Greetings of the day!
This edition will provide you with an in-depth analysis of the Taxpayers Charter and Faceless Assessment announced by the Prime Minister on 13th August, 2020.
The Burning Tale
What is a charter?
A charter is the grant of authority or rights, stating that the granter formally recognizes the prerogative of the recipient to exercise the rights specified. The purpose is to protect those rights against infringement from public officials and private citizens.
Why was the charter introduced?
The aim of introducing the charter is to build a trust between a taxpayer and the tax administration and reduce harassment. The charter lists out the income tax department’s commitments to the income taxpayer as well as what the department expects from the taxpayers.
What does the Taxpayers’ Charter promise?
The charter promises to-
Treat taxpayers as honest individuals and entities, unless there is a reason to suspect otherwise.
Provide fair and impartial mechanisms for review and appeal against (I-T department’s) decisions.Collect the correct amount of taxes due.Respect taxpayers’ privacy and maintain confidentiality, refrain from intrusive inquiries or action.Provide mechanism to taxpayers to lodge complaints and ensure prompt resolution.
Heard this before?
Deja vu! The income tax department came out with a Taxpayers or a Citizens Charter for the first time in November 1998. It promised to redress all complaints within 30 days, issue refunds within 30 days of determination, and also keep all personal and business information/materials furnished to the department, confidential.
Will the new charter change anything?
The Income Tax department revised the old charter in 2007, again in 2010 and subsequently on April 29, 2014. Yet, the promises made remained unfulfilled. The success of the new charter depends on the way the details are drawn up, the procedures and mechanisms provided and its implementation. Without strict implementation and a detailed mechanism, this charter may end up like the previous one.
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BONUS: We have made a detailed analysis of the impact that the Taxpayer’s Charter and Faceless assessment will have on your life. Click here to watch the video.
Thank you for pausing from your busy day and gracing us with your precious time. We will get back to you in the next edition with more exciting and interesting updates.
Stay Safe, Stay Home
Editorial Team: Divyam Jain, Loveleen Kaur
Design: Anirudh Sharma