The faceless assessment scheme was introduced in India on 13th August 2020. It is a part of the Government of India’s initiative to reduce the interface between taxpayers and tax officials. The scheme is aimed at reducing the compliance burden of taxpayers and making the tax system more efficient and transparent.
2. The faceless assessment scheme was introduced in India on 13th August 2020. It is a part of the Government of
India’s initiative to reduce the interface between taxpayers and tax officials. The scheme is aimed at
reducing the compliance burden of taxpayers and making the tax system more efficient and transparent.
Under the scheme, all assessment proceedings are conducted electronically without any physical interface
between the taxpayer and the tax official. The taxpayer is required to submit the required documents and
information online. The tax official then reviews the documents and information and passes the
assessment order electronically. India has been at the forefront of several initiatives in e-governance, and
one of its most popular initiatives is Faceless Assessment. This revolutionary concept is based on the
ideology of ‘seamless assessment’ for taxpayers—it helps reduce transaction costs, eliminates
unnecessary human intervention and significantly increases efficiency in tax filing. But what does this
really mean for India? In this blog post, we will explore the implications of Faceless Assessment and its
impact on the Indian economy. We’ll also look at some advantages and disadvantages of embracing this
new system and how it could reshape India’s taxation landscape for years to come.
3. FACELESS ASSESSMENT ADVANTAGE Faceless assessment is the latest method of
conducting tax audits in India. This system was introduced by the Central Board of
Direct Taxes (CBDT) in October 2019 with an aim to reduce the interface between
taxpayers and tax officials, and to make the assessment process more efficient and
effective. Under this system, all communications between the taxpayer and the tax
department will be conducted electronically, without any face-to-face interaction.
Taxpayers will be able to submit their responses to queries raised by the tax
department through a dedicated portal. The faceless assessment system is
expected to bring several benefits for taxpayers. First, it will help reduce human
contact and hence the chances of corruption. Second, it will lead to faster disposal
of cases as there will be no need for physical hearings. Third, it will make the
assessment process more efficient as all cases will be allocated randomly to
officers across the country, irrespective of their geographical location. The faceless
assessment system is a welcome step by the CBDT and is expected to bring
transparency and efficiency in the tax assessment process in India.
4. The advantages of faceless assessment in India can be categorized below: a) Advantages of
Faceless Tax Assessment for Taxpayers: 1. Taxpayers can gain access to faster and more
efficient tax assessments. 2. Faceless tax assessment helps to ensure better tax compliance
and reduce evasion. 3. It ensures that taxpayers get rid of the hassles of interacting with the
tax officials. 4. It provides taxpayers with transparency and certainty in the tax assessment
process. 5. There is no interference of tax officials or third party in the tax assessment
process and helps to reduce discretion. b) Advantages of Faceless Tax Assessment for Tax
Agencies: 1. It helps in reducing the time taken for processing tax assessments and also
reduces the paperwork involved.
5. 2. It allows tax authorities to monitor tax filings in a more efficient manner and helps to identify potential tax evaders quickly.
3. It enables tax authorities to reduce the chances of human errors and fraud.
4. It increases the accuracy of assessments and creates consistency in the assessment process.
5. It helps tax authorities to reduce costs and improve service delivery standards. FACELESS ASSESSMENT DISADVANTAGE
Although online assessment has a lot of advantages, there are certain disadvantages associated with it as well. One such
disadvantage is the lack of human interaction. In a traditional classroom setting, students are able to interact with their
teachers and get immediate feedback. However, in an online setting, students are not able to benefit from this human
interaction. This can be a disadvantage because it can lead to misunderstandings and confusion about the material being
studied. Additionally, online assessments can be impersonal and daunting for some students. This can create anxiety and
stress, which can impact performance on the assessment. Faceless assessment has both advantages and disadvantages. It
can be a useful tool for assessing cases. It is important to ensure that the assessment is conducted in a secure and reliable
manner.
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