a record of what the authorized representatives are doing on his/her behalf. Don’t follow anything blindly. Ask questions!
- The last two points of this list kind of cater to the same fundamentals. Since the Govt is focusing on time-efficiency from their side, the taxpayers themselves are expected to be prompt and punctual. Basically, pay your taxes on time!
Finance Minister Nirmala Sitharaman has set high hopes regarding the Taxpayers Charter 2020. Let’s see what the world’s largest democracy has to say! We’ve attached the entire speech in case you want to hear the whole thing yourself. Do check it out.
For more info regarding this, here are the links to the relevant Twitter accounts:
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