The faceless income tax assessment system works by automating the selection process for scrutiny of tax returns, and by conducting the assessment process through a centralized system. The system uses an algorithm to select returns for scrutiny, rather than manual selection by a tax officer.
The process is initiated when a taxpayer files their income tax return on the e-filing portal. The return is then processed by a centralized system, which uses an algorithm to select returns for scrutiny. If a return is selected for scrutiny, the taxpayer will receive an electronic notice with a list of queries and documents that need to be submitted for the assessment process.
Once the taxpayer submits the required documents and answers the queries, the assessment process is carried out by a team of tax officials located in different parts of the country. The team will conduct the assessment and pass an assessment order without any personal interaction with the taxpayer.
The taxpayer can access the status of their assessment and communicate with the assessing officer through the e-filing portal. The taxpayer can also file an appeal through the e-filing portal, which will be heard by a team of appellate officers located in different parts of the country.
It’s worth noting that the faceless assessment system is not applicable to all types of assessments. It is currently only applicable to a certain category of cases, and the government may expand the scope of faceless assessment in the future. It is always advisable to consult with a tax professional or check with local tax authorities