New Delhi: Prime Minister Narendra Modi will on Thursday launch a platform for honest taxpayers of the country. Before Independence Day, he will launch a platform called ‘Transparent Taxation-Honoring the Honor’ through video conferencing. The ‘Taxpayer Charter’ was announced in the Union Budget for FY 2020-21 presented on 1 February. A release issued by the government said that the introduction of this platform is another step taken towards direct tax reform. Union Finance Minister Nirmala Sitharaman and Minister of State for Finance Anurag Singh Thakur will also participate in the event. Apart from these, representatives of various industry boards, trade associations, chartered account associations and prominent taxpayers will also participate.  

It is noteworthy that Finance Minister Nirmala Sitharaman has said in the past that taxpayers are the creators of the nation and the government will bring a charter of rights for them. According to the Finance Minister, the Prime Minister describes taxpayers as ‘nation-makers’. 

Prime Minister Narendra Modi to launch the platform for “Transparent Taxation – Honoring the Honest” via video-conferencing tomorrow. (file pic)

Let us know what steps the government has taken regarding tax reforms so far:

  • Last year, the rate of corporate tax was reduced from 30 per cent to 22 per cent. In addition, the rate for new manufacturing units was reduced to just 15 per cent. Also the dividend distribution tax was abolished. 
  • The government release said that while improving tax, the focus has been on reducing tax rates and simplifying the rules related to direct tax. The Central Board of Direct Taxes (CBDT) has recently taken a number of steps to improve the functioning of the Income Tax Department and bring transparency.
  • In this episode, the Document Identification Number (DIN) has been introduced by the department to ensure greater transparency regarding official communication. Under this, every communication issued by the department has a computer generated unique identification number. 
  • Similarly, in view of the convenience of taxpayers, the Income Tax Department has started the prefilling of income tax returns. This makes it easy for taxpayers to file income tax returns. Compliance rules have been simplified for startup companies.