Income tax department launches new faceless e-assessment scheme

Income tax department launches new faceless e-assessment scheme

Income tax department launches new faceless e-assessment scheme: Income tax department first pilot project of “Faceless Tax Assessment” will take effect on 6th of October, 2019. With the launching of faceless e-assessment facility, all your income tax returns (ITR) would be assessed and scrutinized in complete electronic mode without any human interface.

Previous announcement for income tax department

Prime Minister Narendra Modi had told in an interview in August that the government would soon start anonymous assessment. And as announced by finance minister Nirmala Sitharaman in her Budget speech, the income tax department has started e-assessment.

Points Consideration

The existing system of scrutiny assessments in the income tax department involves a high level of personal interaction between the taxpayer and the taxman. This plan will not only curb corruption, bring transparency but also make it easier for you to respond to any income tax notice as everything will be online.

The income tax department has been running e-assessment as a pilot project in four major cities before expanding it all over India. With 60,000 taxpayers this project has been started in four metros and four large cities. Apart from four metros, the other cities are Pune, Bangaluru, Ahmedabad and Hyderabad.

What is the procedure of income tax E-assessment Scheme 2019

Here it is explain in very detail to understand it better Way

Income tax department launches new faceless e-assessment scheme

Top things to know about faceless e-assessment of income tax:

1) It is now mandatory for the taxman to make all communication with you online. Tax notices will be issued by a centralized e-assessment centre requiring taxpayers to reply only through digital mode. Through mobile app, real time alerts would be sent to assessee’s updating about progress in the case. However, in complicated matters the taxman may allocate a tax officer.

2) Faceless assessment and scrutiny of income tax returns eliminates the possibility of you knowing the tax officer dealing with your case. You might never get to know him as anonymity is maintained in processing your ITR.

3) Cases selected for scrutiny shall be allocated to assessment units in a random manner and notices shall be issued electronically by a Central Cell, without disclosing the name, designation or location of the assessing officer. The Central Cell shall be the single point of contact between the taxpayer and the Department. This new scheme of assessment will represent a paradigm shift in the functioning of the income tax department.

4) Moving to digital from the decades-old system of manual scrutiny, the tax department would use data analytics, artificial intelligence, machine learning and other latest tools to ascertain misreporting or evasion.

HOW IT WILL WORK

Now the major question came in everyone’s mind that how this “Faceless Tax Assessment” Will work. Below mentioned procedure will explain each and every question came in to mind. This procedure has been obtained from Income Tax Officials. This process will be followed by the Income Tax Officials and the assessee’s to complete the Scrutiny Cases for the Assessment Year 2018-19. Step wise information is given below:-

  1. The case will be selected for scrutiny at National E-assessment Unit.
  2. The National E-assessment Unit will issue notice u/s 143(2) of the Income Tax Act, 1961 to the assessee giving 15 days time to furnish the information in response of this notice.
  3. Assessee will reply to National E-Assessment Unit.
  4. After getting reply from the assessee, the National E-assessment unit will assign your case to the Assessment Unit (it can be anyone).
  5. After considering assessee’s reply filed in response to notices, the officers of Assessment Unit will take action in according to assessee’ case.
  6. After giving assessee’s several opportunity the case will be reassign to National E-assessment Unit, who can ask to further clarification or may be pass order Assessment Order and send to the assessee
  7. After passing the assessment order, the case will assign to your jurisdictional office for further
    • Penalty proceedings, if any
    • Recovery of demand outstanding
    • Rectification of mistake u/s 154 of the Income Tax Act.
    • Appeal effect proceedings in case of CIT(A), ITAT or High Court orders.
    • Submission of remand report in appellate proceedings.
    • Representation before appellate proceedings,
    • Launch of prosecution

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