The Ministry of Finance, in a bid to ease the process of tax compliance, has launched distinct initiatives that have the motive to facilitate both the income tax and Goods and Services Tax (GST) procedures, for targeting small taxpayers.
Such measures simplify the tax filing, lessen operational complexities, and promote compliance among small businesses and retail investors. Minister of State for Finance, Pankaj Chaudhary, on 11th August 2025, addressed these measures in the Lok Sabha, showing the devotion of the government to make a taxpayer-friendly environment.
The Income Tax Department’s initiatives include the provision of multiple modes to submit the ITRs. The taxpayers have seamlessly submitted their returns online, offline, or via Excel utilities, accommodating diverse preferences and technical capabilities.
To ease the process, pre-filled data in the ITR forms consists of income details, tax payments, and other related data from documents like Form 26AS and the Annual Information Statement (AIS).
The GST portal improved with an auto-generated return feature, which gathers details of outward supplies based on data provided by taxpayers and their suppliers. Before submission, the same return could be modified, easing the process of filing. Taxpayers have the new option to revise the details of the outward supplies for the current tax period, offering greater flexibility.
For the composition scheme, the threshold limit under GST has widened from ₹75 lakhs to ₹1.5 crore, excluding certain special category states, permitting more small businesses to benefit from simplified compliance.
Payment methods have been expanded to promote cashless transactions, including digital options such as UPI and IMPS, thereby improving ease for GST payments. Obligatory registration for intra-state supply of goods through e-commerce operators (ECOs) has been waived by the government, facilitating the compliance load for the small businesses that are in the e-commerce sector since October 2023.
Fast-tracking application approvals to improve taxpayer services is also the main focus of the Finance Ministry. Applications authenticated through Aadhaar receive approval within 7 working days, while those that do not have such authentication are processed within 30 days. The same initiative has the motive to lessen the delays and surge efficiency in service delivery.
Read Also: Easy To Reduce GST Compliance Costs for Small Business
With the establishment of 457 Aaykar Seva Kendras (ASKs) across India, support services have been expanded. These centres assist with income tax and GST-related queries and grievances, ensuring ease for taxpayers to get the required support.
The government has also launched taxpayers’ hubs in Tier II and Tier III cities to enhance tax literacy and encourage voluntary compliance among small traders and rural entrepreneurs.
The Income Tax Department, while comprehending the taxpayer who encounters issues, has made instructional videos available on its official e-filing portal’s YouTube channel. The same tutorials navigate the users via submitting their returns and addressing queries, which makes the tax compliance accessible. To keep taxpayers informed of rules and procedures, the informative brochures are posted annually.
The Ministry of Finance, via such measures, has the motive to promote an environment that motivates participation among small taxpayers in the economy of India. The government, by easing the process, reducing compliance burdens, and expanding support, is looking to develop a more inclusive and efficient tax system.
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