Faceless Income Tax Assessment

Faceless Income Tax Assessment

Faceless income tax assessment is a system of conducting income tax assessments in India in a fully automated and faceless manner. The faceless assessment system aims to eliminate the interface between the taxpayers and the tax officials, and to reduce the scope for discretion and subjectivity in the assessment process.


The system is started by the government as Prime Minister Modi had income tax filing said that  and disputes should not require physical contact with any official. So, this scheme was started on 7th October 2019. The department assigned a total of 58,319 cases online, which are not limited to a single jurisdiction. Out of these, 7,116 cases have been disposed off.

How Does the Faceless IT Assessment Work?

National e-Assessment Center, Delhi will be the only governing authority for the faceless IT assessment system. The regional centres of the authority will be in Mumbai, Kolkata, Hyderabad, Chennai, Pune, Ahmedabad and Bengaluru.

Process of the Faceless Tax Assessment:

  • National e-Assessment Center will issue the notice
  • Receiving assessee will reply within 15 days
  • The centre will assign an official for the case in Assessment Unit i. e. Regional Electronic Assessment Center REAC
  • NEAC will then communicate with assessee, verification unit and technical unit
  • They will send all unit information to NEAC
  • NEAC will collect all this information and send it to REAC
  • After examining all the information, REAC will prepare a draft assessment order
  • It will now be sent to NEAC
  • The assessee will be given a chance to defend his case and the fine will be charged

Benefits of Faceless Income Tax Assessment for Taxpayers:

Previously, the taxpayers had to visit the department’s office for scrutiny, which resulted in an increase in corruption cases, especially in higher number cases. The problem would not have arisen if the transaction could have been settled through a payment. This is where faceless assessment comes in.

  • It is an electric mode through which the assessee does not have to face any official and report his grievance. No need for the official or a tax professional for help, the system is here for you.
  • You can contact the department at your home anytime you want. The assessee will get the response for his query on his registered email id.
  • All the responses will be available online and the need to contact an official will be removed.
  • The government has employed state-of-the-art digital technology for a risk management system for the assessment. Automated Examination Tool, Artificial Intelligence, and Machine Learning will ensure that there is no human intervention or less interference from the Income Tax Department.
  • No boundaries, no limit use it anywhere, anytime. The faceless tax assessment will provide more transparency and efficiency to the system. Now that more than 99% of the ITRs are filed online, the system will help in assessing the scrutinized ITRs easily.

Advantages of Faceless Assessment Scheme:

The faceless assessment system aims to reduce the scope for corruption and improve the transparency of the income tax assessment process. It also aims to reduce the burden on taxpayers, who no longer need to spend time and money traveling to meet with income tax officers.

1. Improved Efficiency and Accuracy: Faceless tax assessments are faster and more accurate than traditional assessments, as data is collected and processed electronically. This eliminates the need for manual paperwork and the possibility of human error. Furthermore, the use of automated systems allows for improved accuracy in the assessment of taxes owed.

2. Reduced Costs: Faceless assessments are more cost-effective than traditional taxation as they reduce the need for physical infrastructure and personnel. This can be especially beneficial for small businesses and taxpayers with limited resources.

3. Improved Transparency: Faceless tax assessments can help to increase transparency between taxpayers and the government. This is achieved by allowing taxpayers to view their tax records online and providing them with the ability to challenge any discrepancies in their taxes. This can help to reduce corruption and ensure that the government is collecting the correct amount of taxes.

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