Finance Minister Nirmala Sitharaman on Wednesday (August 21, 2024) asked tax officers to use simpler words in notices or letters they sent to taxpayers and exercise power bestowed upon them judiciously.
Addressing the 165th Income Tax Day celebrations, Ms. Sitharaman said that after adopting the faceless regime, the tax officers must now aspire to be more “fair and friendly” in their dealings with taxpayers.
The tax notices should not trigger a “sense of fear” among the taxpayers and instead, it should be simple and straightforward, she added.
The notice should make it “crystal clear” to the assessee the reason for which a notice was being sent to him/her, the minister noted.
Ms. Sitharaman also said there was room for improvement in issuing refunds faster.
Asking taxmen to avoid “ham-handed ways” in dealing with taxpayers, the minister said that the action taken should be proportionate to the issue at hand.
She also asked taxpayers to use enforcement measures only as a last resort, and the goal of the department should be to encourage voluntary compliance.
The minister also underlined that when she says that the tax department should be more friendly and transparent, it does not mean that the tax officers were unfair all these years.
“Can we explore issuing simple and easy-to-understand notices? Explain the reason behind why the action was taken and why the notice was being sent,” Ms. Sitharaman said.
Stating that she would stand with the tax department, the minister said that tax officers should continue to perform their sovereign duties.