Finance Minister Nirmala Sitharaman has urged income tax officers to use simpler language in their communications to ensure that notices do not instil fear among taxpayers. Speaking at the 165th Income Tax Day celebration, Sitharaman noted the need for clarity and transparency in tax-related interactions.
She advised tax officers to avoid taking "disproportionate" enforcement actions and to reserve such measures as a last resort. "The powers you are entrusted with should be used judiciously," Sitharaman said, adding that taxpayers should not face undue harassment. She encouraged tax officers to clearly explain the reasons for any notices issued and to present their side in a manner that is easily understandable to the average taxpayer.
The minister stressed the importance of using simple language in tax notices, free from technical jargon, so that taxpayers can comprehend the content without confusion. "The communication should not be convoluted but simple enough for everyone to understand," she said.
The finance minister also made it clear that the tax department's role is not to create fear but to collect what is legitimately owed in a "fair and friendly manner" while promoting voluntary compliance. Sitharaman highlighted the importance of building trust between tax authorities and taxpayers, urging officers to refrain from using heavy-handed tactics.
She also pointed out areas for improvement, particularly in speeding up the process of issuing tax refunds. "There is room for improvement in the way we handle refunds," she said, adding that transparency and fairness should remain key principles in all tax-related dealings.
In closing, Sitharaman reiterated her support for the tax department while reminding officers of the importance of fairness and integrity in their work. "You have the powers to perform your duties, but these must always be balanced with fairness," she added.
The minister called on the department to make tax compliance more approachable and less intimidating for taxpayers, while ensuring that the system remains efficient and transparent.