Transparent Taxation-Honoring the Honest (Faceless Assessment, Appeals)- Taxpayers Charter

As a part of “Reforms To Reward Your Honesty the Income Tax Department has implemented various measures to make tax compliance easier for taxpayers on 13th August 2020. This was launched as India’s first taxpayers charter.

1-Faceless Assessment

2-Faceless Appeals

3-Taxpayers Charter

We will discuss in details.

Highlights of Faceless Assessment Scheme:

  • Dynamic Jurisdiction
  • Team based Assessment
  • Reply to notice electronically
  • No visits to Income Tax Office Required
  • Speedy Completion

Highlights of Faceless Appeals:

  • Random Allotment of cases
  • Reply to notices electronically
  • No personal visit required
  • Review before final order

Highlights of Taxpayers Charter:

  • Our Commitment for providing a transparent and taxpayer friendly regime
  • Forging trust between taxpayer and Department
  • Our expectations from taxpayers

Features of the Faceless Assessment Scheme:

  • Selection is done through system using data analytics and artificial intelligence;
  • Abolition of territorial jurisdiction;
  • Automated random allocation of cases;
  • Central issuance of notices with document identification number (DIN);
  • No physical interface and need to visit income tax office;
  • Team-based assessments and review;
  • Draft assessment order in one city, review in another and finalisation in the third city
  • Objective, fair and Just Order
  • 2/3 rd of manpower is utilised for faceless and balance for other functions

Exceptions:

  • Cases relating to serious fraud, major tax evasion, sensitive and search matter
  • International tax
  • Black Money Act and benami property

Benefits of Faceless Assessment Scheme:

  • Erase of compliance For Taxpayers
  • No Human Interface
  • Transparency and Efficiency
  • Functional Specialisation
  • Improvement in Quality of Assessment
  • Expeditious Disposal of Cases

TAXPAYERS CHARTER

As per Taxpayers Charter The Income Tax Department is committed to:

1-To provide fair, courteous and reasonable treatment: The tax department will provide prompt, courteous and professional assistance in dealings with the taxpayer.

2-Treat taxpayer as honest: The income tax department shall treat every taxpayer as honest unless there is a reason to believe otherwise.

3-To provide mechanism for appeal and review: The tax department shall provide fair and impartial appeal and review mechanism.

4-To provide complete and accurate information: The department shall provide accurate information for fulfilling compliance obligations under the law.

5-To provide timely decision: The department shall take decision in every income-tax proceeding within the time prescribed under the law.

To collect the correct amount of tax: The department shall collect only the amount due as per the law.

6-To respect privacy of taxpayers: The department will follow the due process of law and be no more intrusive than necessary in any inquiry, examination or enforcement action.

7-To maintain confidentiality: The department shall not disclose any information provided by the taxpayer to the department unless authorized by law.

8-To hold its authorities accountable: The department shall hold its authorities accountable for their actions.

9-To enable representative of choice: The department shall allow every taxpayer to choose an authorized representative of his choice.

10-To provide mechanism to lodge complaint: The department shall provide mechanism for lodging a complaint and prompt disposal thereof.
To provide a fair & just system: The department shall provide a fair and impartial system and resolve the tax issues in time-bound manner.

11-To publish service standards & report periodically: The department shall publish standards for service delivery in a periodic manner.

12-To reduce cost of compliance: The department shall duly take into account the cost of compliance when administering tax litigation.

Here’s what the taxpayer charter expects from the tax payers.

1-Be honest and compliance: Taxpayer is expected to honestly disclose full information and fulfil his compliance obligations

2-Be informed: Taxpayer is expected to be aware of his compliance obligations under tax law and seek help of department if needed.

3-Keep accurate records: Taxpayer is expected to keep accurate records required as per law.

4-Know what the representative does on his behalf: Taxpayer is expected to know what information and submissions are made by his authorized representative.

5-Respond in time: Taxpayer is expected to make submissions as per tax law in timely manner.

6-Pay in time: Taxpayer is expected to pay amount due as per law in a timely manner.

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