Not taken into confidence for faceless assessment scheme: Tax officers

In a letter to the CBDT Chairman P C Mody, the association has highlighted the unease among 97 per cent of the I-T department workforce with respect to the implementation of the scheme

Days after Prime Minister Narendra Modi announced the faceless assessment scheme as part of the measures to promote transparency in taxation, the association representing income-tax (I-T) officers and employees has expressed distress over not being “taken into confidence” to carry out a reform requiring complete overhaul of the department. 

In a letter to the Central Board of Direct Taxes (CBDT) Chairman P C Mody, the association has highlighted the unease among 97 per cent of the I-T department workforce with respect to the implementation of the scheme.

While it supported the vision of bringing in greater transparency and better taxpayer services, it said, “…had the department taken us into confidence before bringing the said announcements, the feeling of being left out would not have been there among 97 per cent of the workforce of the department, whom we represent,” the letter by Joint Council of Action (JCA) said. The JCA represents both the I-T Employees Federation and the I-T Gazetted Officers Association.

It is the first official reaction from I-T officers on the big announcement requiring complete overhaul.

Under the restructuring, regional e-assessment centres (ReACs) will be set up across 20 cities, besides the national e-assessment centre (NeAC) in Delhi. Around 4,224 officers have been diverted to the faceless assessment unit, leaving 2,000 officers in the residual jurisdiction, which will no longer carry out any assessment exercise, but taxpayers’ services.

The association raised that no employee should be made redundant due to the restructuring exercise. “Our concern has always been to protect the career progression and working conditions of our members. We are also certain that the CBDT, as has been the case in the past, would ensure no employee is made redundant in the process, and existing vacancies would be filled up with due promotions and recruitment,” it said.

 

 

A senior I-T officer told Business Standard that there were no deliberations or discussions that had taken place before for a reform of this scale. “The scheme has been formulated by a handful without taking any feedback. There is a lot of confusion and unease as they have changed roles and functions overnight without taking officers into confidence. There should have been a countrywide pilot on this and overview of the likely restructuring should have been shared with the officers,” he added.

The CBDT issued detailed guidelines on the reallocation of roles and functions to do away with physical interface between the taxpayer and the tax authorities on Friday.

The JCA complained about the short deadline being given for suggestions on diversions of posts to the newly created NeAC and ReAC. It also raised that the principal chief commissioners of I-T have so far not discussed any suggestions with either the local or central JCA, who are the majority stakeholders. 

“It is pertinent to note that the… letter (diversion) was received on August 14 evening and the suggestions have been asked by 12 noon on August 17, despite there being a national holiday and Sunday in between,” it added.

It urged the chairman to convene an urgent meeting with the central JCA either in New

Delhi through videoconferencing to discuss the road ahead “in the light of these revolutionary changes along with our long-pending demands”.

The assessment exercise will now be solely carried out by officers in the faceless assessment units. They will also do verification related to assessments, besides review of draft orders and 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, in the residual jurisdiction, will perform functions other than assessment, like the taxpayer outreach and taxpayer education, taxpayer facilitation, grievance handling, collection and recovery of taxes and audit functions, among others. They will also be responsible for judicial functions like giving effect to appellate orders of commissioner appeals, I-T Appellate Tribunal, 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.

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