DIRECT TAX REGIME
Context: While presenting the Union Budget, Union Finance Minister has proposed wide-ranging facilitation measures in Direct Tax Regime.
KEY HIGHLIGHTS ‘Vivad Se Vishwas’ Scheme (No dispute but trust) has been proposed by the Union Budget which aims at reducing litigations in the direct taxes payments. Under the proposed scheme, a taxpayer would be required to pay only the amount of the disputed taxes and will get complete waiver of interest and penalty provided he pays by 31st March, 2020. Those who avail this scheme after 31st March, 2020 will have to pay some additional amount. The scheme will remain open till 30th June, 2020. Instant PAN through Aadhaar: The Finance Minister has also proposed to launch a system under which PAN shall be instantly allotted online on the basis of Aadhaar without any requirement for filling up of detailed application form. In the last Budget, the interchangeability of PAN and Aadhaar was introduced. Faceless appeals: A new faceless assessment scheme has already been introduced in order to impart greater efficiency to the assessment process. Now, the Finance Minister proposed to amend the Income Tax Act so as to enable Faceless appeal on the lines of Faceless assessment. The Taxpayer’s Charter: The Union Budget proposed to amend the provisions of the Income-tax Act to mandate the Central Board of Direct Taxes (CBDT) to adopt a Taxpayers’ Charter in order to enhance the efficiency of the delivery system of the Income Tax Department. However, the details of the contents of the charter is yet to be notified. Charity institutions: The Union Budget proposed to pre-fill the donee’s information in taxpayer’s return on the basis of information of donations furnished by the donee in order to ease the process of claiming deduction for donation to charitable institution. This would result in hassle-free claim of deduction for donations made by the taxpayer. In order to simplify the compliance for the new and existing charity institutions, Finance Minister proposed to make the process of registration completely electronic under which a unique registration number (URN) shall be issued to all new and existing charity institutions.
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