{"id":65130,"date":"2020-09-07T19:00:43","date_gmt":"2020-09-07T13:30:43","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=65130"},"modified":"2021-03-26T18:23:48","modified_gmt":"2021-03-26T12:53:48","slug":"7-pm-editorial-boosting-voluntary-tax-compliance-through-reforms-7th-september-2020","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/7-pm-editorial-boosting-voluntary-tax-compliance-through-reforms-7th-september-2020\/","title":{"rendered":"7 PM Editorial |Boosting Voluntary Tax Compliance through reforms| 7th September 2020"},"content":{"rendered":"

Good evening dear reader.<\/p>\n

Here is our 7pm editorial Summary for today<\/p>\n

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About 7 pm Editorial Summary \u2013 This initiative provides an in-depth analysis of the important news editorial of the day. Students don\u2019t need to look anywhere more for their daily news analysis. We take the most important editorial of the day and provide its comprehensive summary.<\/em><\/span><\/p>\r\n

For 7pm Editorial Archives Click HERE<\/a> \u2192<\/strong><\/span><\/em><\/span><\/p>\r\n<\/blockquote>\n

Boosting Voluntary Tax Compliance through reforms<\/h3>\n

Overview \u2013 Compliance\u00a0 Tax<\/b><\/strong>\u00a0in taxation and evaluation of the reform measures taken by the Government.<\/b><\/strong><\/p><\/blockquote>\n

Introduction:<\/b><\/strong><\/h5>\n

Tax Collections will be severely hit because of the economic contraction caused by the COVID-19 pandemic. With a shrinking tax base, any calibration of rates or the tax base is difficult since a hurried approach can have wider consequences. So, it seems that the government needs to maintain its tax base through voluntary compliance. Historically, India is achieving compliance tax\u00a0 to taxes through a fine balance between enforcement and encouragement. However, the tax base has remained stagnant at around 6%<\/b><\/strong>\u00a0of the population. Thus, the only way to boost collections is to build trust between the administration and the taxpayer.<\/p>\n

Tax Compliance and the Importance of Trust:<\/b><\/strong><\/h5>\n

Tax Compliance\u00a0 tax is a function of the perception of the administration. Perceived complexity can discourage individuals from filing returns. There is a 20% gap between taxpayers and returns filed which reflects complexity of the tax regime<\/b><\/strong>. With the lower withholding rate this year on certain incomes, it is important that taxpayers file their returns on time so that the government can meet its expenditure duties.<\/p>\n

How can this trust be built?<\/b><\/strong><\/h5>\n

The government has announced measures to usher in transparency in the system. This includes changes in the taxpayer\u2019s charter<\/b><\/strong>\u00a0and faceless assessments<\/b><\/strong>.<\/p>\n

Evaluation of the Measures:<\/b><\/strong><\/h5>\n