PM to announce next set of direct tax reforms

The Prime Minister Narendra Modi is all set to launch the next set of direct tax reforms in the country keeping in mind the announcements made in the Union Budget 2020-21. The PM will honour the country’s honest taxpayers by launching a platform to that effect.

Details of the Platform

The platform, named as ‘Transparent Taxation – Honouring the Honest’ by the Prime Minister will carry forward the journey of the direct tax reforms in the country. The government has announced a ‘taxpayer charter’ in the Union Budget 2020-21 that would have the statutory status and was aimed at empowering citizens by ensuring time-bound services by the Income Tax Department of the country.

More about ‘Taxpayer Charter’

This charter was announced by the Finance Minister and it will also ensure trust between a taxpayer and the administration. Moreover, this charter will also reduce any kind of harassment by the tax authorities to the taxpayers. The overall functional efficiency will also be increased by this charter. The FM had promised that the wealth creators would be respected and honoured in the country.

Background

The Central Board of Direct Taxes (CBDT) has already carried out several major tax reforms in the country in the area of direct tax and the government has also reduced the corporate tax rate from 30% to 22% with the rates for the new manufacturing units being slashed to 15% in order to encourage setting up of more such units in the country. The overall objective of the tax reforms has been that reduction in tax rates and simplification of the tax laws. Several initiatives have been undertaken by the CBDT for bringing in efficiency and transparency in the functioning of the department and the CBDT, the apex body for direct taxes in the country.

Month: Current Affairs - August, 2020