TRANSPARENT TAXATION: SEAMLESS AND FACELESS
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TRANSPARENT TAXATION: SEAMLESS AND FACELESS
With an aim to bring greater transparency, easing tax compliances and benefiting the honest taxpayers the platform for faceless assessment, faceless appeal has been launched which would change the way taxes have been paid in India. The tax administration already contains a question mark due to red tapism, corruption leading to unnecessary harassment of taxpayers, personal bias and acquaintance to get scrutiny or notices settled. So this platform ‘TRANSPARENT TAXATION-HONOURING THE HONEST’ and has 3 features: faceless appeal, faceless assessment and taxpayers charter which will use technology such as data analytics and AI may prove to be a turning point in taxation system of India.
The platform is aimed at bringing more transparency in official communication through the newly-introduced Document Identification Number (DIN).
Features of faceless appeal and assessment are as follows:
- Random allotment of appeals to officers
- No need for taxpayers to visit offices or meet officials
- Non disclosure of identities of officers deciding the appeals
- Team based and reviewed Appellate decision
- Selection of taxpayer only through Data Analytics and AI
- Central issuance of notices with Document identification Number
- Draft assessment order in one city, review in another city and finalisation in third city.
- Automated random allocation of cases.
As an additional step under Transparent taxation and with a view to increasing the tax base the government has announced certain transactions are to be added with a view to expand the gamut of existing transaction under SFT’s which are as follows:
- Payment of educational fee/donations above Rs1 lakhs p.a.
- Electricity consumption above Rs. 1lacks p.a.
- Payment to Hotels above Rs 20,000
- Purchase of jewellery, white goods, painting, marbles etc. above Rs 1 lakhs
- Deposit/credits in a current account above Rs50 lakhs
- Deposit/credits in a non-current account above Rs 25 lakhs
- Payment of property tax above Rs 20,000p.a.
- Life insurance premium above Rs 50,000 p.a.
- Health insurance premium above Rs 20,000
- Share transactions/DMAT transactions/ Bank lockers
- Domestic business class air travel/foreign travel
The government states these measures are aimed at widening the tax base. For taxpayers, this implies enhanced flow of information to tax authorities.
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