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What is Faceless Assessment Scheme?

Faceless Assessment Scheme

About Faceless Assessment Scheme

What is Faceless Assessment Scheme?

The Union Government introduced ‘Faceless Assessment Scheme’ for all taxpayers to usher in greater transparency, efficiency and accountability in income tax assessments. The scheme will eliminate human interface in assessments and is expected to reduce potential harassment of taxpayers. The National e-Assessment Center will be the sole governing authority for all communication with taxpayers under the scheme.

Under the scheme, the selection of a taxpayer is done through a system using analytics and artificial intelligence. A taxpayer may belong to one city, but it is possible that the income tax return may be assessed in some other city through random selection by computer. There will be a team based assessment and team based review for that to happen. The assessment would also be done without the taxpayer being aware of who the assessing officer is. There will be no need for the taxpayer to visit the income tax office or the officer. In the earlier system, the assessee had to visit the office of the I-T department if there was an error in the return and the same was the case if there is a dispute with a rule.

The scheme was launched on a pilot basis in October 2019, when around 58,000 cases and 25 Principal Commissioner-IT posts were notified under this scheme. Around 15-16 per cent cases have been completed without any hassles so far. While the Faceless Scheme is a step in the right direction towards transparency through digital means, it has experienced some teething troubles. The implementation would be key going forward to ensure all steps are taken to achieve the desired objective of reducing harassment.

Exceptions under the Faceless Assessment scheme

The exceptions to the Faceless Assessment include, serious frauds, major tax evasion, sensitive and search matters. The system also excludes international taxation and Black Money Act and Benami Property.

Latest Updates on Faceless Assessment Scheme

Faceless assessment: Fresh SOPs issued to address taxpayers' conflicts

3 min read Last Updated :Aug 05 2022 | 1:16 AM IST
Despite teething issues, e-filing process largely smooth: CBDT spokesperson

3 min read Last Updated :Jan 20 2022 | 2:32 AM IST
Faceless assessment: Rules for authentication of e-records submission eased

2 min read Last Updated :Sep 07 2021 | 11:27 PM IST
Top taxpayers may get flexibility to exit faceless assessment scheme

3 min read Last Updated :Aug 26 2021 | 6:04 AM IST