'FACELESS' ONLINE ASSESSMENT SCHEME- INCOME TAX

'FACELESS' ONLINE ASSESSMENT SCHEME- INCOME TAX

No physical interface between taxpayer & Income Tax Department," as per the statement released by the Income Tax Department.


The Central Board of Direct taxes has introduced a faceless and completely electronic scheme of assessment which will be eliminating all human interfaces which in turn will enable the taxpayers to no longer visit the income tax offices for assessments.

"If anyone receives a scrutiny notice from the Income Tax Department, then they do not have to worry, as there is no need to go to the IT Office or meet any of the local Income Tax Officer; Just use the #FacelessAssessment Scheme & file the reply online.
 

No physical interface between taxpayer & Income Tax Department," as per the statement released by the Income Tax Department.

CBDT Chairman PC Mody told that the introduction of this faceless electronic assessment scheme will reduce the litigation processes and unnecessary Pant to the taxpayers. This will allow taxpayers and income tax officers to continue to work from home amid the current Covid-19 pandemic.
 


 

According to him India will probably the first country to introduce and implement such a scheme.

This faceless system will make the income tax compliance process much easier and will ensure the avoidance of unnecessary returns to the taxpayers. The taxpayers who receive income tax scrutiny or assessment notice will no longer be required to visit their jurisdictional tax offices for addressing the same.

Smt Nirmala Sitharaman, Finance Minister of India had announced about the faceless assessment scheme in her Budget speech last year on July 5, 2019, and it was then introduced on October 7, 2019.

So far 58319 cases had been assigned via this online system and out of those cases, 7116 cases stand disposed of using the faceless assessment scheme. This scheme comprises of setting up many units which ensure that the income tax demands or assessment notices get issued to the taxpayers only after the assessment review and proper verification at the draft stage only.

A separate technical unit assists the other teams in matters requiring legal or business-related expertise. The faceless assessment scheme ensures easier compliance as there is no requirement of physical visits which ensures faster processing.

The scheme is also beneficial to the income tax officers as it insures lower pendency in various litigation processes as the workload gets distributed amongst various teams.
 

Edited by Minu Mishra

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