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The government of India has brought transparent taxation in the recent FY 21-22 to reward and honour the honest taxpayers of India. In India, where only 1% of the population pays Direct Taxes, it has been a significant problem, like cases where tax authorities intimate the person and firms. The transparent taxation rule aims to benefit the honest taxpayers and secrecy to the person with default taxes. However, with the excellent and profitable aim of the transparent taxation rule, every citizen of India will be motivated to stand up and pay taxes on time without any hesitation.
Taxation Problem in India
The problem of not paying taxes in India has been a real issue for a long time, people are afraid to fill up their defaulted tax balance due to several legal reasons, and most of them try to hide the money from the government. As a result, many citizens of India used to launder their money in some less tax-demanding area to save a hefty amount of taxes, which could be redeemed back using some loopholes in the system.
Even less than the total of 1% of the total population in India pays their taxes on time without any default. India had to do demonetization to destroy the black money in the country and start a new chapter. Still, people were so clever that most of the total cash in the market came back as white, which was not expected and drastically changed the excellent effects of the demonetization into the worst phase of the Indian economy and the failure of the failure the policy.
Transparent taxation policy overview
After the demonetization failed, the government knew that India’s tax problem would only be solved when the people themselves would be comfortable paying their taxes without using any existing loophole or laundering. So, India’s government introduced a policy that handled every insecurity of the citizen of India while paying their due and current taxes.
The new policy also honoured the country’s existing taxpayers by giving them various acknowledgements and securing their privacy for future transactions by providing a faceless taxation assessment program. The government reduced the overreach of the tax officials to the taxpayer to the lowest level possible to diminish any harassment and intimidation.
The transparent taxation rule has aimed to provide full transparency with the lowest tax rates possible to society’s sector who fear paying taxes.
Impact on the citizen of the nation
The impact of the new transparent taxation rule was higher than expected. The sudden increase in the taxes paid by the people started when the government implemented this rule. The impact of the new transparent taxation rule was not only on the people but also on the officials who were dependent on corruption from the tax office taken from the defaulted taxpayers. Using loopholes would reduce the amount.
One of the many key features of the transparent taxation rule is that it reduces the chances of corruption in the system now. Union of the tax authorities also reached the concerned higher power for the same that this aim of the transparent taxation rule, which is to do the faceless assessment, will affect the tax collection and will put more burden on the official to meet the desired target of tax collection for the fiscal year.
Features of the new Transparent taxation rule
The most important key features of the new transparent taxation rule impacted a significant part of every sector of society. The aim of the transparent taxation rule and its features were set according to the satisfaction and comfort of the taxpayer and tax-saver of the organization (people who save tax by money laundering or using loopholes that exist in the tax policy). Let’s discuss the key features of the new transparent taxation rule:
- The Faceless assessment came into compliance, stating that there will be scrutiny between the taxpayer and the tax authority. Cases will be automatically allotted to any official of any city department.
- The system of faceless appeal stated that appeals can be and will be randomly allocated to the officers using AI and technology-based approaches. The decision will be team-based and reviewed.
Conclusion
The need for a suitable policy to increase the tax deficiency of the citizen of India was at its peak. With the help of the new transparent taxation policy, the Indian government introduced a wave of comfort and diminished the sense of fear among the citizens. People who are afraid to go to the tax offices and departments to meet the officials and pay the legal amount of tax of black money they own got an easy way to fill up everything. Giving taxes on time and not doing money laundering will not just increase the government’s spending capacity in favour of the citizens.
