New Delhi, Aug 22: 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.