India is leading by example with its faceless E-assessment system for income tax
- Posted By
10th May, 2021
India is one of the few countries in the world to adopt the E-assessment and is now leading the world through the reforms in the indirect taxes.
About the faceless E-assessment system
- Faceless Assessment is being initiated to remove the human interface between the taxpayer and the Income Tax (I-T) Department.
- Features of the system
- Selection of a tax payer only through system using data analytics and AI
- Abolition of territorial jurisdiction
- Automated random allocation of cases
- Central issuance of notices with Document Identification No. (DIN)
- No physical interface, no need to visit the income tax office
- Team-based assessments and team-based review
- Draft assessment order in one city, review in another city and finalisation in third city.
Exceptions: Cases relating to:
- Serious frauds, major tax evasion, sensitive & search matters
- International tax
- Black Money Act and Benami Property
Significance of the scheme
- The system comes at a very apt time, wherein the digital nature of the process ensures continuity in period of the Covid-19 pandemic.
- India will be one of the few countries to have faceless assessment
- If it gets implemented successfully, India can be an example for the rest of the world in leveraging technology for curbing undesirable practices and offering better services to its tax-paying citizens.
- The scheme is expected to result in better quality of assessment orders while reducing potential harassment to taxpayers.
National e- Assessment Centre
- The NeAC will be based in Delhi,
- It will look after the functioning of the e-Assessment scheme.
- The body would be headed by Principal Chief Commissioner of Income Tax.
- Apart from assessment units, these centres would also be home to review, technical and verification units.
- Additionally, there would be eight Regional e-Assessment Centres (ReAC) in Delhi, Mumbai, Chennai, Kolkata Ahmedabad, Pune, Bengaluru and Hyderabad.