Friendly Tax Compliance FM Nirmala Sitharaman’s Vision for India
India’s Finance Minister Nirmala Sitharaman has once again emphasized the government’s commitment to friendly tax compliance. In recent meetings with tax officials and business stakeholders, she called for “minimal interface, maximum trust” – underlining the need for a system where taxpayers are treated with dignity, not suspicion.
In this blog, we decode what friendly tax compliance means for you, and how India is moving toward a more efficient, transparent, and taxpayer-centric system.
What Is Friendly Tax Compliance?
Friendly tax compliance refers to a simplified, transparent, and digitally-driven system where:
- Taxpayers face fewer hassles
- Authorities focus on facilitation, not just enforcement
- Trust-based systems replace adversarial scrutiny
Key Features of Friendly Tax Compliance
| Feature | Old Approach | New Friendly Approach |
|---|---|---|
| Scrutiny | Frequent, manual, sometimes arbitrary | Risk-based, faceless assessments |
| Documentation | Paper-heavy processes | E-verification and AI-based analytics |
| Refunds | Delay-prone and opaque | Timely with status tracking |
| Taxpayer Treatment | Presumptive suspicion | Presumptive honesty with safeguards |
| Support | Limited access to help | 24×7 helpdesks, grievance redressal |
Recent Moves Supporting Friendly Tax Compliance
1. Faceless Assessment Scheme (CBDT Circular No. 19/2020)
Reduces personal interface. Tax orders are passed through an automated, anonymous system.
2. Vivad se Vishwas and Amnesty Schemes
Offered one-time dispute resolution for taxpayers, especially MSMEs, without fear of penalties or prosecution.
3. Pre-filled ITR Forms (AY 2025–26 onwards)
Data from TDS, interest, capital gains, and salary auto-populated from multiple sources (CBDT + AIS/TRACES).
4. Unified Business Platform (MCA21 Version 3.0)
Company law compliance made simpler with predictive filings, AI-assisted reminders, and lesser duplication.
5. CBIC’s GST Amnesty Scheme under Section 128A (2025)
Allows defaulting GST filers (FY 2017–20) to regularize returns without full penalties – showing a shift to facilitation.
🔗 Read: GST Amnesty Scheme 2025 – Complete Guide
FM’s Latest Message: Compliance Without Fear
While addressing tax officers in June 2025, FM Sitharaman said:
“No business should be terrorised by the tax system. We must engage with taxpayers in a spirit of support and mutual respect.”
This vision aligns with India’s push to climb up Ease of Doing Business indicators and attract global investments.
Expert View: Tax Needs Tech + Trust
According to CA Ramesh Subramanian, tax expert at Efiletax:
“Compliance is no longer about just paying taxes. It’s about timely filing, using portals effectively, and maintaining clean records. The system is becoming more intelligent — so mistakes get flagged faster, but the good news is, it’s also more forgiving if you’re proactive.”
How Efiletax Helps You Stay Compliant – the Friendly Way
We simplify your entire tax journey:
✅ ITR Filing with Regime Optimisation
✅ GST Return Filing + Late Fee Amnesty Support
✅ MCA Compliance Reminders + Filing
✅ 24-hour expert chat support
FAQ: Friendly Tax Compliance in India
Q1: Is the faceless assessment process still active in 2025?
Yes. It is now fully operational under Section 144B of the Income Tax Act.
Q2: Will small businesses get relief in scrutiny?
Yes. Most scrutiny cases are now picked using risk parameters. Honest, regular filers face minimal scrutiny.
Q3: Can I request help if I make a filing error?
Yes. You can revise your return or use the grievance redressal tools on e-filing portals or through ERIs like Efiletax.
Summary
Friendly tax compliance is India’s new mantra. FM Nirmala Sitharaman is pushing for faceless assessments, digital filing, and taxpayer trust to simplify compliance and ease business operations in 2025.