The Union Budget 2020 inserted a new section 119A to notify the Taxpayers Charter specifying the taxpayers’ rights and obligations. It promises to maintain the privacy and confidentiality of income taxpayers and to reduce the cost of compliance with tax laws. It aims for clean and corruption-free governance. The charter lists out the department's commitments towards the income taxpayer as well as what the department expects from the taxpayers. Taxpayers Charter is a bridge building measure between the taxpayer and the income tax department. It defines a taxpayer’s rights and obligations under the law and also specifies the department’s commitment to providing services to the taxpayers. It is expected to bring greater transparency in the tax services and would certainly change the perception of the taxpayers and officials from taxpayers.
Income Tax department is committed to:
Provide fair, courteous, and reasonable treatment : The Department shall provide prompt, courteous, and professional assistance in all dealings with the taxpayer.
Treat taxpayer as honest : The Department shall treat every taxpayer as honest unless there is a reason to believe otherwise.
Provide mechanism for appeal and review : The Department shall provide fair and impartial appeal and review mechanism.
Provide complete and accurate information : The Department shall provide accurate information for fulfilling compliance obligations under the law.
Provide timely decisions : The Department shall take decision in every income tax proceeding within the time prescribed under law.
Collect the correct amount of tax : The Department shall collect only the amount due as per the law.
Respect privacy of taxpayer : The Department will follow due process of law and be no more intrusive than necessary in any inquiry, examination, or enforcement action.
Maintain confidentiality : The Department shall not disclose any information provided by taxpayer to the department unless authorized by law.
Hold its authorities accountable : The Department shall hold its authorities accountable for their actions.
Enable representative of choice : The Department shall allow every taxpayer to choose an authorized representative of his choice.
Provide mechanism to lodge complaint : The Department shall provide mechanism for lodging a complaint and prompt disposal thereof.
Provide a fair & just system : The Department shall provide a fair and impartial system and resolve the tax issues in a time-bound manner.
Publish service standards and report periodically : The Department shall publish standards for service delivery in a periodic manner.
Reduce cost of compliance : The Department shall duly take into account the cost of compliance when administering tax legislation.
And expects taxpayers to:
Be honest and compliant : Taxpayer is expected to honestly disclose full information and fulfil his compliance obligations.
Be informed : Taxpayer is expected to be aware of his compliance obligations under tax law and seek help from the department if needed.
Keep accurate records : Taxpayer is expected to keep accurate records required as per law.
Know what the representative does on his behalf : Taxpayer is expected to know what information and submissions are made by his authorised representative.
Respond in time : Taxpayer is expected to make submissions as per tax law in timely manner.
Pay in time : Taxpayer is expected to pay the amount due as per law in a timely manner.
Taxpayers can approach the Taxpayers’ Charter Cell under Principal Chief Commissioner of Income tax in each Zone for compliance to this charter. For more Information, visit http://incometaxindia.gov.in