Why in the news?

  • The India Posts introduced the DHRUVA framework.

DHRUVA Framework

  • Expansion of Abbreviation: DHRUVA stands for Development of Harmonized Rules, Understanding, Verification & Assessment.
  • What is it?: It acts as a unified framework for monitoring, assessing, and enforcing tax rules across indirect and direct tax systems to standardize and improve tax administration, enhance compliance, and ensure transparency.
  • Nodal Ministry: Initiative by the Department of Revenue, Ministry of Finance
  • Key Components:
    • Standardization of tax rules to remove ambiguity- leading to reduced litigations.
    • Clear categorization and classification of taxpayers.
    • Data analytics–driven verification of taxpayer profiles- Cross-verification using GSTN data, Income-tax portal and Financial intelligence databases.
    • Objective, digital, and faceless assessment to reduce harassment and corruption.

Source: The Hindu