Paying income tax on time is a crucial responsibility for every taxpayer, but the process can sometimes be intimidating due to the approach of tax officials. Addressing this concern, Mr. Ravi Agrawal, Chairman of the Central Board of Direct Taxes (CBDT), has called for a shift in how income tax officials interact with taxpayers. He emphasized that officials should adopt a more supportive and advisory role rather than relying on intimidation.
Speaking during an online video session titled “The Chairman Speaks,” held on the occasion of Income Tax Day on July 24, Agrawal highlighted the importance of transparency and responsible guidance in tax administration. He urged officials to embrace a lighter and more approachable demeanor, especially as the income tax system in India marks its 164th anniversary.
Agrawal noted that the income tax system has undergone a significant transformation, with advancements in technology, an expanding taxpayer base, and a shift from a predominantly enforcement-focused department to a service-oriented one. This new approach aims to facilitate tax compliance through non-intrusive methods.
The Chairman also highlighted the growing success of the income tax system, citing that revenue from direct taxes has been steadily increasing. For the financial year 2023-24, around 650 million PANs were registered, and more than 85 million Income Tax Returns (ITRs) were filed.
Reflecting on the role of tax officials, Agrawal stressed the importance of professionalism in serving both citizens and businesses. He aligned this approach with the broader vision of “Viksit Bharat by 2047,” set forth by the Prime Minister, and the beginning of “Amrit Kal.”
The financial year 2023-24 witnessed a remarkable increase in direct tax collections, with provisional figures indicating a net collection of Rs 19.58 lakh crore. This achievement underscores the effectiveness of the evolving tax administration system, which is increasingly focused on service and compliance rather than enforcement alone.
