Many questions have been raised on human intervention in assessment in Income Tax. In view of this, the government has started the mechanism of faceless income tax assessment from April 1, 2021. News has come that the government is reviewing this mechanism. So that it can be made easier.
To make it easier for taxpayers, the Central Government is reviewing the 'Faceless' Income Tax Assessment Mechanism. The government has received many suggestions regarding this. According to sources, a hybrid formula is being considered. So that taxpayers can choose between faceless scheme or in-person solution.
Review is underway
According to the Economic Times report, an official said that it is being reviewed to assess its impact. He said that there is also an idea that it should be made optional for the taxpayer. Another official said the aim is to address challenges in its implementation to make it easier for taxpayers. A final decision on this will be taken soon.
What is this scheme?
This scheme of faceless income tax assessment mechanism was launched on April 1, 2021. Its objective is to reduce human contact in tax related disputes and assessments. Under this, the Income Tax Department processes returns, issues refunds, conducts tax assessment, scrutiny and manages appeals. Cases are assigned randomly to the Assessing Officer without following geographical jurisdiction.
What is the demand?
However, the assessment system has been established through video conferencing. But there is a growing demand from both personal and business taxpayers to allow some personal contact. Regional formations of the Income Tax Department are also pushing for a more hybrid form. Experts say that assessment is a complex process. The hybrid form can make communication between taxpayers and the officer more effective.
What is the problem?
Taxpayers have also complained of difficulties in explaining the functioning of a business to assessment officers over video conferencing. Sudhir Kapadia, partner, tax and regulatory services at EY, says that especially in large and complex cases that require detailed explanations and uploading of large files online,It has been observed that many times taxpayers are not given sufficient time to prepare and upload their facts and arguments. Apart from this, not giving enough time to respond to the notice is also included.