The Income Tax Department in India has taken several measures to improve tax compliance and simplify tax administration.
The Income Tax Department is responsible for collecting income, corporate, and other direct taxes from individuals and businesses.
The Income Tax Department is governed by the Central Board of Direct Taxes (CBDT) and is part of the Income Department under the Ministry of Finance.
The Income Tax Department is responsible for administering and enforcing the direct tax laws in India, including the Income Tax Act.
The department is responsible for collecting income, corporate and other direct taxes from individuals and businesses.
The department also conducts tax audits, investigates cases of tax evasion and takes legal action against tax evaders. The department has a large network of offices and associates across the country, and taxpayers can file their tax returns online or through brick-and-mortar offices.
According to the Income Tax Department’s Taxpayer Charter, it expects the following six things from taxpayers;
- Be honest and docile: The taxpayer is expected to disclose all information fairly and to meet its compliance obligations.
- Be informed: Taxpayers are expected to be aware of their compliance obligations under the tax code and to seek help from the department if necessary.
- Keep accurate records: Taxpayers are expected to keep accurate records as required by law.
- Know what the rep is doing: The taxpayer is expected to know what information and comments have been submitted by the person’s authorized representative.
- Respond in a timely manner: Taxpayers are expected to file timely returns according to tax laws.
- Pay in time: Taxpayers are expected to pay the amount due by law on time.
The Income Tax Department in India has taken several measures to improve tax compliance and simplify tax administration. These include the introduction of electronic tax filing, mobile app for taxpayers, use of technology to detect tax evasion and the issuance of permanent account numbers (PAN) to individuals and businesses to track their tax payments.
Also Read: AIS for Taxpayer Mobile App: Now check TDS and other tax data on government’s new app
What is a PAN card?
The Permanent Account Number Card is a unique 10-digit alphanumeric identifier issued by the Indian Revenue Service. The PAN card serves as a unique identification number for individuals and entities in India for tax purposes.
PAN card is issued in the form of a laminated card, who applies for it or who the department assigns the number without application.
Why is it necessary to have PAN?
It is mandatory to indicate PAN in the declaration of income, all correspondence with an income tax authority. From January 1, 2005 it is mandatory to state PAN on challans for payments to the tax authorities.
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