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Tax Ombudsman needed to protect tax-payer's rights: Eco Survey


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. ....

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