A Tax Council should be set up to develop a common tax policy, analysis and legislation for both direct and indirect taxes.

A Tax Policy Council is constituted vide order dated 2.2.16.

Common Tax Policy and Analysis (TPA) unit. The existing TPL in CBDT and TRU in CBEC should be subsumed in the common TPA.

Tax Policy and Research Unit is constituted vide order dated 2.2.16.

There should be a dedicated organisation for delivery of taxpayer services with customer focus for each of the Boards.

A dedicated vertical for delivery and monitoring of Taxpayer Services has been set up in CBDT, its attached Directorates and at field offices.

Pre-filled tax returns should be provided to all individuals.

The TARC recommendation regarding pre-filling tax returns has already being implemented in the most comprehensive manner as is feasible. This is an on-going process.

There should be a system for online tracking of dak/grievances/applications for refund etc.

The mechanism for online tracking as suggested is already present in the Sevottam Software in use in Aayakar Seva Kendra (ASK Centre).

Continuous benchmarking of tax administration vis-à-vis TPS?

The benchmarking of Tax Payer Services is an ongoing process.

There should be one Knowledge, Analysis and Intelligence (KAI) centre for both the Boards

The CBDT has taken several steps to enhance its analytical capability under Project INSIGHT by setting up an integrated Data Warehousing and Business Intelligence (DW&BI) platform

Both the Departments should shift all the key operations to the digital platform

In recognition of its e-Governance initiatives, the CBDT was conferred “Prime Minister's award for excellence in Public Administration ? for “Easy Tax Compliance through Quality Service? on 21st April, 2015.

A comprehensive performance management system needs to be set up for tax administrations by revisiting and reconstructing the RFD.

CBDT develops a detailed annual action plan for its field formations and RFD for its attached directorates.

The performance appraisal process needs to be made more wholesome and reliable

The current performance appraisal system is as per the guidelines of the Government.?

A formal mentorship programme may be set up, with carefully selected mentors.

National Academy of Direct Taxes has set up a mentorship framework in the Income Tax Department, for the newly recruited Indian Revenue Service Officers.

Code of ethics needs to be developed

The Conduct Rules for officers of Government of India prescribe a code of ethics to be followed by all organized services of the Government including the Income tax department.

The provisions of Rule 56(j) of the Fundamental Rules should be effectively utilised for weeding out officers who are inefficient or of doubtful integrity. The criterion for review should be changed to completion of 20 years of service.

Instructions have been issued for review as prescribed under Rule 56 of Fundamental Rules.

No cognizance should be taken of anonymous complaint

CBDT has issued specific guidance notes.

Retrospective amendment should be avoided as a principle.

This has been stated by the Finance Minister.

Dispute management should be a functionally independent structure with adequate infrastructural support.

The dispute management apparatus within the department is functionally independent. Necessary infrastructure has also been provided.

Appeals to high courts and the Supreme Court should only be on a substantial question of law.

This is already a part of the statutory provisions.

Promote e-payment.

Taxpayers can pay through net banking or through ATM. The main reason for non-acceptance of payment using credit card is the merchant charge levied by credit card companies which may not be acceptable to taxpayers.

Single return for IT and WT.

Wealth tax has since been abolished.

The number of taxpayers should be considerably more than it is at present.

Various Reports have indicated that the taxpayer base is commensurate with the current stage of development of the economy particularly considering that there is no income tax on agricultural income.

Taxpayers keep waiting for amnesty schemes

There is no proposal for any tax amnesty.

Timely clarificatory circulars can substantially reduce disputes and litigation.

This is an on-going process.

TARC Recommendation

Status

Disputes must get resolved in the times lines as mentioned in the respective enactments. The law should also prescribe the consequences of not adhering to the time lines, which would be that the case in question would lapse in favor of the taxpayer.

The suggestion that cases should lapse for delay in adjudication cannot be accepted because in that case the parties will get the matters delayed in the course ?of adjudication to get benefit of this provision. [The Bombay High Court in the case of Lanvin Synthetics Pvt. Ltd. 2015-TIOL-1668-HC-MUM-Cus quashed a Show Cause Notice that was lying un-adjudicated for 17 years.]

An easier and simplified scheme should be introduced for service exporters.

Circular No. 187/6/2015-ST dated 10.11.2015 lays down a scheme for speedy dispersal of pending refund claims of exporters of services under Rule 5 of the CENVAT Credit Rule, 2004.

Departmental manuals should be annually updated and put up on the website for easy downloading by both taxpayers and tax officers.

Already such manuals have been developed and placed on the CBEC website. [Except, of course, that the Central Excise Manual of CBEC's Instructions- Supplementary Manual is eleven years old]