The Union Cabinet chaired by Prime Minister Narendra Modi has approved the proposal for Abolition of Institution of Income-Tax Ombudsman and Indirect Tax Ombudsman.
The approval comes in the wake of alternative complaint redressal mechanisms chosen by the public and the institution of Ombudsman could not prove to be more effective than regular existing parallel channels of grievance redressal, both the institutions of Income-Tax Ombudsman, as well as Indirect Tax Ombudsman, have been abolished.
The Institution of Income-Tax Ombudsman was created in the year 2003 to deal with grievances of public related to the settlement of complaints relating to Income Tax. However, the Institution of Ombudsman failed to achieve its objectives. It was observed that institution of new complaints has in turn fallen to single digits. Also, taxpayers started preferring alternate methods of grievance redressal like CPGRAMS (Centralized Public Grievance Redress and Monitoring System), AaykarSevaKendras etc. further, it was also decided in 2011 to close vacant offices of Indirect Tax Ombudsman.