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Honest taxpayers deserve to be recognised for paying due share of taxes: FM
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Assessees can soon interact with tax officer in virtual conference facility of faceless assessment system
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Tax ombudsman on the cards: Will it have adequate teeth?
Survey hints at reintroduction of the independent redressal organisation
If you are a taxpayer, you sure would have a tale to tell about your tryst with the tax department. While there are some mechanisms to help taxpayers resolve their grievances, the Economic Survey offers a new ray of hope by emphasising on the need for reintroducing the tax ombudsman, independent of tax administration, to fulfil taxpayers’ rights. It states that a dedicated institution to take up issues from taxpayers’ perspective helps in developing trust of the taxpayers.
Background For direct taxes, the Institution of Income-Tax (I-T) Ombudsman was created in the year 2003 to deal with grievances related to settlement of IT complaints.
Synopsis
To avoid the conflict of interest, ensure fair dealings and consequently build the trust between taxpayers and the concerned tax authority, it is imperative that the redressal organisation has adequate teeth and is independent of the tax department.
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The Economic Survey 2020-21 has suggested setting up of an independent tax ombudsman to ensure enforcement of tax payers rights. In India, tax ombudsman existed for both direct and indirect taxes earlier but were abolished in February 2019 as they were seen to be ineffective. Their decisions were only advisory in nature which is why they were abolished in 2019.
However, global experience suggests an ombudsman system is necessary for ensuring protection of taxpayer s rights, says the survey.