The Central Board of Direct Taxes (CBDT) said that all Income tax cases will be examined up for scrutiny except those which are related to search and seizure along with international charges and can be assessed by Faceless Assessment Know about the government’s newly introduced faceless income tax assessment for providing relief to the taxpayers. Also, check its benefits and working process. read more. The CBDT which handles personal and corporate tax has said “all assessment orders shall hereafter be passed by National e-assessment Centre through the Faceless Assessment Scheme, 2019”, excluding those belonging to central debits and foreign tax cases.
The CBDT stated that it is done to assure that all the evaluation orders are carried through Faceless Assessment Scheme, 2019. Prime Minister Narendra Modi on Thursday revealed the official order announced by the CBDT is a portion of the implementation of taxpayers’ charter. “This order provides that the tax department will now onwards conduct only faceless assessments, except cases pertaining to central charges (essentially dealing with search and seizure cases) and international tax cases. This will substantially reduce interaction between taxpayers and tax authorities in assessment proceedings,”
This will boost the completion of assessment proceedings with faster speed by tax administrations because they will depend on the written submission filed by taxpayers instead of private meetings which consumes much more time. The case involved in search and investigation along with the international tax issues will not be assessed as facelessly as due to the slight complexity of issues might be involved in these issues, thus face to face interaction is necessary.
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“While, in principle, this is a welcome step taken by the government, still on the implementation side, it will be important how tax officers handling faceless assessments understand cases based on written submissions only and a lot will also depend on the quality of written submissions filed by taxpayers,” The wrong adjustments and prosecution of future tax aroused due to the absence of the clear and to the point submission “So, both tax authorities and taxpayers need to be extra careful.”
In the assessment of faceless scrutiny, the central network chooses up the Income-tax returns for scrutiny on risk and mismatch and randomly provides them with the team of the officer. The allocation is evaluated by the officers at other locations selected only if a concurred centralized computer system sends the notice.
These notices have to be responded electronically and not via visiting the tax offices. Based on the computer algorithms the total of 58319 cases will be assigned for faceless assessment, till July 2020 since its launch on October 7, 2019. Till July Nearly around 8000 cases have been disposed of with the assessment orders provided without any further additions. While addition in 291 cases will be made forward to the risk management unit.
“in continuation of the push towards e-assessment, henceforth all assessments (barring a few cases) would be passed by the National e-Assessment Centre. Also, it has been clearly mentioned that an assessment which is not in conformity with this would be deemed to have never been passed”. For promoting the effective services the CBDT has reduced the percentage of Income Tax returns Easy guide to file income tax return for the FY (financial year) 2019-20. Also, we added the document checklist related to Personal, Income, tax, bank, real estate, investment selected for scrutiny.
Income tax returns look for scrutiny which is reduced to 0.25 percent of the total ITRs filed in the assessment year (AY) 2018-19, from 0.55 percent in AY 2017-18. The number was 0.71 percent in AY 2015-16 and 0.40 percent in AY 2016-17. The functioning of the income tax department includes the filing of the return, processing of returns, issuance of refunds, and assessment are to be performed in electronic mode. The CBDT will launch the faceless assessment process at the beginning of September 25.