India’s Finance Minister Nirmala Sitharaman has called for a significant overhaul of the country’s tax system, emphasizing the need for simplicity, clarity, and improved taxpayer services. Addressing the 165th anniversary of the Income Tax Department, Sitharaman stressed the importance of creating a more taxpayer-friendly environment.
She specifically urged the department to simplify the tax process, making it easier for individuals and businesses to navigate. Sitharaman highlighted the importance of clear and concise communication, particularly in tax notices and correspondence, calling for the use of language that is easily understandable by the general public.
Sitharaman also emphasized the need to minimize litigation and ensure tax certainty. She underscored that enforcement measures should be a last resort and should be proportionate to the issue at hand.
The Finance Minister announced that the government is committed to simplifying the Income Tax Act, with plans to rewrite portions of it in clear, easily understandable language within six months. This initiative aligns with Prime Minister Narendra Modi’s vision of a seamless and faceless tax administration.
Sitharaman stressed the importance of timely relief for taxpayers and urged the department to expedite the disposal of tax appeals. She believes that a simplified and streamlined tax system will encourage greater taxpayer compliance and contribute to a more robust and transparent tax environment in India.
