Setting the basics right

Ever since the day 1 of assuming the office of Prime Minister of India, PM Narendra Modi has marked his tenure with various reformative coups which has at regular intervals laid the foundation of the setting the financial basics for the country in the right manner.

 

On Thursday, PM Modi unveiled the new tax reform with an objective of bringing absolute transparency in the taxation sector, where honoring the honest taxpayers was at the paramount of focus.

 

While this reform titled as ‘Transparent Taxation: Honoring the Honest’ brings a series of tax laws in the system aimed at simplification of tax filing and help taxpayers, however, most importantly it focuses on completely eradicating the “Officer Raj” system in the establishment.

 

The entire tenure of Modi government since 2014 is marked by setting the basic right in every aspect. From foreign policy of the government to maintaining the foreign reserves, from giving legal security to people of this nation by rewriting various rules and regulations to securing the boundaries of the nation, the Modi government has excelled in setting the right direction for the country.

 

As far as these new tax reforms are concerned, Modi government’s priority of establishing a firm financial direction for the country in all ways can be traced right from the commencement of the Modi government’s tenure.

 

The very first cabinet meeting of the Modi government decided on setting up a Supreme Court monitored SIT (Special Investigation Team). The scrapping of high denomination notes certainly mitigated the exchange of cash transactions and has put an indispensable importance on the role of banks. This leads me to highlighting the significance of another such scheme named ‘Pradhan Mantri Jan- Dhan Yojna’ that enabled a huge number of fellow citizens to open bank accounts, the benefits of which are evident in the current times of COVID-19 crisis.

 

Be it the Renegotiation of Tax Treaties and Automatic Information Exchange Agreement, to The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act or Income Disclosure Scheme to Tax Collection at Source on Cash Sales exceeding Rs2 lakh, The Modi Government has surely exhibited its honest will and a thought out action plan to battle the issues faced by the country’s financial sector.

 

The Modi government brought changes in the banking laws, resolved the issue of twin balance sheets, successfully tackled the predicaments of the NPA’s while successfully introducing insolvency and bankruptcy. Further with the introduction of the GST, the average tax rate of 24 % went down to 18%. What has come as a major relief to the Indian taxpayers, the government in the last six years has not hiked the income tax rates. To the contrary, the government has given major relief to the honest taxpayers.

 

Prime Minister Narendra Modi with his decision has explicitly exhibited one thing that he trusts his honest taxpayers. While doing so, the Prime Minister Modi has decided to set the things right, from the very basics.

 

At times his decisions do imply the saying of ‘Bitter the medicine, Better the cure’. However, the honest taxpayers have always supported PM Modi’s decision because they know that only PM Modi has their best interest in every decision that has been taken by the government. PM Modi has appealed to the nation to be honest taxpayers and has got a significant response as well, because the nation today knows that the Modi Government believes in ‘Honoring the Honest’.

 

PM Modi has always emphasized on ensuring minimum government and maximum governance. True to his words, while earlier PM Modi successfully removed the license raj, now with these reforms PM Modi aims at complete eradication of the Officers Raj.

 

The big reforms such as faceless assessment, faceless appeal, and taxpayers charter marks a major transformation, the benefits of which will be cherished by many more generations to come.

 

With these reforms the taxpayer can now be absolutely assured of a fair and rational behavior from the IT officers. The common practices of few officers in the department which were an open secret so far, will now completely cease to exist.

 

In these reforms, the taxpayer has been given the right to appeal, thus dignifying the honest taxpayer in a significant way.

 

In the old system, there was often a huge fear amongst taxpayers in appealing against the Income Tax department’s decision as they feared a potential retaliatory action. However, with these new reforms, these appeals will be transferred randomly to other officials from anywhere in the country. In addition, even the identity of the official will now remain anonymous.

 

Decisions like these have in a massive way have infused a sense of security and trust for the Modi Government amongst the honest taxpayers. Reforms like these will verily bring in a transparent, efficient and an accountable tax administration.

 

As very rightly said by Prime Minister Narendra Modi, in the past 6 years, India has witnessed the evolution of a new governance model in tax administration. The government has decreased the complexity, taxes, litigation, and increased – transparency, tax compliance, and trust on the taxpayer.

 

Ever since 2014, Prime Minister Narendra Modi has always focused on making India as one of the fastest growing economies. From being positioned at the 11 th rank in the past, India has emerged as the top 5 fastest growing economies in the world. This is nothing but the consequence of the successful policies of the Modi government which has completely whitewashed the policy paralysis era of the previous UPA governments.

 

There was a time when the honest people of this country always complained about the foundation of many policies of the nation being incorrect. The very same people today take pride in saying that Prime Minister Narendra Modi is now successfully setting the very basics right.