Prime Minister Narendra Modi on Thursday unveiled ‘Transparent Taxation – Honoring the Honest’ platform in order to “reform and simplify our tax system.” During the launch of the tax platform, he stated that honest taxpayers play an important role in national development.

The platform is aimed at bringing more transparency in official communication through the newly-introduced Document Identification Number (DIN). PM Modi said the ongoing structural reforms have “reached new heights today” and that the ‘Transparent Taxation – Honoring the Honest’ platform will “have faceless assessments, faceless appeal and taxpayer charter.”

This is considered to be another step that will make the lives of the taxpayers easier. Over the years, the income tax department has carried out several major reforms, including a reduction in the corporate tax. The department had also abolished the dividend tax. It has also been focussing on the simplification of direct tax laws and increasing transparency in communication. A major step in this regard was the introduction of Document Identification Number (DIN) wherein every communication of the department would carry a computer generated unique document identification number.

“Faceless appeal will be applicable, while faceless assessment and taxpayer charter will come into place from today itself,” PM Modi added. The taxpayers’ charter and faceless assessment are the next phases of direct tax reforms aimed at easing compliance and rewarding honest taxpayers as the government looks to rebuild the pandemic-hit economy. Faceless assessment, which does not require taxpayers to visit any office or meet any official, and taxpayers’ charter will be implemented on August 13. The faceless appeal will come into force from September 25, PM Modi announced.
To increase the ease of compliance for taxpayers, the IT department has moved forward with the prefilling of income tax returns to make compliance more convenient for individual taxpayers. Compliance norms for startups have also been simplified.

The Direct Tax Vivad se Vishwas Act, 2020, was also introduced to settle tax disputes.

Further, the Income Tax department has undertaken several measures to promote digital transactions and electronic modes of payment. The department is committed to take the initiatives forward and has also made efforts to ease compliances for taxpayers during Covid-19 time by extending statutory timeliness for filing returns as also releasing refunds expeditiously to increase liquidity in the hands of taxpayers.