We all aware that income tax assessment was one of the complex tasks for individuals. Often, the taxpayers have to face abuse from tax authorities. To make this process straightforward, the government has begun a faceless income tax assessment for the sake of such assesses.
The faceless tax assessment system was launched on the 13th of august on by the Hon'ble Prime Minister during the launch of the "Transparent Taxation – Honoring the Honest" program. The finance minister Nirmala Sitaraman speaks that using the faceless assessment will lead to reducing tax evasion, "We are bringing in tax transparency through law because it is extremely important for the country,".
CBDT also commented by saying, "All I-T appeals will be finalized in a faceless manner under the faceless ecosystem except for appeals relating to serious frauds, major tax evasion, search matters, international tax, and Black Money Act related cases,". The apex authority also announced that the entire process of appeals would be online under the faceless assessment system, from now on, in income tax appeals, all from e-allocation of appeal, e-communication of notice/questionnaire, e-verification / e-inquiry to e-hearing and eventually e-communication of the appeal order,
Previously, if there was a mistake in the return, the assessee had to visit the I-T department office, and the same was the case if there was a disagreement with a law. For such faceless tax evaluations, this scheme will be useful.
There are currently over 4.6 lakh appeals pending before I-T Commissioners, and more than Rs 5.6 lakh crore is the sum locked in dispute. Approximately 88 percent of these cases will be submitted to the new system of Faceless Appeal or assessment involving 85 percent of the Commissioners' (Appeals).
To smoothen the entire process of the faceless system, The CBDT established 30 assessment centers under the faceless assessment scheme. For the establishment of these 30 assessment centers, 20 cities have been chosen.it also set up the below centers and units and specify they are respective:
National e-Assessment Centre: Formed to encourage e-assessment and monitor it centrally.
Regional e-Assessment Centres: established Under the authority of the regional Principal Chief Assessment Commissioner.
Assessment units: formed for the identification of points or problems, materials for the assessment, and any responsibility like reimbursement, review, and other functions.
Verification units: formed to inquire, cross-verify, review books of accounts, witness and document statements, and other functions.
Technical units: formed to Professional assistance, including any assistance or guidance relating to legal, accounting, forensics, IT, valuation, audit, transfer pricing, data analytics, administration or any other professional matter.
Review units: formed to review the proposed evaluation order, to verify whether the facts, relevant information, and legal and judicial decisions were taken into account in the upcoming draft,
Finally, we can see it, there are various advantages of a faceless tax assessment. Honest taxpayers will be relieved by the latest appraisal system. Usually, The tax department and officials will take bribery in the previous assessment scheme, but in the faceless assessment, it would be easier for honest taxpayers to send their tax returns directly without any contact between Tax officials. This helps in eradicating the chances of bribery and smoothes the entire process. We can finally assume that this is one of the government's leap measures to make the tax system payers friendly.
