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Pillars Of Strength That Define A Simpler Tax System Process For 2023

As Taxpayers, you are aware of the struggles when it comes to understanding income tax slabs, GST slabs, etc. Understanding the tax system can never be easy. But if you approach it with a simpler process, the chances of understanding the tax world would be better.

Understanding the tax system

So, what would a simpler tax system look like?

This blog will be your guide to help you answer this question better.

What Makes A ‘Simpler Tax System’?

Tax can be simple for taxpayers if the four pillars of strength come into picture.

There is always a way to conduct complex processes. You just need to find a simpler version to conduct the former.

Here are four ways that can contribute toward a simpler tax system at the moment:

1. Having Clarity

The number one way to simplify a tax system is to have transparency. How many times have you, as a taxpayer, missed out on a few things during tax filing? The top reason being you were unable to see through the tax complexity process.

A simple tax process can help any business to file taxes better. With transparency, companies would be able to understand their next tax step. Let’s understand this with an example.

When the GST bill was passed, there was a time period of three months from the date announced. So with the tax regime in hand, neither the taxpayers nor the collectors knew what had to be done.

The result?

More confusion that led to multiple errors and penalizing of individuals who knew nothing. Thus, a simplified tax system will only be possible if good clarity of the tax processes is conducted.

2. Be Stable

The second factor that contributes towards a more straightforward tax system is stability. How many times have income tax rates been changed? Wouldn’t it be better if these rates and slabs were constant? This would give businesses to help plan ahead incase of any further changes. Let’s understand this with an example:

simple tax process

A restaurant charges normal taxes. So what happens when you change the tax rates quite often?

Say that one day you pay $11, next time your bill is $32, and then, later on, it is $9. Wouldn’t it be inconvenient for restaurant owners to change their menu every time? This is the difficulty that takes place when income tax rates continue to change or remain unstable. There is no harm in conducting practices to see what will work. But you must keep in mind that start slow and change only if required.

3. Analyse Money Management

How can tax GST collections continue to increase?

When GST was introduced, taxpayers analyzed its pros and cons. The government has to conduct multiple actions once all the tax is collected. All the money will go into paying salaries, setting up infrastructure, etc. ‘ On the other hand, taxpayers would pay chartered accountants a fee to conduct their tax filings.

In both cases, the usage of money is high. It would be better if both parties were able to analyze their money management.

The transaction of this money could reduce so that both parties can benefit highly. For instance, the government could save tons of money. Also, taxpayers could increase their purchasing actions or take a break from setting high prices for consumers.

4. Providing Convenience

Lastly, the next step is providing convenience. Now that you’re aware of GST collections let’s move forward. A more straightforward tax system should be able to provide a convenient action to all taxpayers.

Recently, Mr. Nithin Gupta, Chairman of Central Board of Direct Taxes, introduced a convenient action. “We are trying to make ‘Faceless Scheme’ a success. We have issued Standard Operating Procedure for our officers. We are making video-conference facilities available to taxpayers.’’

Many taxpayers struggle when it comes to filing taxes. The top reason being they don’t have enough time to understand and do the same.

Giving time ensures taxpayers are aware of what has to be done. This helps them align their tax actions better. This also eliminates any room for error. For those entering into the tax world, understanding GST slabs, etc., would be difficult. Thus when you provide enough time for them to understand the process, filing taxes becomes simpler.

Filing taxes doesn’t have to be a difficult and tedious process with Diligen. Our experienced team is aware of what has to be done. From helping you file taxes to determining your taxes, we do it all.


For taxpayers, the season of tax brings about a sense of frustration and confusion. Having a simpler tax system process could change the way we view GST slabs or income tax rates today. Nonetheless, we are slowly moving to a simplified tax process with the introduction of GSTs, etc.

If you wish to seek help regarding your tax filings, details on GST collections, etc., Diligen is here to help. You can schedule a call with us right away by heading here.

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