What is new tax reform? How decision by Narendra Modi Government will help the common people?

The new tax reform is introduced today by the Prime Minister (PM) of India, Narendra Modi. The Prime Minister Narendra Modi has claimed that this tax reform will help the helpless and common people by making the taxation easy and faceless and by using the modern technology. 

He has said that the new taxation system will no need to pay tax or file the tax dispute including appeals with the face. 

When the tax officer and the person know each other then there is possibility of biasness towards calculating the tax or the tax rebate or the filing appeal. 

Sometimes the tax officers under the influence of other person or the organisation or any political party, they may be bias in negative toward person to harass the taxpayers or they may often to take decision to pay less taxes. All these things are happening in illegal manner. 

However, in the new proposed tax regime everything will be faceless and anonymous. 

Both the taxpayers and the officers will not know each other. Everything will be happening by using Artificial Intelligence (AI) and the new modern Information and Communication Technologies. 

The new tax reform 2020 led by Narendra Modi has also provision that the tax officer will be selected randomly by the computer generated process. And every file will have Document Identification Number (DIN) to trace and record which will further make all these processess more easy. 

This is important reform that the officer will be selected randomly, for an example if you are living in Delhi and filing some claim or complain then computer may assign you the tax officer from any place of India for an example from Andaman and Nicobar and vice versa. 

This will also help to integrate the nation. 

And from the taxation point of view, it will happen in anonymous environment, therefor there are more chances to end the dispute or claim according to the law and not according to the source, personal relations and pressures or even personal, institutional, or social biasness, and social prejudices. 

This tax reform led by Prime Minister Narendra Modi has claimed that the new tax system will have and serve these purposed - 

Decreased complexity

Decreased taxes

Decreased litigation

Increased transparency

Increased tax compliance

Prime Minister Narendra Modi has also claimed that first time in India the Rights and Duties of the Tax Payers are codified. 

Narendra Modi has that "our aim is to make the tax system: Seamless, Painless, Faceless."


Narendra Modi has also said that for him the meaning of reform depends on holistic policy and not in the parts. He emphasized that reform should be holistic and that should work as base for other reform. 

However, Narendra Modi also emphasized that the reform is not a one time work or static in itself rather it needs a continuous work according to the new situations. 

Prime Minister wrote on  Twitter that "Today’s decisions towards a simpler and transparent tax system are a part of our efforts to make the system people-centric and public friendly as opposed to being heavily power-centric. Efficiency, integrity and sensitivity are being rewarded."

He further said that this platform have Faceless Assessment, Faceless Appeal and reform for the Taxpayers Charter. 

The Faceless Assessment and Taxpayers Charter is implemented nation wide from today (13 August, 2020) itself. 

Prime Minister has emphasized that this reform which is launched today on 13 August, 2020 is the platform for “Transparent Taxation – Honoring the Honest” would be launched. This adds strength to our efforts of reforming and simplifying our tax system. It will benefit several honest tax payers, whose hard-work powers national progress. 

Please leave your valuable comments in the comment section. 

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Anil Kumar, PhD 

Student of Social Sciences 

Anil Kumar | Student of Life World 
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