Bumpy ride ahead: Tax department in rush to fight faceless regime hurdles

The Income-tax Department is going through deliberations and testing for a smooth roll out of the faceless tax administration

The ambitious faceless tax administration project, set to start on October 8, will initially take up the limited scrutiny cases across the country. Within a year, the new tax regime is expected to cover the complete scrutiny cases as well.

However, the pilots have not shown encouraging results, indicating that the new system seeking to redefine the assessment process is not fully prepared for the shift. Sources in the tax department attributed this to lack of appropriate supporting infrastructure and ground-level teething problems. So, both tax authorities and taxpayers are likely to face hardship in the changeover phase.

Under limited