In a groundbreaking revelation during the presentation of the Interim Budget 2024, Union Finance Minister Nirmala Sitharaman showcased the government’s significant strides in improving taxpayer services, particularly focusing on the reduction in the average processing time of Income Tax Returns (ITRs) over the past ten years.
Transformation in Tax Assessment:
Sitharaman emphasized the government’s commitment to innovation, transparency, and accountability within the tax system. A key aspect of this commitment has been the overhaul of the traditional jurisdiction-based assessment system, replaced with a faceless assessment and appeal mechanism. This transformation aims to streamline processes, ensuring efficiency and fairness in tax assessments.
Efficiency Boost through Initiatives:
Highlighting the government’s dedication to enhancing the taxpayer experience, Sitharaman outlined several initiatives implemented in the last five years. Notable among them is the introduction of updated income tax returns, a new Form 26AS, and prefilling mechanisms for tax returns. These measures collectively aim to simplify the tax filing process and contribute to a more user-friendly experience.
Remarkable Reduction in Processing Time:
A standout achievement highlighted by the finance minister is the remarkable reduction in the average processing time for tax returns. Sitharaman stated, “Introduction of updated income tax returns, a new Form 26AS, and prefilling of tax returns have made filing of tax returns simpler and easier. Average processing time of returns has been reduced from 93 days in the year 2013-14 to a mere ten days this year, thereby making refunds faster.”
Budget 2024 Impact and Outlook:
The Interim Budget for 2024-25 is regarded as an economic manifesto for Prime Minister Narendra Modi’s ruling party, offering insights into fiscal consolidation, borrowings, and future taxation policy. Analysts note that the budget strikes a balance between various sectors while maintaining a focus on fiscal consolidation. Sitharaman’s unveiling of the decade-long transformation in tax assessment reflects the government’s commitment to adapt and enhance taxpayer services for a more efficient and responsive system.
Stay tuned to Magadh Today for comprehensive coverage and analysis of Budget 2024, providing real-time news alerts and insightful newsletters.
