Nirmala Sitharaman comes Hard on ‘Tax Terror’, Introduces ‘Faceless’ Scrutiny

NEW DELHI: Finance Minister Nirmala Sitharaman on Friday said that tax authorities do not have to overreach or harass as the tax targets set in the Budget are well within achievable limits.

The minister’s assertions came at a meeting here in which she announced a slew of steps to boost growth via reform measures. The minister also announced that the government would introduce ‘faceless’ scrutiny of tax liabilities of individuals and corporates.

Lately, India Inc has called for measures to curb ‘tax terrorism’.

Sitharaman said she has met several state tax officials and urged them not to lay stress on tax liabilities. She would also meet tax officials across the country and convey the message.

Nirmala Sitharaman said technology can be used to monitor tax payments and liabilities, which should be used by the authorities.

Announcing introduction of ‘faceless’ scrutiny, the minister said from the upcoming Vijaya Dashami in October, no tax official will have to physically visit any individual for tax summons and monitoring.

She said that tax notices and summonses without a computer generated unique ID number would not be valid. This measure would help curb unauthorized tax summonses.

She said all pending IT notices will be disposed of within three months from the date of reply, adding all pending income tax notices till now will be resolved by October 1, 2019.

Additionally, IT notices will be sent through centralized computer system from October 1, 2019.

In a big relief to start-ups, the minister withdrew ‘angel tax’ provision for startups and their investors.

On violation of corporate social responsibility norms, the Minister said such violations would not be treated as criminal offence. Prosecution will be replaced with a more humane approach and wealth creators will be honoured and respected, she added. (IANS)

HIGHLIGHTS

Taxation

Labour laws

Corporate affairs

CSR violations

Banks to effect timely rate cuts

Customer Ease

Online tracking of loan applications

Support to NBFCs/HFCs

More credit support for purchase of houses, vehicles, consumption goods,

GST Refund to MSME

Delayed Payments