2024-07-18 07:45:16
New DelhiTo make it easier for taxpayers, the central government is reviewing the ‘Faceless’ Income Tax Assessment Mechanism. The government has received many suggestions regarding this. According to sources, a hybrid formula is being considered. So that taxpayers can choose either a faceless scheme or an in-person solution.
A review is underway
According to the Economic Times report, an official said that it is being reviewed to assess its impact. He said that there is also a thought that it should be made optional for the taxpayer. Another official said that the aim is to resolve the challenges in its implementation to make it easier for taxpayers. A final decision will be taken soon.
What is this plan?
This scheme of faceless income tax assessment mechanism was launched on April 1, 2021. Its purpose is to reduce human contact in tax-related disputes and assessments. Under this, the Income Tax Department processes returns, issues refunds, conducts tax assessments, scrutiny and manages appeals. Cases are assigned randomly to the assessing officer without following geographical jurisdiction.
What is the demand?
Although the assessment system has been established through video conferencing, there is a growing demand from both personal and business taxpayers to allow some personal contact. The regional formations of the Income Tax Department are also insisting on more hybrid forms. Experts say that assessment is a complex process. Hybrid forms can make the communication between taxpayers and officers more effective.
What’s the problem?
Taxpayers have also complained of difficulties in explaining the working of a business to assessment officers over video conferencing. Sudhir Kapadia, partner, tax and regulatory services, EY, says that especially in large and complex cases that require detailed explanations and uploading of large files online, it has been observed that taxpayers are often not given enough time to prepare and upload their facts and arguments. This also includes not being given enough time to respond to notices.
What is faceless assessment
Faceless assessment means evaluating or assessing the returns of taxpayers in such a way where they do not have to go to the Income Tax Department. This means that taxpayers do not have to face any Income Tax Officer or Inspector directly. They do not have to come in face-to-face/direct contact with the people of the Income Tax Department. There has been an allegation that when taxpayers encounter the employees or officers of the Income Tax Department, unreasonable demands are made from them.