Taxpayers' charter unveiled: All you need to know

NEW DELHI: The taxpayers' charter unveiled 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 from the taxpayers.
"Taxpayers' charter is a big step in the development journey of the nation. It is a step towards bringing together rights and duties of the taxpayer and fixing the government's responsibilities towards the taxpayer,"
PM Modi said while launching the platform 'Transparent Taxation - Honoring the Honest'.

The tax officers will now be committed to a 14-point charter, which includes collecting "only tax amount due" as per the law, while taxpayers would have to be "responsible" and fulfill 6-point expectations, including being honest and complaint.
Here are the commitments made by the charter:
* To provide fair, courteous and reasonable treatment
The income tax department shall provide prompt, courteous and professional assistance in all dealings with the taxpayer.
* Treat taxpayer as honest
The tax department shall treat every taxpayer as honest unless there is a reason to believe otherwise.

* To provide mechanism for appeal and review
The I-T department shall provide fair and impartial appeal and review mechanism.
* Provide timely decisions
The department shall take decision in every income-tax proceeding within the time prescribed under law.
* To collect the correct amount of tax
The tax department shall collect only the amount due as per the law.
* Respect privacy of taxpayer
The department will follow due process of law and be no more intrusive than necessary in any inquiry, examination, or enforcement action.
* Maintain confidentiality
It shall not disclose any information provided by taxpayer to the department unless authorized by law.

* Hold its authorities accountable
The department shall hold its authorities accountable for their actions.
* Enable representative of choice
The department shall allow every taxpayer to choose an authorized representative of his choice.
* To provide mechanism to lodge complaint
The department shall provide mechanism for lodging a complaint and prompt disposal thereof.
* To provide a fair & just system
It shall provide a fair and impartial system and resolve the tax issues in a time-bound manner.
* Publish service standards and report periodically
The I-T department shall publish standards for service delivery in a periodic manner.
* Reduce cost of compliance
It shall duly take into account the cost of compliance when administering tax legislation.

Here is what the I-T department expects from the taxpayers:
* To be honest, compliant
Taxpayers are expected to honestly disclose full information and fulfil all compliance obligations.
* To be informed
The Taxpayer is expected to be aware of his compliance obligations under tax law and seek help of department if needed.
* Keep accurate records
Taxpayers are expected to keep accurate records required as per law.
* Know what the representative does on his behalf
They are expected to know what information and submissions are made by their authorised representative.
* To respond in time
Taxpayer is expected to make submissions as per tax law in timely manner.
* Make payments in time
Taxpayer is expected to pay amount due as per law in a timely manner.
Finance minister Nirmala Sitharaman had announced that the Central Board of Direct Taxes (CBDT) will adopt a taxpayers' charter while unveiling this years Budget in February.

Stating that the vision of the Prime Minister is to empower the taxpayers, to provide a transparent system and honour the honest taxpayers, Sitharaman said the launch of taxpayers' charter is a historic move.

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