All You Need To Know About Faceless Tax Assessment And Appeal

Popular

RBI asks HDFC Bank to stop digital launches and credit card...

The Reserve Bank of India (RBI) has asked the country's largest private sector lender, HDFC bank to stop all launches of its digital business...

Assam’s Dibrugarh University Teacher Arrested For Sharing Porn Video: Police

During interrogation, the accused confessed to the crime. (Representational)Dibrugarh: An assistant professor in Assam's Dibrugarh University was arrested today for allegedly uploading pornographic content...

Process to avail full refund on Lockdown Air Tickets

The Supreme Court approved the Directorate General of Civil Aviation's (DGCA) proposal on air tickets refund and credit shell on flights booked prior and...

Why was CDS Gen. Bipin Rawat’s attending China-owned MG Motor event;...

US Ambassador Kenneth Juster greets CDS Gen Bipin Rawat with elbow bump | Watch ...

Explained: How new H-1B visa regime will impact Indians, Indian firms

In yet another policy stance change on H-1B visa within six months, the US administration on October 6 said it was announcing an “interim...

Prime Minister Narendra Modi today launched a new platform aimed at bringing more transparency and simplicity in the taxation process. “A faceless tax system will give the taxpayer confidence on fairness and fearlessness,” the PM said in a video address after rolling out the platform, called ”Transparent Taxation – Honoring the Honest”, in a big push for tax reforms. The main features of the initiative are: faceless assessment and appeal, and a taxpayers’ charter. 

Here’s what the government’s latest move means for you, the taxpayer: 

Faceless appeals and assessment

The move is part of the government’s efforts to bring more transparency in the tax assessment system. By making the tax process “faceless”, the government aims to minimise human interaction between the individual taxpayer and the tax officials.

Under the new system, appeals will be automatically allotted randomly to any tax officer in the country. The identity of the tax officer will remain unknown to the taxpayer, and vice versa. The scheme aims to eliminate the interface between the taxpayer and the income tax department.

Tax experts say this will bring more fairness and confidence in the country’s taxation system, as the taxpayer and the tax officer will not know each other’s identity.

“The faceless assessments and appeals is a reform in the right direction… The administration will need to ensure that the right of being heard (natural justice) is not denied to the taxpayer,” said Sandeep Bhalla, partner, Dhruva Advisors.

Also, there will be no intrusive and survey-related actions by field officers. Only the investigation and TDS (tax deducted at source) wings will be able to do so after prior approval by officers of the Chief Commissioner or higher ranks.

The initiative will deem any assessment outside the faceless framework as invalid, unless an exception has been made. 

The new platform will enable the taxman to take up cases based on data analytics and artificial intelligence, eliminating human interface and abolishing territorial jurisdiction, with the exception of serious frauds, major tax evasion, sensitive matters, international taxes and black money or benami property-related cases. 

The tax assessee will also not be required to visit an income tax office.

“The reform is particularly relevant in cases of large corporates which go through scrutiny assessments or appeals each year,” Mr Bhalla added.

Taxpayers’ Charter

The taxpayers’ charter is a set of rules giving more rights to the income tax assessee, aimed at both empowering and encouraging the taxpayer to file returns in a time-bound and responsible manner.

Simply put, this initiative by the taxman will enable assessees to have a bigger say in raising complaints in tax-related matters, such as a delay in an income tax refund. 

According to the taxpayers’ charter, the Income Tax Department is committed to treating every taxpayer as honest unless proven otherwise, and provide a fair, courteous and reasonable treatment. It lays emphasis on taxpayers’ privacy and authorities’ accountability, and provides mechanisms for appealing and reviewing an assessment, as well as raise complaints.

Financial experts say the initiative will lead to better protection of the rights of individual taxpayers. 

“The taxpayers’ charter will provide an enforceable right to the taxpayer if the action or decision in every income tax proceeding is not taken by the tax department within the time prescribed under the Act,” said Gopal Bohra, partner, NA Shah Associates.

“It will also provide a mechanism for lodging of complaints and prompt disposal of such complaint of the taxpayer.”

Source link

Latest News

Your Money: General insurers see premiums up 10% in Q3

Motor premiums increased 8% y-o-y in Q3FY21; up from trough levels of 13% y-o-y decline in H1FY21General insurers delivered 17% year-on-year (y-o-y) (ex crop)...

Cyber risks: Need to popularise cyber insurance

The panel says that there are certain aspects of cyber insurance that require a consensus and Common Reference Framework to bring about clarity in...

Government Must Reduce Import Duty, GST On Gold To 7%, Say Experts

<!-- -->Ahammed MP. Chairman, Malabar Gold & Diamonds:As a part of the Union Budget 2021-22 expectations,  the government must reduce import duty on gold and GST...

Here’s How To Activate Universal Account Number On EPFO Portal

<!-- -->Universal Account Number (UAN) is the account where employees' provident fund (EPF) deposits are made. In many companies, salaried employees are given EPF...

Here’s How To Change Registered Mobile Number In EPF Account

<!-- -->The UAN helps to bring together all the employee data in one place.The Employee Provident Fund Organisation (EPFO) has introduced various services for...