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PM Modi Launches Taxpayer Letter: Everything You Need To Know


NEW DELHI: The taxpayer statute introduced by Prime Minister Narendra Modi on Thursday outlines the rights and duties of an honest taxpayer. It also defines the commitment of the tax department and the expectations of taxpayers.
“The taxpayers’ charter is a great step on the path of the nation’s development. It is a step towards uniting the rights and duties of the taxpayer and fixing the responsibilities of the government towards the taxpayer.”
PM Modi said when launching the platform ‘Transparent Taxes – Honoring the Honest’.

Tax officers will now be committed to a 14-point letter, which includes collecting “only the amount of tax owed” under the law, while taxpayers would have to be “responsible” and meet 6-point expectations, including being honest and complain.
These are the commitments made by the letter:
* Provide fair, courteous and reasonable treatment.
The income tax department will provide prompt, courteous and professional assistance in all dealings with the taxpayer.
* Treat the taxpayer as honest
The tax department will treat all taxpayers as honest, unless there is reason to believe otherwise.

* Provide an appeal and review mechanism.
The IT department will provide a fair and impartial review and appeal mechanism.
* Provide timely decisions
The department will make a decision in each income tax proceeding within the time prescribed by law.
* To collect the correct amount of taxes
The tax department will collect only the amount owed by law.
* Respect the privacy of the taxpayer.
The department will follow due process of law and will not be more intrusive than necessary in any investigation, examination or enforcement action.
* Maintain confidentiality
It will not disclose any information provided by the taxpayer to the department unless authorized by law.

* Hold your authorities accountable
The department will hold its authorities accountable for their actions.
* Enable election representative
The department will allow each taxpayer to choose an authorized representative of their choice.
* Provide mechanism to file complaint.
The department will provide a mechanism for filing a complaint and its prompt removal.
* To provide a fair and equitable system
It will provide a fair and impartial system and resolve tax issues within a specified time.
* Publish service standards and report periodically
The IT department will publish the standards for the provision of services on a regular basis.
* Reduce the cost of compliance
You will take due account of the cost of compliance when administering the tax legislation.

Here’s what the IT department expects from taxpayers:
* To be honest, obedient
Taxpayers are expected to honestly disclose complete information and comply with all compliance obligations.
* To be informed
The Taxpayer is expected to be aware of their compliance obligations under the tax law and seek the help of the department if necessary.
* Keep accurate records
Taxpayers are expected to keep accurate records required by law.
* Know what the representative does on your behalf
They are expected to know what information and presentations their authorized representative makes.
* Respond on time
The taxpayer is expected to make filings under the tax law in a timely manner.
* Make payments on time
The taxpayer is expected to pay the amount owed under the law in a timely manner.
Finance Minister Nirmala Sitharaman had announced that the Central Board of Direct Taxes (CBDT) will adopt a letter from contributors when presenting this year’s budget in February.

Stating that the Prime Minister’s vision is to empower taxpayers, provide a transparent system, and honor honest taxpayers, Sitharaman said the release of the taxpayers’ letter is a historic move.

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