The Chairman of the Central Board of Direct Taxes (CBDT) has instructed tax officials to prioritise 'guidance over intimidation' when dealing with taxpayers, encouraging a responsible, responsive, and transparent approach. This directive aligns with the department's shift towards supportive services and leveraging technology for non-intrusive tax administration. A new strategy, acronymed 'PRUDENT', has been introduced to guide officials in their work, emphasizing professionalism, understanding businesses, dedication, effective enforcement, non-intrusive methods, and technology.
The income tax department should do everything possible to be seen as "responsible, responsive and transparent," besides adopting a policy of 'guidance over intimidation' when dealing with taxpayers, the CBDT chairman has said. On the 164th anniversary of direct tax administration in India, Ravi Agr
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FAQ :
The CBDT Chairman has directed tax officials to adopt a policy of 'guidance over intimidation' when dealing with taxpayers, aiming to be seen as responsible, responsive, and transparent.
PRUDENT is an acronym representing a blueprint for tax officials, standing for Professionalism, Responsible and responsive field formations, Understanding transactions, Dedication and due diligence, Effective enforcement, Non-intrusive administration, and Technology-based tax administration.
The tax department is shifting its focus from being largely an enforcement or adversarial institution to one providing 'supportive services' to help assessees maintain compliance through non-intrusive methods, aided by technology.
Technology, including deep analytics and artificial intelligence, is crucial for identifying potential cases, but the handling of these cases should prioritise guidance with empathy. A third-generation, tech-enabled tax administration is emphasised for process simplification and enhanced taxpayer ease.
Non-intrusive governance aims to foster a friendly relationship with taxpayers, encouraging compliance with tax laws and procedures through 'nice nudges' rather than forceful methods.