CBDT undergoing significant restructuring for faceless assessment

4,224 officers have been diverted to the faceless assessment unit, leaving 2,000 in the residual jurisdiction, which will no longer carry out assessments

The income tax department is undergoing a complete restructuring exercise with regional e-assessment centres (ReAC) set up across 20 cities, apart from the national centre in Delhi. Some 4,224 officers have been diverted to the faceless assessment unit, leaving about 2,000 officers in the residual jurisdiction, which will no longer carry out any assessment exercise.

Detailed guidelines have been issued on reallocation of roles and functions to do away with physical interface between the taxpayer and the tax authorities.

Prime Minister Narendra Modi on Thursday launched the faceless assessment scheme, which eliminates territorial jurisdiction and substitutes individual discretion with team-based assessment, with the aim of bringing in transparency and objectivity to the process.

“All these (faceless assessment) functions will be through electronic means, for which the national e-assessment centre (NeAC) will be the getaway… for all the flow of information. The officers and staff in the ReACs will perform the functions relating to the assessment and verification function under the income tax act…but all communications from the department to the taxpayer…will be in the name of the NeAC,” the note said.

Officers in the faceless assessment units will carry out assessments and verification related to assessments. They will also carry out review of draft orders, apart from providing technical support. The final orders, however, will be passed and dispatched by the NeAC only.

The remaining 2,000 officers outside the NeAC and ReAC hierarchy will perform functions other than assessment, such as taxpayer outreach and taxpayer education, taxpayer facilitation, grievance handling, collection and recovery of taxes and audit functions. They will also be responsible for judicial functions like giving effect to appellate orders of commissioner appeals, ITAT, High Court Supreme Court, Settlement Commission, etc.

The Central charges, international tax, transfer pricing charges and investigation charges have not been diverted and will continue in the same role.

The power of conducting surveys will be exercised only by the investigation directorates and TDS charges only.

The faceless scheme will be led by 30 chief commissioners of income tax and 154 principal commissioners of income tax. About 32 chief commissioners of income tax and 96 principal commissioners of income tax will be in charge of the residual jurisdiction.

Finance Minister Nirmala Sitharaman had said that the platform brings in a transparent, efficient and accountable tax administration using technology, data Analytics and artificial intelligence.