Income Tax Return ALERT for taxpayers! Faceless Assessment Scheme - What it is? How it works? Key features? All details here

The Income Tax Department (ITD) introduced the Faceless Assessment Scheme, a team-based assessment with dynamic jurisdiction, to ease compliance for taxpayers. Notices can be responded to digitally, from anywhere, anytime. 

The Faceless Assessment Scheme was introduced to provide transparency, efficiency, and accountability in Income Tax assessments in the 2019 Union Budget.

See Zee Business Live TV Streaming Below:

The scheme seeks to eliminate the human interface between the taxpayer and the income tax department. The scheme lays down the procedure to carry out a faceless assessment through electronic mode. From 13 August 2020, the e-assessment scheme of 2019 stands amended and hence known as the Faceless Assessment scheme.

Building the future with technology!
Income Tax Department introduced the #FacelessAssessment Scheme, a team based assessment with dynamic jurisdiction to ease compliance for taxpayers. Notices can be responded to digitally, from anywhere, anytime.#DigitalIndia pic.twitter.com/tebvDW1OTX

— Income Tax India (@IncomeTaxIndia) July 1, 2021

The faceless assessment scheme applied only to the scrutiny assessment and best judgment assessment. However, as per the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Bill, 2020, Faceless Assessment will now bring other provisions of the Income Tax Act, 1961 under its purview. 

Ease of Tax Compliance 

Making Income-Tax Assessment smoother, faster and hassle-free.  

Anyone whose case is selected for scrutiny will be able to file all the documents online.  

Allocation of the case to be done by the National Faceless Assessment Centre (NaFAC) to the Regional Faceless Assessment Centres (ReFAC) through an automated allocated system.  

Key Features 

The key features of the Faceless Assessment Scheme for Transparent Taxation are: 

* Taxpayers' Charter giving legal basis to taxpayer’s rights and duties 

* E-Communication of information with the department 

* E-Confirmation by Taxpayer 

* E-verification 

* E-Response and Faceless Assessment are the main pillars of the platform for transparent taxation and focus of the ITD in the future. All Cases other than those assigned to Central and International Taxes are to be done through Faceless e-Assessment.