MODI’S NEW TAXPAYERS' SCHEME - IS IT GOOD ENOUGH FOR THE NATION?
“A person doesn’t know how much he has to be thankful for, until he has to pay taxes for it.” - Ann Landers
At 11 a.m on the 13th of August, the Honourable Prime Minister of India, Mr. Narendra Modi unveiled a new taxpayers’ scheme. But genuinely thinking about it, this has been long due.
The scheme has been termed “Transparent Taxation -- Honouring the Honest” and basically lies on the foundation of people following their conscience and paying their taxes honestly. Following are the most important reforms brought in.
Firstly, a taxpayer charter is applicable from today and faceless assessment is available from the 25th of September. Now essentially, faceless assessment proves to be a boon to the Indian citizens, since discrimination against religions do take place on a large scale especially when it comes to faceless assessment. With this new initiative, equality and secularism is encouraged.
Secondly, ‘computers’ will randomly decide who gets to handle tax cases , and this essentially means the need to rid the relationships between the taxpayers and the tax officers, which avoids unwanted issues.
Furthermore, Finance Minister, Mrs. Nirmala Sitharaman has stated that the deadline for filing returns has been extended due to the pandemic and has caused a wave of relaxation amongst the citizens who were previously worried about their situation and how they were supposed to fill it in.
Kumarmanglam Vijay, Partner, J Sagar Associate had been quoted saying, ”Government has rightly increased the thresholds for appeals to be filed by the revenue to reduce litigations. These steps may significantly improve the direct tax to GDP ratio in going forward after reforms are fully implemented.”
We have also been told that we can expect structural reforms to be introduced in the upcoming months and years; India actually does seem to be going forward in terms of its economic policies. Further updates are yet to arrive and are likely to be released to the public in September.
Reporter: Kruthika Senthil Kumar