New Delhi: As scores of taxpayers and chartered accountants have been demanding simpler Income Tax process and documents, Union Finance Minister Nirmala Sitharaman has asked tax officers to use simple language in income tax notices which would help in not instill fear in the minds of taxpayers. Meanwhile, CBDT Chairman Ravi Agrawal said the department will complete the task of reviewing the Income Tax Act of 1961 in the given timeframe of six months.
Use power judiciously: Sitharaman to taxmen
Addressing the Income Tax department officials at the 165th Income Tax Day celebration event, Sitharaman advised the I-T officers not to take “disproportionate” action and use use “power judiciously”.
The Finance Minister said taxmen should ensure that taxpayers are not subjected to unnecessary harassment and the tax authorities should mention the reason for sending tax notice and present their side of the story in a “crystal clear” way.
“It would be better if the tax-related communication is simpler in language, becomes devoid of technical words and is not convoluted so that an average taxpayer understands what he/she needs to do or what the notice is about,” Sitharaman said.
Sitharaman advised Income Tax officials to collect what is legitimately due and should do that in a “fair and friendly manner” and not instill fear in the minds of taxpayers.
She also was of the opinion that there was room for improvement in issuing refunds faster.
Asking taxmen to avoid “ham-handed ways” in dealing with taxpayers, the minister said tax officers must “trust the assessees”.
What CBDT chairman said
Sitharaman in her Budget speech announced the direct tax law of the country would be reviewed to make it simple, and the job would be completed in six months.
“We have an important task on hand, and that is the comprehensive review of the Income Tax Act, 1961. The purpose is to make the Act concise, lucid, and easy to read and understand. This exercise is aimed to reduce litigation and provide tax certainty to taxpayers,” CBDT Chairman Agrawal said during the same event.
Tax notices should have simpler language, Finance Minister Nirmala Sitharaman told taxmen. Review of Income Tax Act will be completed in given timeframe, CBDT Chairman said. Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
