What is the Taxpayer’s Charter in India?

In the Taxpayer’s Charter, CBDT has enlisted the duties which the income tax department and it’s officials should fulfill to protect the interest of the taxpayers of the country. Further, the charter also states some common expectations to be fulfilled by the taxpayer.

It is a step towards bringing together rights & duties of the tax-payer and fixing the government's responsibilities towards the taxpayer

What are the duties listed in the Taxpayer’s Charter by Income Tax Department ?

The Income Tax Department shall be committed to -

  • Give Fair, Courteous, and Reasonable Treatment - the taxpayers should be treated fairly, promptly, and with dignity by the tax officials. This will further reduce the complaints & compliance escaping and will in turn build a trust factor between the taxpayer and tax administration.
  • Taxpayer to be believed as Honest - until there is reason to believe otherwise, prima facie the taxpayer should be believed, to be honest.
  • Impartial appeal and review mechanism - the duty to provide an impartial and fair environment for appeals or review shall rest with the income tax department.
  • Imparting of accurate and complete information - Income Tax Department shall provide correct information to help taxpayers in making legal compliances
  • Faster and time-barred assessment disbursal - the decisions of all proceedings with the department should be completed within the specified time frame
  • Collect only the actual IT dues - the collection of the amount within the legal purview shall only be made. No other grants should be accepted.
  • No intrusion to taxpayer’s privacy - the due process of law needs to be followed by the department and being intrusive must be strictly watched upon during any investigation, inquiry etc.
  • Maintenance of Confidentiality - no information pertaining to the taxpayer or found during the course of assessment shall be disclosed to any other person unless required under the law.
  • Fixing of Official’s Accountability - the department will hold its officials accountable for their wrong actions (if any).
  • Allow selection of a representative at one’s own discretion - income tax department shall give liberty to appoint an authorized representative of their choice.
  • The mechanism to lodge complaints and prompt disbursals - a mechanism for lodging complaints with the income tax department and taking action on the same on due basis should be made functional
  • Fair & Impartial system to resolve tax issues - tax issues should be resolved in an impartial and prompt manner.
  • Standards for service delivery and periodical reports - standards used for rendering service shall be reported periodically
  • Reduce compliance cost - while administrating the cost involved in the compliance; procedures should also be watched.

Which are some of the things expected from a taxpayer as per the Taxpayer’s Charter?

The taxpayer is expected to

  • Give true and complete disclosures and comply with the obligations - full and true disclosures to the best of taxpayers’ knowledge shall be made to the income tax department.
  • Be aware of compliance requirements - a taxpayer must be aware of all the compliances required to be made under the applicable act for the time being in force.
  • Maintain accurate records - it is the duty of the taxpayer to maintain proper and accurate documents, supporting the disclosures made.
  • Know the information submitted by their authorized representative - the taxpayer must be well versed with the information furnished or disclosures made on his behalf by the appointed representative.
  • Clear the statutory dues timely - statutory dues (if any) should be cleared within the stated time frame.
  • Act within the given timeframe - the compliances/submissions must be done within stipulated time and under the legal purview

Frequently Asked Questions

Q- Who is considered to be a taxpayer?

Ans. A taxpayer could be either an individual or a corporation who on the basis of their earning pay taxes annually as per the Income Tax Provisions.

Q- What does charter mean?

Ans. A charter is a written document which specifies the rights and privileges of citizens of a country or state.

Q- What is a taxpayer charter?

Ans. The taxpayer charter entrusts the Income Tax Department and taxpayers with basic roles and responsibilities to ensure smooth & transparent functioning, relation and mutual trust building.

Q- How many taxpayers are there in India?

Ans. With more than 6 crore tax filers only 1.5 cr pay taxes in India.

CA Abhishek Soni
CA Abhishek Soni

Abhishek Soni is a Chartered Accountant by profession & entrepreneur by passion. He is the co-founder & CEO of Tax2Win.in. Tax2win is amongst the top 25 emerging startups of Asia and authorized ERI by the Income Tax Department. In the past, he worked in EY and comes with wide industry experience from telecom, retail to manufacturing to entertainment where he has handled various national and international assignments.


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