22 august 2024 : Finance and Corporate Affairs Minister Nirmala Sitharaman called upon the Income Tax Department to strive for recognition as equitable and approachable to taxpayers.
“The Income Tax Department should aim to be the most equitable and approachable, in addition to being faceless. While friendliness in income tax is essential, it must not compromise our sovereign responsibilities. We must foster trust in the assessees,” she stated during the Income Tax Day celebrations held in New Delhi on Wednesday.
In commemoration of 165 years of Income Tax, Sitharaman highlighted the necessity for simplifying the language used in income tax notices and correspondence.
She further emphasized that tax notices should be made more comprehensible for the public. “The terminology employed in tax notices should be straightforward enough for the average taxpayer to grasp. There is a need to consider more straightforward tax notices, including explanations for the reasons behind the notices issued,” Sitharaman remarked.
She noted that the issuance of frequently asked questions and clarifications would be unnecessary if the language were simplified. Additionally, she mentioned that the experience of filing returns should remain consistent from the first day to the last, rather than being intimidating.
“Be more congenial. Utilize enforcement measures only as a last resort, ensuring that actions taken are proportionate to the issues at hand. Disproportionate actions only serve to amplify fears,” she concluded.
