NEW DELHI:  India’s Finance Minister Nirmala Sitharaman on Wednesday asked tax officers to use simple language in income tax communications so that notices do not instil fear in the minds of taxpayers. She underscored the necessity of using clear and simple language in IT notices to enhance understanding among taxpayers and stakeholders. 

During an interactive session with tax officials and representatives from various sectors,  on the occasion of the 165th Income Tax Day celebration, Sitharaman emphasized that the language used in notices should be straightforward and devoid of jargon. 

"Our goal should be to make tax compliance easier and more accessible for everyone. It is imperative that the notices issued by the Income Tax Department are written in a manner that is simple and easy to understand," she stated and also said taxmen should avoid "ham-handed ways" in dealing with taxpayers, the minister said tax officers must "trust the assessees".

She said, "You're rightly vested with adequate powers to perform your duties. But you should be conscious of using those powers judiciously, and it must not come at the cost of fairness and integrity," and added that there was room for improvement in issuing refunds faster.

This statement comes in the wake of growing concerns regarding the complexity of tax-related communications, which often leave individuals and businesses confused about compliance requirements. The Finance Minister's remarks resonate with a broader initiative aimed at improving taxpayer services and fostering a more conducive environment for compliance. By simplifying the language of official communications, the government aims to demystify tax processes and encourage greater participation from all sectors of society.

The FM while advising the income tax officers not to take 'disproportionate' action said the department must use enforcement measures only, as the last resort and advised tax officers should use "power judiciously".

Experts have welcomed Sitharaman's call for simplification, noting that clear communication can significantly reduce misunderstandings and disputes between taxpayers and the tax authorities. “Complex language often leads to misinterpretation of the law, which can result in unnecessary litigation and stress for taxpayers,” remarked a tax consultant who attended the session.