Finance Minister Nirmala Sitharaman on Wednesday asked tax officials to use simple words in income tax communications sent to taxpayers and use their power judiciously.
Nirmala Sitharaman, speaking at the 165th Income Tax Day celebrations in the national capital, said after adopting the faceless regime, tax officials must now aim to be more “fair and friendly” in their dealings with taxpayers.
He said tax notices should not instill a “sense of fear” among taxpayers but should be simple and straightforward.
The finance minister said the notice should make it “very clear” to taxpayers why they are receiving it.
Nirmala Sitharaman He also mentioned that there is room for improvement in issuing refunds more quickly. He asked tax officials to avoid “clumsy ways” in dealing with taxpayers and said that the measures taken must be proportional to the problem.
He also urged that enforcement measures be used only as a last resort and that the department’s goal should be to encourage voluntary compliance.
He finance minister He also stressed that when he says the tax department should be more friendly and transparent, it does not mean that tax officials have been unfair all these years.
“Can we explore the possibility of issuing simple and easy-to-understand notices? Explaining the reasons why the action was taken and why the notice was issued,” Sitharaman said.
The minister, stating that she would support the tax department, said tax officials must continue to perform their sovereign duties.
Taxpayers who opt for the new tax regime
Finance Minister Nirmala Sitharaman also said that Indian taxpayers are increasingly opting for the new tax regime.
“The fact that 72 per cent have moved from the old system to this (new system) clearly shows that it has now been accepted as a very well thought-out system, where fares are simple, there are no compliance issues and hence it has become very attractive,” Sitharaman said.
(With contributions from agencies)
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