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