{"id":12227,"date":"2020-08-13T17:39:48","date_gmt":"2020-08-13T12:09:48","guid":{"rendered":"https:\/\/swaritadvisors.com\/learning\/?p=12227"},"modified":"2020-08-13T17:39:53","modified_gmt":"2020-08-13T12:09:53","slug":"transparent-taxation","status":"publish","type":"post","link":"https:\/\/swaritadvisors.com\/learning\/transparent-taxation\/","title":{"rendered":"Transparent Taxation: PM Decides to Honor Honest Taxpayer"},"content":{"rendered":"\n<p style=\"text-align:center\"><em><strong>\u201cMinimum Government and Maximum Governance\u201d<\/strong><\/em><\/p>\n\n\n\n<p class=\"has-drop-cap\">The term \u201c<strong><em>Transparent Taxation<\/em><\/strong>\u201d denotes a <strong><em>new tech-driven taxpaying platform<\/em><\/strong> unveiled by our Hon\u2019ble <strong><em>Prime Minister<\/em><\/strong>, <strong><em>Mr. Narendra Modi<\/em><\/strong>, on <strong><em>13.08.2020<\/em><\/strong>, through <strong><em>video conferencing<\/em><\/strong> at <strong><em>11 am<\/em><\/strong> in <strong><em>New Delhi<\/em><\/strong>. The <strong><em>full name<\/em><\/strong> of this online platform is \u201c <strong><em>Transparent Taxation : Honoring the Honest<\/em><\/strong>\u201d<a href=\"https:\/\/pib.gov.in\/PressReleasePage.aspx?PRID=1645243\">[1]<\/a> . <\/p>\n\n\n\n<p>The main aim of this platform is to <strong><em>infuse\ntransparency<\/em><\/strong>, <strong><em>empower taxpayers<\/em><\/strong>, <strong><em>minimize\ngovernment intervention<\/em><\/strong>, <strong><em>reduce human interface<\/em><\/strong> in the Indian\nTax Regime. That means it will work to <strong><em>benefit <\/em><\/strong>the <strong><em>honest taxpayers<\/em><\/strong>, whose <strong><em>hard\nearned money<\/em><\/strong> stimulates <strong><em>National Progress<\/em><\/strong>.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a54d80cd9c8d\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a54d80cd9c8d\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/swaritadvisors.com\/learning\/transparent-taxation\/#Key_Features_of_Transparent_Taxation\" title=\"Key Features of Transparent Taxation\">Key Features of Transparent Taxation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/swaritadvisors.com\/learning\/transparent-taxation\/#Need_for_Reforms\" title=\"Need for Reforms\">Need for Reforms<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/swaritadvisors.com\/learning\/transparent-taxation\/#Concept_of_Faceless_Assessment\" title=\"Concept of Faceless Assessment \">Concept of Faceless Assessment <\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/swaritadvisors.com\/learning\/transparent-taxation\/#Features_of_Faceless_Assessment_Mechanism\" title=\"Features of Faceless Assessment Mechanism\">Features of Faceless Assessment Mechanism<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/swaritadvisors.com\/learning\/transparent-taxation\/#Exceptions_of_Faceless_Assessment\" title=\"Exceptions of\nFaceless Assessment\">Exceptions of\nFaceless Assessment<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/swaritadvisors.com\/learning\/transparent-taxation\/#Concept_of_Faceless_Appeals\" title=\"Concept of Faceless Appeals\">Concept of Faceless Appeals<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/swaritadvisors.com\/learning\/transparent-taxation\/#Features_of_Faceless_Appeals_Scheme\" title=\"Features of Faceless Appeals Scheme\">Features of Faceless Appeals Scheme<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/swaritadvisors.com\/learning\/transparent-taxation\/#Exceptions_of_Faceless_Appeals\" title=\"Exceptions of\nFaceless Appeals\">Exceptions of\nFaceless Appeals<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/swaritadvisors.com\/learning\/transparent-taxation\/#Concept_of_Tax_Payers_Charter\" title=\"Concept of Tax Payer\u2019s Charter\">Concept of Tax Payer\u2019s Charter<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/swaritadvisors.com\/learning\/transparent-taxation\/#Governments_Commitment_towards_Taxpayers\" title=\"Government\u2019s Commitment towards Taxpayers \">Government\u2019s Commitment towards Taxpayers <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/swaritadvisors.com\/learning\/transparent-taxation\/#Obligations_of_Taxpayers_under_Charter\" title=\"Obligations of Taxpayers under Charter\">Obligations of Taxpayers under Charter<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/swaritadvisors.com\/learning\/transparent-taxation\/#Impact_of_Continuous_Tax_Reforms_in_India\" title=\"Impact of Continuous\nTax Reforms in India\">Impact of Continuous\nTax Reforms in India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/swaritadvisors.com\/learning\/transparent-taxation\/#Other_Major_Reforms_Taken_By_the_Government\" title=\"Other Major Reforms Taken By the Government\">Other Major Reforms Taken By the Government<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/swaritadvisors.com\/learning\/transparent-taxation\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Key_Features_of_Transparent_Taxation\"><\/span>Key Features of Transparent Taxation<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/swaritadvisors.com\/learning\/wp-content\/uploads\/2020\/08\/Key-Features-of-Transparent-Taxation-1024x768.png\" alt=\"Features of Transparent Taxation\" class=\"wp-image-12229\" width=\"471\" height=\"353\" srcset=\"https:\/\/swaritadvisors.com\/learning\/wp-content\/uploads\/2020\/08\/Key-Features-of-Transparent-Taxation-1024x768.png 1024w, https:\/\/swaritadvisors.com\/learning\/wp-content\/uploads\/2020\/08\/Key-Features-of-Transparent-Taxation-300x225.png 300w, https:\/\/swaritadvisors.com\/learning\/wp-content\/uploads\/2020\/08\/Key-Features-of-Transparent-Taxation-768x576.png 768w, https:\/\/swaritadvisors.com\/learning\/wp-content\/uploads\/2020\/08\/Key-Features-of-Transparent-Taxation.png 1200w\" sizes=\"(max-width: 471px) 100vw, 471px\" \/><\/figure><\/div>\n\n\n\n<p>The <strong><em>main features<\/em><\/strong> of this <strong><em>technology-driven\nplatform<\/em><\/strong> are as follows:<\/p>\n\n\n\n<ol><li>Faceless\nAssessment;<\/li><li>Faceless Appeal;<\/li><li>Tax Payer\u2019s\nCharter;<\/li><\/ol>\n\n\n\n<p>Further, <strong><em>Mr. Narendra Modi<\/em><\/strong><a href=\"https:\/\/twitter.com\/narendramodi\">[2]<\/a> , stated that both <strong><em>Faceless Assessment<\/em><\/strong> and <strong><em>Tax Payer\u2019s Charter<\/em><\/strong> will come into force from <strong><em>today<\/em><\/strong> onwards, i.e., <strong><em>13.08.2020<\/em><\/strong>. However, the reform of <strong><em>Faceless Appeal<\/em><\/strong> will be going live from <strong><em>25.09.2020<\/em><\/strong>, i.e., on the <strong><em>birth date<\/em><\/strong> of <strong><em>Pt.<\/em><\/strong> <strong><em>Din Dayal Upadhaya<\/em><\/strong>. <\/p>\n\n\n\n<p>He also stated that this <strong><em>mechanism<\/em><\/strong> would make the\nIndian Tax Regime \u201c<strong><em>People Oriented<\/em><\/strong>\u201d and \u201c<strong><em>Public Friendly<\/em><\/strong>\u201d from \u201c<strong><em>Process\nand Power Centric<\/em><\/strong>\u201d.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Need_for_Reforms\"><\/span>Need for Reforms<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/swaritadvisors.com\/learning\/wp-content\/uploads\/2020\/08\/Need-for-Reforms-1024x768.png\" alt=\"Need for Reforms tax system\" class=\"wp-image-12231\" width=\"443\" height=\"332\" srcset=\"https:\/\/swaritadvisors.com\/learning\/wp-content\/uploads\/2020\/08\/Need-for-Reforms-1024x768.png 1024w, https:\/\/swaritadvisors.com\/learning\/wp-content\/uploads\/2020\/08\/Need-for-Reforms-300x225.png 300w, https:\/\/swaritadvisors.com\/learning\/wp-content\/uploads\/2020\/08\/Need-for-Reforms-768x576.png 768w, https:\/\/swaritadvisors.com\/learning\/wp-content\/uploads\/2020\/08\/Need-for-Reforms.png 1200w\" sizes=\"(max-width: 443px) 100vw, 443px\" \/><\/figure><\/div>\n\n\n\n<p>By <strong><em>implementing<\/em><\/strong> a <strong><em>new platform<\/em><\/strong> for <strong><em>paying\ntaxes<\/em><\/strong>, the government <strong><em>aims<\/em><\/strong> to make the <strong><em>tax\nmechanism<\/em><\/strong> <strong><em>seamless<\/em><\/strong>, <strong><em>painless<\/em><\/strong>, and <strong><em>faceless<\/em><\/strong>. However, the\nmain <strong><em>reasons<\/em><\/strong>\nfor <strong><em>bringing<\/em><\/strong>\nsuch <strong><em>reforms<\/em><\/strong>\nare as follows:<\/p>\n\n\n\n<ol><li>Policy-driven\nGovernance;<\/li><li>Belief in normal people&#8217;s\nhonesty;<\/li><li>Use of Advanced Technology;<\/li><li>Increase efficiency in Bureaucracy;<\/li><\/ol>\n\n\n\n<p>Further, our <strong><em>Hon\u2019ble Prime Minister<\/em><\/strong> stated that\nin the <strong><em>last few years,<\/em><\/strong> the <strong><em>present government<\/em><\/strong> has <strong><em>focused<\/em><\/strong>\non the following aspects, which has also resulted in the formation of this <strong><em>tech-driven\nrobust tax mechanism<\/em><\/strong>:<\/p>\n\n\n\n<ol><li>Banking the\nUnbank;<\/li><li>Securing the\nUnsecured; and <\/li><li>Funding the\nUnfunded;<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Concept_of_Faceless_Assessment\"><\/span>Concept of Faceless Assessment <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The term \u201c<strong><em>Faceless Assessment<\/em><\/strong>\u201d denotes a <strong><em>major\nreform<\/em><\/strong> undertaken by the <strong><em>Government<\/em><\/strong> that <strong><em>aims<\/em><\/strong> to <strong><em>eliminate<\/em><\/strong>\n<strong><em>human\ninterface<\/em><\/strong> between the <strong><em>Income Tax Department<\/em><\/strong> and <strong><em>Taxpayer<\/em><\/strong>.<\/p>\n\n\n\n<p>Under this scheme, the <strong><em>selection of taxpayers<\/em><\/strong> is\npossible <strong><em>only<\/em><\/strong> through <strong><em>systems<\/em><\/strong> using Data <strong><em>Analytics<\/em><\/strong>\nand <strong><em>Artificial\nIntelligence<\/em><\/strong>. That means it <strong><em>eradicates<\/em><\/strong> the concept of \u201c<strong><em>Territorial\nJurisdiction<\/em><\/strong>\u201d. <\/p>\n\n\n\n<p>Further, in this <strong><em>mechanism<\/em><\/strong>, a <strong><em>taxpayer<\/em><\/strong>\nwill <strong><em>belong<\/em><\/strong>\nto a <strong><em>specific\ncity,<\/em><\/strong> but the <strong><em>order<\/em><\/strong> for his\/her <strong><em>tax<\/em><\/strong>\n<strong><em>assessment<\/em><\/strong>,\n<strong><em>review<\/em><\/strong>,\nand <strong><em>case\nfinalization<\/em><\/strong> will <strong><em>take place<\/em><\/strong> in <strong><em>another city<\/em><\/strong>. That means\nthere is <strong><em>no need<\/em><\/strong> for him\/her to <strong><em>visit income tax officials<\/em><\/strong>, as the\ncase will be <strong><em>allotted on a random basis<\/em><\/strong>.<\/p>\n\n\n\n<p><strong><em>For example<\/em><\/strong>,\na <strong><em>taxpayer<\/em><\/strong>\n<strong><em>resides<\/em><\/strong>\nin <strong><em>Ghaziabad<\/em><\/strong>,\nbut his\/her <strong><em>Assessment<\/em><\/strong> might take place in <strong><em>Cochin<\/em><\/strong>, <strong><em>Review<\/em><\/strong>\nin <strong><em>Ahmedabad<\/em><\/strong>,\nand <strong><em>Case\nFinalization<\/em><\/strong> in <strong><em>Kolkata<\/em><\/strong>.<\/p>\n\n\n\n<p>Moreover, <strong><em>any assessment<\/em><\/strong> done <strong><em>outside<\/em><\/strong>\nthe <strong><em>ambit<\/em><\/strong>\nof <strong><em>Faceless\nAssessment<\/em><\/strong> will be <strong><em>deemed invalid<\/em><\/strong>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Features_of_Faceless_Assessment_Mechanism\"><\/span>Features of Faceless Assessment Mechanism<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The <strong><em>key features<\/em><\/strong> of the <strong><em>faceless\nassessment<\/em><\/strong> mechanism are as follows:<\/p>\n\n\n\n<ol><li>Selection of\nTaxpayer through a system using Artificial Intelligence (AI) and Data\nAnalytics;<\/li><li>Eradication of\nTerritorial Jurisdiction;<\/li><li>Allotment of\nCases on Random Basis;<\/li><li>Central Issuance\nof Assessment Notice with DIN (Documentation Identification Number);<\/li><li>No Physical\nHuman Interface;<\/li><li>No need to Visit\nIncome Tax Officials;<\/li><li>Team-Based\nAssessment and Review;<\/li><li>Draft of\nassessment order will take place in one city, review in the second city, and\nlastly, finalization in the third city.<\/li><\/ol>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Exceptions_of_Faceless_Assessment\"><\/span>Exceptions of\nFaceless Assessment<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The <strong><em>exceptions<\/em><\/strong> to the <strong><em>scheme<\/em><\/strong>\nof <strong><em>Faceless\nAssessment <\/em><\/strong>are as follows:<\/p>\n\n\n\n<ol><li>Black Money Act\nand Benami Property;<\/li><li>International\nTaxation;<\/li><li>Cases concerning\nTax Evasion, Serious Fraud, and Sensitive and Search Matter;<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Concept_of_Faceless_Appeals\"><\/span>Concept of Faceless Appeals<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The <strong><em>notion <\/em><\/strong>behind the concept of <strong><em>Faceless\nAppeals<\/em><\/strong> is <strong><em>similar<\/em><\/strong> to <strong><em>Faceless Assessment<\/em><\/strong>. The term \u201c<strong><em>Faceless\nAssessment<\/em><\/strong>\u201d denotes that the <strong><em>appeal of a case<\/em><\/strong> will be <strong><em>allotted<\/em><\/strong>\non a <strong><em>random\nbasis<\/em><\/strong> to <strong><em>any officer<\/em><\/strong> in the country. <\/p>\n\n\n\n<p>The <strong><em>identity<\/em><\/strong> of the <strong><em>tax officer<\/em><\/strong> deciding the\nappeal <strong><em>will remain anonymous<\/em><\/strong> to the <strong><em>taxpayer<\/em><\/strong>. <\/p>\n\n\n\n<p>In this regard, our <strong><em>Hon\u2019ble Prime Minister<\/em><\/strong>\nstated that till now, the <strong><em>authority<\/em><\/strong> to <strong><em>decide an appeal<\/em><\/strong> was with\nthe <strong><em>IT\ndepartment<\/em><\/strong> of the <strong><em>respective city<\/em><\/strong>. However, now the <strong><em>team<\/em><\/strong>\nfor <strong><em>deciding\nappeal<\/em><\/strong> will be <strong><em>chosen<\/em><\/strong> with the <strong><em>help of technology<\/em><\/strong> randomly\nfrom <strong><em>any\ncity<\/em><\/strong> of the country.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Features_of_Faceless_Appeals_Scheme\"><\/span>Features of Faceless Appeals Scheme<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The <strong><em>features <\/em><\/strong>of the <strong><em>Faceless Appeals Scheme<\/em><\/strong>\nare as follows:<\/p>\n\n\n\n<ol><li>Appeals will be allotted\non a random basis to any Tax Officer;<\/li><li>The Identity of the\nTax Officer will not be disclosed;<\/li><li>No Need to Visit\nthe Tax Officer;<\/li><li>Appellate\nDecisions will be Team-based and Reviewed;<\/li><\/ol>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Exceptions_of_Faceless_Appeals\"><\/span>Exceptions of\nFaceless Appeals<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The exceptions to the scheme of Faceless Appeals are\nas follows:<\/p>\n\n\n\n<ol><li>Black Money Act\nand Benami Property;<\/li><li>International\nTaxation;<\/li><li>Cases concerning\nTax Evasion, Serious Fraud, and Sensitive and Search Matter;<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Concept_of_Tax_Payers_Charter\"><\/span>Concept of Tax Payer\u2019s Charter<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The term \u201c<strong><em>Tax Payer\u2019s Charter<\/em><\/strong>\u201d denotes a <strong><em>two-way\ndocument<\/em><\/strong> for the <strong><em>tax officer<\/em><\/strong> and <strong><em>tax payer<\/em><\/strong>. It sets out\nthe <strong><em>rights\nand benefits<\/em><\/strong> given by the <strong><em>government to the taxpayers<\/em><\/strong> of\nIndia. Further, the <strong><em>terms and conditions<\/em><\/strong> of a charter <strong><em>vary from country to country<\/em><\/strong>.\nAnd after <strong><em>US<\/em><\/strong>, <strong><em>Canada<\/em><\/strong>, and <strong><em>Australia<\/em><\/strong>, <strong><em>India<\/em><\/strong> has become the <strong><em>4<sup>th<\/sup>\nnation<\/em><\/strong> to <strong><em>implement<\/em><\/strong> it as a <strong><em>law or statute<\/em><\/strong>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Governments_Commitment_towards_Taxpayers\"><\/span>Government\u2019s Commitment towards Taxpayers <span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong><em>The government has committed the taxpayers in the following ways: <\/em><\/strong><\/p>\n\n\n\n<ol><li>To Provide\nCourteous, Fair, and Reasonable Treatment;<\/li><li>Treat taxpayers as\nHonest;<\/li><li>To Provide\nRobust Mechanism for Review and Appeal;<\/li><li>To Provide Accurate\nand Complete Information;<\/li><li>To Provide\nTimely Decisions;<\/li><li>To Collect the\nAccurate Amount of Tax;<\/li><li>To Respect the\nPrivacy of the Taxpayers;<\/li><li>To Maintain\nConfidentiality;<\/li><li>To Hold its Tax Authorities\nAccountable;<\/li><li>To Enable\nRepresentative of Choice;<\/li><li>To Provide\nRobust System to Lodge Complaint;<\/li><li>To Provide Fair\nand Just System;<\/li><li>To Publish\nStandards for Service and Report Periodically;<\/li><li>To Reduce\nCompliance;<\/li><\/ol>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Obligations_of_Taxpayers_under_Charter\"><\/span>Obligations of Taxpayers under Charter<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The obligations of Taxpayers mentioned under the\nTaxpayer\u2019s Charter are as follows:<\/p>\n\n\n\n<ol><li>To be Honest and\nCompliant;<\/li><li>To be Informed\nand Vigilant;<\/li><li>To Keep Accurate\nRecords;<\/li><li>To Know what\nyour Representative or Agent does on your behalf;<\/li><li>To Respond on Timely\nBasis;<\/li><li>To Pay in Time;<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Impact_of_Continuous_Tax_Reforms_in_India\"><\/span>Impact of Continuous\nTax Reforms in India<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The <strong><em>Prime Minister,<\/em><\/strong> in his <strong><em>speech,<\/em><\/strong>\nstated that <strong><em>out of all<\/em><\/strong> the <strong><em>Income Tax Returns<\/em><\/strong> (ITR) filed in\nthe <strong><em>financial\nyear 2012 to 2013<\/em><\/strong>, <strong><em>0.94%<\/em><\/strong> <strong><em>underwent Tax Scrutiny<\/em><\/strong>.\nHowever, the <strong><em>limit came down<\/em><\/strong> to almost <strong><em>four times<\/em><\/strong> in the year <strong><em>2018\nto 2019<\/em><\/strong>, i.e., <strong><em>0.26%.<\/em><\/strong> <\/p>\n\n\n\n<p>Moreover, <strong><em>due to continuous efforts<\/em><\/strong>, the <strong><em>count\nof people filing<\/em><\/strong> their <strong><em>ITR <\/em><\/strong>(Income Tax Return) has <strong><em>increased\nto 2.5 crores<\/em><\/strong> in the <strong><em>last 6 years<\/em><\/strong>. However, the <strong><em>same\nis microscopic<\/em><\/strong> in a country of <strong><em>130 crore people<\/em><\/strong>. <\/p>\n\n\n\n<p>Further, <strong><em>PM mentioned<\/em><\/strong> that in the <strong><em>last\nfew years<\/em><\/strong>, more than <strong><em>1500 obsolete laws<\/em><\/strong> had been <strong><em>repealed<\/em><\/strong>.\nAnd <strong><em>earlier<\/em><\/strong>,\nthe <strong><em>ranking\nof India<\/em><\/strong> in the \u201c<strong><em>Ease of Doing Business<\/em><\/strong>\u201d was <strong><em>134<\/em><\/strong>.\nHowever, the same got <strong><em>improved today to 63<\/em><\/strong>.<\/p>\n\n\n\n<p><strong><em>Implementation<\/em><\/strong>\nof <strong><em>Goods\nand Service Tax<\/em><\/strong> (GST) in India has <strong><em>replaced several laws<\/em><\/strong>, such as <strong><em>Excise\nDuty<\/em><\/strong>, <strong><em>Value Added Tax<\/em><\/strong>, <strong><em>Central Sales Tax<\/em><\/strong>, <strong><em>Octroi\nDuty<\/em><\/strong>, <strong><em>Luxury Tax<\/em><\/strong>, etc. Now<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Other_Major_Reforms_Taken_By_the_Government\"><\/span>Other Major Reforms Taken By the Government<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Some of the other major tax reforms taken by the\nGovernment are as follows:<\/p>\n\n\n\n<ol><li><strong><em>Corporate Tax<\/em><\/strong> was reduced from <strong><em>30% to 22%.<\/em><\/strong> <\/li><li>For <strong><em>Manufacturing\nUnits<\/em><\/strong>, the Corporate Tax was <strong><em>reduced to 15%;<\/em><\/strong><\/li><li><strong><em>DDT <\/em><\/strong>(Dividend Distribution of Tax) was abolished;<\/li><li>The tax scheme \u201c<strong><em>Vishwas\nse Vivad Tak\u201d <\/em><\/strong>aims to <strong><em>effectively reduce<\/em><\/strong> the <strong><em>litigation<\/em><\/strong>\nand <strong><em>taxpayer\ngrievance<\/em><\/strong>, i.e., <strong><em>effectively settle disputes<\/em><\/strong>.<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The <strong><em>idea of Compliance is tricky, where there is complexity<\/em><\/strong>. That means if a law is <strong><em>clear and simple<\/em><\/strong>, then both the <strong><em>citizens and the country are happy<\/em><\/strong>. However, the same was not possible in the on-going Direct Tax Regime.<\/p>\n\n\n\n<p>Therefore, In India, there was a need for <strong><em>Fundamental and Structural Reforms<\/em><\/strong> to make the <strong><em>tax regime fair and fearless for a taxpayer<\/em><\/strong>. <\/p>\n\n\n\n<p>The implementation of <strong><em>Transparent Taxation: Honoring the Honest<\/em><\/strong> is a <strong><em>landmark decision in the era of tax administration<\/em><\/strong>. It will benefit the taxpayers of India by making the process of paying tax <em><strong>Seamless, Painless, and Faceless<\/strong><\/em>. <\/p>\n\n\n\n<p class=\"text-left\"><b>Also, Read<\/b>:<mark style=\"background: #fffd03 !important\"><a href=\"https:\/\/swaritadvisors.com\/learning\/online-gst-calculator-calculate-gst-amount\/\">Online GST Calculator: Easiest Way to Calculate GST Amount<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>\u201cMinimum Government and Maximum Governance\u201d The term \u201cTransparent Taxation\u201d denotes a new tech-driven taxpaying platform unveiled by our Hon\u2019ble Prime Minister, Mr. Narendra Modi, on 13.08.2020, through video conferencing at 11 am in New Delhi. The full name of this online platform is \u201c Transparent Taxation : Honoring the Honest\u201d[1] . The main aim of [&hellip;]<\/p>\n","protected":false},"author":17,"featured_media":12230,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[416,1],"tags":[],"_links":{"self":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts\/12227"}],"collection":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/users\/17"}],"replies":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/comments?post=12227"}],"version-history":[{"count":7,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts\/12227\/revisions"}],"predecessor-version":[{"id":12239,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts\/12227\/revisions\/12239"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/media\/12230"}],"wp:attachment":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/media?parent=12227"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/categories?post=12227"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/tags?post=12227"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}