PM Modi Launches “Transparent taxation”- Faceless assessment and taxpayers charter: 25 September 2020

‘Tax payers’ charter is a big step for the development journey of the nation. It is a step towards bringing together rights and duties of the taxpayers and facing the responsibility towards the taxpayers . 

Taxpayer charter is a unilateral measure by an authority and sets out rights and privileges granted by the authority to its subjects . Usually a tax payer charter is supposed to safeguard the rights of the tax payers , however the conditions of the charter differs among the different countries . 

“Transparent Taxation”-Honouring the honest ;

The Taxpayers charter unveiled by the Prime Minister Narendra Modi on august 13 outlines the Rights & Duties of an Honest taxpayer.  This new scheme also defines the commitment of the tax department & its expectations from the different tax payers . 

Conditions to be a part of the taxpayers charter :

• It will enumerate the fundamental rights of the tax payers and the basics standard of living .

• It is also an  important paramount importance that such enumeration is not merely an abstract statement of ideals like fairness and integrity , but also includes enforceable rights , for example , an efficient and time-bound redressal mechanism for the Dalys and refunds 

• taxpayers information would be kept confidential and won't be used expect as per legal requirements 

• There should be enshrining of the provision that media publicity that would cause any sort of embarrassment to the tax payers .

Tax officers will now be committed to a a 14- point charter , which includes ‘only tax amount due ‘ as per the law , while tax payers would have to be responsible and fulfilled 6 point expectation , including being honest . 

IT department shall provide fair & impartial appeal and review mechanism , the department would collect only the amount as per the law . Decisions should be taken under the proceedings within the time prescribed under law . Department aims to be no more intrusive than necessary in any inquiry , examination or enforcement action .

Out of 130 crore population only 1.6 crore people pay tax every year which accounts to 24 lakh/annum . This tax charter system is applicable in  4 countries including India .  Hence the government initiative is quite acknowledgeable step towards growth of India