‘Adopt guidance over intimidation while dealing with taxpayers’

New Delhi: Income-tax department officials should make renewed efforts to come across as responsible, responsive and transparent apart from undertaking an approach of “guidance over intimidation” while dealing with taxpayers, the CBDT chairman has said.

Ravi Agrawal, the head of the direct taxes administration body of the country, suggested a ‘PRUDENT’ approach to be followed by the taxmen as the income tax regime completed 164 years in India.

The Central Board of Direct Taxes (CBDT) chief recently spoke to his colleagues via an online video ‘Samvaad’ session — The Chairman Speaks — on the occasion of the 165th Income Tax Day that was observed on July 24.

He said the tax department has undergone “transformational” change, adopted technology in its processes, increased taxpayer base and that its orientation has changed from being largely an “enforcement and adversarial” department to largely a service department facilitating taxpayer compliance through non-intrusive tax administration.

Agrawal said revenue under the direct tax category has been growing and there were about 65 crore PANs and more than 8.5 crore ITRs were filed during 2023-24 fiscal.

“Our role as part of the tax administration is critical. It is incumbent on us to service the citizens as well as business with professionalism as we embark on our journey to fulfil honourable Prime Minister’s vision of ‘Viksit Bharat’ by 2047 and with the beginning of ‘Amrit Kal’, I take this opportunity to present an approach to be adopted by each one of us irrespective of rank in the department,” he said.

The approach, he said, has been encapsulated under the acronym PRUDENT and it will guide the officials as they continue to navigate the “complexities” of tax administration. Explaining the acronym PRUDENT, Agrawal said P stands for professionalism, R for being responsible and responsive, U for understanding transactions and businesses, D for dedication and due diligence, E for effective enforcement, N for non-intrusive administration and T for technology-based tax administration.