New Delhi. Finance Minister Nirmala Sitharaman on Wednesday asked tax officials to use simple words in notices or letters sent to taxpayers and use the powers given by the law judiciously. Sitharaman said at a function organized here on the 165th Income Tax Day that after the implementation of the faceless assessment system, tax officials should now focus on dealing with taxpayers in a more “fair and friendly” manner.
She said that tax notices should not create a ‘feeling of fear’ in the minds of taxpayers. She said that tax notices should be simple and clear. The minister said that the notice should make it very clear to the taxpayer for what reason he is being sent the notice. Along with this, Sitharaman said that there is scope for improvement in issuing income tax refunds quickly. The Finance Minister urged the tax officials to avoid adopting ‘irregular methods’ in dealing with taxpayers and said that their action should be proportionate to the issue.
She also asked taxpayers to use enforcement measures only as a last resort and the department’s goal should be to promote voluntary compliance. Along with this, Sitharaman said that her talk of making the tax department more friendly and transparent does not mean that tax officials were unfair all these years.
Sitharaman said, “Can we think of sending a simple and easy to understand notice? You should explain the reason why action was taken in the notice and why the notice is being sent.” Expressing her support with the tax department, the Finance Minister said that tax officials should continue to discharge their duties.