NEW DELHI: Prime Minister Narendra Modi on Wednesday said tax administration should be such that collections should not cause difficulties to anyone and individuals should realise the impact of their contribution when money reaches them.
While inaugurating Income Tax Appellate Tribunal’s office and residential complex in Odisha, the PM said the government has followed this principle in recent years to reform the tax system and make life easier for taxpayers. He said the mindset was to repose trust in the taxpayer, which was also reflecting in fewer proportion of cases being taken up for scrutiny.
“Today, the taxpayer is witnessing a massive change and greater transparency. ... During earlier regimes, there were complaints of tax terrorism, it was heard everywhere. Today, the country has left it behind and is moving towards tax transparency. The shift from tax terrorism to tax transparency is due to our approach of reform, perform and transform. We are reforming the rules, procedures and using technology. We are performing with a clear intent and objectives. Simultaneously, we are also transforming the mindset of the tax administration,” he said.
The PM then listed out several steps taken by the government — from lower tax rates for individuals and companies to quicker refunds, which, he said, is now paid in weeks instead of months earlier.
Similarly, he said, faceless assessment and dispute resolution, apart from honouring the honest taxpayer through a codified charter, were meant to bring about better administration.
Modi said his government has taken corrective measures to change the mindset of the colonial era, which should have been reformed after independence. “Today, there is no tax on income up to Rs 5 lakh. Those in the low and middle income groups are getting significant benefits. In this year’s Budget, the new option is easy and taxpayer is saved of undue stress and expenses.”