Taxpayer’s Charter
[Section-240 as per the Income Tax Act, 2025 (this Act) w.e.f. 1st April, 2026.]
The Board shall adopt and declare a Charter for Taxpayers and issue such orders, instructions, directions or guidelines to other income-tax authorities as it considers fit for the administration of such Charter.
FAQs on Section 240 of Income Tax Act 2025
Here are the maximum possible FAQs based strictly on Section 240 of the Income Tax Act, 2025:
What is the main objective of Section 240 of the Income Tax Act, 2025?
The main objective of Section 240 is to mandate the Board to adopt and declare a Taxpayer’s Charter, which outlines the rights and obligations of taxpayers and ensures accountability and transparency in tax administration.
Who is responsible for declaring the Taxpayer’s Charter under Section 240?
The Central Board of Direct Taxes (CBDT), referred to as “the Board” in the Act, is responsible for adopting and declaring the Taxpayer’s Charter.
What is the legal status of the Taxpayer’s Charter?
Once declared by the Board under Section 240, the Taxpayer’s Charter holds legal authority as part of the Income Tax Act, 2025, and income-tax authorities are bound to act in accordance with it.
From when is Section 240 applicable?
Section 240 will be applicable with effect from 1st April, 2026.
Can the Board issue further instructions under this section?
Yes, the Board may issue orders, instructions, directions, or guidelines to other income-tax authorities for proper administration of the Taxpayer’s Charter.
Does Section 240 create obligations for income-tax authorities?
Yes, it obligates income-tax authorities to adhere to the Charter and any directions or instructions issued by the Board under this section.
What kind of content is expected in the Taxpayer’s Charter?
While the section does not specify content, the Charter is expected to include commitments to fair treatment, transparency, accountability, and respect for taxpayers’ rights.
Will taxpayers have any legal remedy if the Charter is not followed?
Although Section 240 mandates the Charter, specific remedies are not detailed in this section; however, taxpayers may use it as a basis to seek redress if their rights under the Charter are violated.
Is the Taxpayer’s Charter a one-time declaration or can it evolve?
The Board may revise or update the Charter from time to time as necessary for effective administration.
Does the Taxpayer’s Charter override other provisions of the Act?
No, the Charter is meant to complement and guide the administration of the Act, not to override its provisions.
