Ministry of Finance to hold seminar on improving taxpayer services in Mokokchung district

The Ministry of Finance, through the Department of Revenue, is set to conduct a seminar under the banner “NER Converses” aimed at enhancing taxpayer services as part of its Transparent Taxation initiative.

In compliance with a directive issued by the Office of the Principal Chief Commissioner of Income Tax, North Eastern Region (NER), Guwahati, a seminar is scheduled to take place in Mokokchung district on 29 July 2024.

The event, titled “NER Converses,” will commence at 10:00 AM at the Deputy Commissioner’s Conference Hall, and aims to engage stakeholders in discussions on improving taxpayer services. All Head of Departments (HoDs) in Mokokchung district have been instructed to ensure their Drawing and Disbursing Officers (DDOs) attend the event. Furthermore, outpost Administrative Officers and representatives from Civil SOciety Organizations (CSOs) and the Private School Association are also expected to participate.

Why is this seminar essential?
According to the Deputy Commissioner of Income Tax, S Sadananda Singh, IRS, the decision to organize this seminar stems from several critical issues faced by taxpayers across Nagaland, including:

Lack of awareness on exemptions: Many individuals eligible for income exemptions under section 10(26) of the Income-tax Act, 1961, are unaware of the procedure to obtain “No deduction and/or Lower deduction Certificates” through online applications. Additionally, they lack knowledge about the conditions for claiming such exemptions.

Non-Compliance challenges: Due to inadequate awareness of their duties and obligations under section 10(26), numerous taxpayers fail to respond to notices issued under the Faceless regime (sections 143(2)/142(1)). This often results in substantial demands being raised during scrutiny assessments, where orders may proceed ex-parte due to non-compliance.

Refund issues: Many Scheduled Tribe (ST) individuals are unaware that they must file income tax returns under section 139(1) to claim refunds. Consequently, there has been an increase in applications seeking condonation of delay under section 119(2)(b) for filing belated returns and claiming refunds.

Deduction and collection of Tax: Several deductors are unfamiliar with the provisions for deducting or collecting taxes and filing statements under TDS/TCS regulations. This leads to challenges such as incorrect filing or non-filing of statements, resulting in demands against deductors or collectors.

Communication challenges: The department often issues preliminary notices under the “e-verification scheme” to taxpayers claiming exemptions under section 10(26). However, many taxpayers either fail to respond adequately or overlook these notices, leading to statutory notices under section 148 for reopening cases.

Procedural issues: Many taxpayers face difficulties related to obtaining PAN, TAN, correcting PAN data, linking PAN with Aadhar, filing income tax returns online, filing rectification applications, etc. Often, outdated email IDs and contact numbers lead to notices being unnoticed, complicating compliance and resulting in adverse actions.

To address these issues comprehensively, the seminar will cover topics such as filing income tax returns, exemptions under section 10(26), PAN-Aadhar linking, compliance with notices, and filing appeals. The agenda aims to educate attendees, including government officials, new entrepreneurs, startups, deductors, business organizations, NGOs, and others, on navigating tax-related challenges effectively.

The seminar, scheduled to commence at 10:00 AM and conclude by lunchtime, will be inaugurated by Chaitali Panmei, IRS (1987), Principal Chief Commissioner of Income-tax, NER, Guwahati. Senior officers from the department and expert speakers will also participate, offering insights and guidance on various tax-related matters.

The Income Tax Department has therefore urged all concerned entities and government officials to participate actively, ensuring maximum benefit from this educational initiative.

MT