FM Sitharaman Urges Tax Officials to Give Honest Taxpayers Opportunity to Correct Bona Fide Errors

Finance Minister Nirmala Sitharaman has urged income tax officials to give honest taxpayers opportunity to correct bona fide errors by adopting a more taxpayer-friendly approach, and distinguish between wilful tax evasion and genuine mistakes. The remarks came ahead of the deadline for income tax return filing approaching on July 31, according to a release by the Ministry of Finance.

Speaking at the 167th Income Tax Day celebrations in New Delhi on July 24,  Sitharaman emphasized that enforcement powers should be exercised with humility and fairness. She said taxpayers should be viewed as partners in India's economic growth rather than merely assessees.

She urged the income tax department to deepen voluntary compliance, further simplify the taxpayer experience, strengthen tax certainty, harness technology responsibly, reinforce public trust and embrace continuous improvement, according to the release. 

Meanwhile, Sitharaman also highlighted the enhanced capacity of the e-Filing portal, improved return processing, prompt refunds and significant progress in grievance redressal, while stressing that the income tax department must move beyond disposal of grievances to analysing recurring issues and preventing them through systemic improvements. 

Furhther, she underlined the importance of strengthening institutional capacity through modern infrastructure, technology and continuous investment in human capital. 

Arvind Shrivastava, the revenue department secretary of the finance ministry also emphasized the need to leverage technology while keeping taxpayers at the centre of reforms, the release said.

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