The Impact of the Constitution on Your Tax Rights on Republic Day

The celebration of Republic Day in India isn’t just about national pride, but also has practical significance. The Constitution of India, enacted on 26 January 1950, contains important provisions that impact our tax-related rights and obligations. Whether it’s claiming deductions, interacting with tax authorities, or challenging arbitrary demands or incorrect refund adjustments, the Constitution plays a crucial role in empowering taxpayers.

For instance, Article 265 of the Constitution ensures that no tax shall be levied or collected except by the authority of law. This safeguard protects citizens from undue taxation and ensures that India’s tax system is fair. In the case of underclaiming deductions, taxpayers can reference Article 265 when making a representation to the income tax authorities, advocating for their rightful deduction.

Furthermore, in a predominantly digital tax environment, interactions between taxpayers and tax authorities, such as PAN registration, tax payments, and filing and processing of returns, are increasingly online. However, the Principle of Natural Justice, embedded in Articles 14 and 21 of the Constitution, ensures that taxpayers have the right to a fair hearing. This principle provides for equality and fair and reasonable legal procedures, allowing taxpayers to challenge adverse rulings and have a reasonable opportunity to be heard.

As we celebrate Republic Day, it’s essential to understand and appreciate the relevance of the Constitution in empowering us with essential tax rights. This understanding can significantly help us in our tax matters and contribute to a fair and transparent tax system in India.