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Latest Update in Faceless assessment
👉 “Save draft option is now available in Form 35 in accordance with faceless scheme”
👉 “Form 35 is re-enabled to file an appeal in accordance with the Faceless Appeal Scheme,’ Save draft’ are going to be enabled shortly”.
👉 The tax department has now launched the Faceless facility for tax appeals. Under the power , all the cases are going to be completed during a faceless way during a faceless environment apart from appeals that are associated with evasion of tax, serious frauds, black money, international tax, and special research. a compulsory Gazette notification is additionally given today.
👉 On 13th August 2020 the Hon’ble Prime Minister during the initiation of the Faceless Assessment and Taxpayers’ Charter as some of “Transparent Taxation – Honoring the Honest” stage had declared "the launch of Faceless appeals on 25th September 2020 on the occasion of the Birth Anniversary of Pt. Deen Dayal Upadhayay. Moreover, in some previous years, the tax Department has taken out various reforms in tax to urge easier tax processes and for simplicity of acceptance concerning for the assessee".
👉 The Lok Sabha declares the taxation bill for the faceless assessment scheme and to offer relief within the context of compliance to the assessee. The law conserves the elongation of the time limit for filing the return and linking of the PAN and Aadhar. The Bill skilled the voice vote post stiff opposition on problems concerning tax operation and clear the PM Cares Fund and therefore the GST compensation problems.
👉 "The administration provides the tax consideration for those that have contributed to the PM cares fund found out in March. Under the faceless assessment, this might be applied to processes like collection & recovery of the tax, transfer pricing assessments, IT acts, appeals, revisions, including assessment and conflict analysis panel, which has been produced".The minister of finance Nirmala Sitaraman speaks that using the faceless assessment will cause reducing evasion , “We’re bringing in tax transparency through law because it's extremely important for the country,”. This also made relaxation to the NRI investors as additional charge being applied on the dividend income for foreign portfolio investors (FPI) which utilizes the structure which stands at 15%.
👉 Recently the CBDT department has announced around 30 evaluation centres for the newly launched faceless assessment scheme notified by the govt . There are 20 cities that are selected for the establishment of those 30 evaluation centres
👉 Prime Minister Narendra Modi on Thursday, August 13, 2020, unveiled ‘Transparant Taxation-Honoring the Honest’ Platform aimed to reform and simplify the present taxation system. During the launch video conference, he stated that the platform has major reforms like faceless assessment, faceless appeal, and taxpayers charter. Faceless appeal service will inherit action from September 25, whereas the other two will inherit play from today. it's expected that the Faceless Assessment Scheme will eliminate the necessity for the human interface between the taxpayer and therefore the tax department.
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What is Faceless tax Assessment?
The system is started by the govt as Prime Minister Modi had said that tax filing and disputes shouldn't require physical contact with any official. So, this scheme was started on 7th October 2019. The department assigned a complete of 58,319 cases online, which aren't limited to one jurisdiction. Out of those , 7,116 cases are disposed off.
How Does the Faceless IT Assessment Work?
National e-Assessment Center, Delhi are going to be the sole governing authority for the faceless IT assessment system. The regional centres of the authority are going to be in Mumbai, Kolkata, Hyderabad, Chennai, Pune, Ahmedabad and Bengaluru.
Some Advantages of Faceless Assessment Scheme
The faceless assessment has another benefits on its list. As per the govt officials who have researched on the faceless assessment, said that the new assessment scheme will bring relief for the honest taxpayers. within the current assessment scheme, the tax department and officials may take bribery but within the faceless assessment, it might be easier for the honest taxpayers to directly submit their tax returns without even known to whom they're submitting, thus eradicating the probabilities of bribery.
Along with such advantages, multiple people take government machinery as a tool to harass innocent people and by this faceless mechanism, this issue also will be covered.
Process of the Faceless Tax Assessment:
- National e-Assessment Center will issue the notice
- Receiving assessee will reply within 15 days
- The centre will assign a politician for the case in Assessment Unit i. e. Regional Electronic Assessment Center REAC
- NEAC will then communicate with assessee, verification unit and technical unit
- They will send all unit information to NEAC
- NEAC will collect all this information and send it to REAC
- After examining all the knowledge , REAC will prepare a draft assessment order
- It will now be sent to NEAC
- The assessee are going to be given an opportunity to defend his case and therefore the fine are going to be charged
Benefits of Faceless tax Assessment for Taxpayers
👉 Previously, the taxpayers had to go to the department’s office for scrutiny, which resulted in a rise in corruption cases, especially in higher number cases. the matter wouldn't have arisen if the transaction could are settled through a payment. this is often where faceless assessment comes in. it's an electrical mode through which the assessee doesn't need to face any official and report his grievance. No need for th👉e official or a tax professional for help, the system is here for you. you'll contact the department at your home anytime you would like . The assessee will get the response for his query on his registered email id. All the responses are going to be available online and therefore the got to contact a politician are going to be removed.
👉 The government has employed state-of-the-art digital technology for a risk management system for the assessment. Automated Examination Tool, AI , and Machine Learning will ensure that there's no human intervention or less interference from the tax Department. No boundaries, no limit use it anywhere, anytime. The faceless assessment will provide more transparency and efficiency to the system. Now that quite 99% of the ITRs are filed online, the system will help in assessing the scrutinized ITRs easily. (Source)
