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  • Faceless Assessment system of IT Dept a game changer

    Published on July 19, 2020

    The Faceless Assessment system of the Income Tax Department has been a game changer in the arena of direct taxation. It has empowered the taxpayers and has, as a foremost mechanism, altered the facets and perception of overall tax administration in the country.

    Since its launch on 7th October last year and implementation of the first phase, Faceless Assessment has provided for assessment of income-tax in electronic mode.

    Now taxpayers need not see face-to-face any tax officer or visit an I-T office and need not run pillar-to-post on receiving income tax scrutiny assessment notice or rush to a tax professional or accountant.

    Now, all the communications with taxpayers is made electronically by a central cell in Delhi and the identity of all the Assessing Officers remains unknown.

    The Faceless Assessment was put to work under National Assessment Center (NeAC), with headquarters at Delhi and eight Regional Assessment Centers (ReAC) at Delhi, Mumbai, Chennai, Kolkata, Ahmedabad, Pune, Bengaluru and Hyderabad which comprise Assessment units, Review units, Technical units and Verification units.

    Explaining this major reform in the income tax processes, Fin Min Sources said that now almost 99 per cent returns are e-filed. Out of more than 6 crore returns filed annually, only about 3 lakh returns come under scrutiny on the basis of select risk parameters.

    Prime Minister Narendra Modi in 2017 had desired that tax assessments should be anonymous, thereby eliminating discretion and physical interface.