Don't use “threatening language” in tax notices: Sitharaman tells I-T Dept

New Delhi: Finance Minister Nirmala Sitharaman on Wednesday asked the officials of the Income Tax Department to simplify the language of notices and work towards being “fair and friendly” to the taxpayers.

Addressing an event to mark the 165th year of the Income Tax Department here, the Finance Minister said the officials should refrain from using “threatening language” in tax notices.

“Let the experience of filing tax return on the first day be as good as filing it on the last day. We have to ensure that threatening language in tax notices and messages is avoided,” FM Sitharaman said.

She also asked tax officials to be judicious in the use of power to ensure compliance, and not create fear among the taxpayers.

Emphasising the need to avoid “ham-handed ways” in dealing with the taxpayers, the Minister said that the action taken by the officials should be proportionate to the issue on hand.

The language used should be friendly and people should be invited to file their income tax returns, rather than being forced to comply, she added.

Stating that Prime Minister Narendra Modi has been “very clear from the beginning that we need to provide a simple system", FM Sitharaman asked the Income Tax Department to approach the taxpaying public with “more transparency and less intimidation".

The Finance Minister also said that within six months, there will be a new Tax Code or a new Income Tax Act aimed at reducing litigation.

The Tax code will be simplified in line with the three goals set by the Prime Minister, she said.

“The three goals -- seamless, painless and faceless -- will be kept in mind, as mentioned previously by PM Modi,” the Finance Minister said.

Stating that there is room for improvement in issuing refunds faster, she asked, “Can refunds go sooner rather than later?”

The Finance Minister also expressed happiness over the widening of the tax base, pointing out that as many as “58.57 lakh ITRs were received from first-time tax filers, which is a great achievement".

"I can see the tax net widening. I have a great word of appreciation for these first-time filers because we need such examples which will showcase to the world that India is a country which is getting more and more formalised, where people are getting on board and paying taxes,” she said.

The Finance Minister also congratulated the taxpayers for immensely contributing to the Indian economy, besides hailing the feat achieved by income tax officials in making highest-ever collections.

"The last 10 years were full of challenges for India and the tax officers. The collective effort of the taxpayers and income tax officials have led to the highest ever income tax collection,” she said.

The Finance minister also said that 72 per cent of all the taxpayers have moved to the new and simpler tax system.

IANS