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Faceless Interface 2020
‘The Faceless Assessment Scheme 2020' is a landmark reform in the history of tax administration in India. It aims to eliminate the human interface between the taxpayer and the Income-tax department and sets out the mechanism for carrying out a faceless assessment by electronic means. The Tax office is evolving, keeping technology at its core.
We are pleased to present our publication, ‘Faceless interface: A paradigm shift in administration of Income-tax Law’, which captures the various facets of the faceless regime and its impact, key legislative and procedural aspects and takeaways, and how taxpayers can gear themselves to comply with the requirements.
Faceless assessment benefits
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Introduce and encourage policy-driven governance
Reduce the physical interface between the Income-tax Department and taxpayers
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Optimal utilisation of resources and elimination of the discretion of tax officers
Impart greater transparency, efficiency and accountability in the tax administration systems
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Use of technology tools, such as Artificial Intelligence (AI) and machine learning, for selection of cases till completion of assessments
Harness the power of data through collation of information from various sources, in sync with the use of various data analytics techniques
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Reduce tax litigation at various levels
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How the scheme works
Using state-of-the-art digital technology, the central system picks tax returns for assessment on the basis of predetermined risk parameters.
It is randomly assigned to different assessment units in any part of the Country, completing the assessment without any physical contact (unless limited video conferencing availed).
With a few modifications, faceless appeals work in a similar way.
The way forward
This paradigm shift requires significant adjustments from taxpayers and the Income-tax Department. The taxpayers need to re-examine their policies and practices in relation to the tax function and adopt technology to maintain, reconcile and present data. Our report is a guide to help taxpayers in their journey through the faceless regime and help them to gear themselves to comply with its requirements. The publication also offers insightful nuances and suggestions which the Government should consider to enhance the system and the adjustments need to be made by the taxpayer to navigate the new system.
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