Focus: GS-III Indian Economy
Why in news?
Prime Minister will launch the platform for “Transparent Taxation – Honoring the Honest”.
Introduction and Background
- The focus of the tax reforms has been on reduction in tax rates and on simplification of direct tax laws.
- The Central Board of Direct Taxes (CBDT) has carried out several major tax reforms in direct taxes in the recent years, and several initiatives have been taken by the CBDT for bringing in efficiency and transparency in the functioning of the IT Department.
Recent Steps taken so far
- Document Identification Number (DIN) was introduced wherein every communication of the Department would carry a computer-generated unique document identification number, bringing more transparency in official communication.
- IT Department has moved forward with prefilling of income tax returns to make compliance more convenient for individual taxpayers, to increase the ease of compliance for taxpayers.
- IT Department also brought out the Direct Tax “Vivad se Vishwas Act, 2020” to provide for resolution of pending tax disputes.
- To effectively reduce taxpayer grievances / litigation, the monetary thresholds for filing of departmental appeals in various appellate Courts have been raised.
- Digital transactions and electronic modes of payment too have been encouraged to cutdown red tapism.
What is ‘Transparent Taxation- Honoring the Honest’ scheme?
This will reform and simplify the tax system in India to benefit the honest taxpayers of the country, whose hard work powers the progress of the nation. (More information will be released soon).
