The Income Tax Department’s ‘e-Proceedings’ feature streamlines assessment processes by enabling electronic communication between taxpayers and authorities, eliminating the need for physical visits. Through the e-filing portal, taxpayers receive and respond to notices, questionnaires, and orders online. This digital approach contrasts with the traditional manual method, where interactions were in person. Faceless Assessments under Section 144B of the Income Tax Act further enhance this by sending all communications electronically and involving various specialized units like the National Faceless Assessment Centre. Taxpayers can view and respond to various notices, handle outstanding demands, and submit rectifications through the portal. The system supports file uploads, allows for one authorized representative, and offers multiple payment methods. Key features include no ability to edit responses once submitted and the necessity to log in to interact with the system.
Q1. What are the salient features of ‘E-Proceedings’ functionality on the ‘e-filing’ portal of the Income Tax department?
Ans: As a part of the e-governance initiative to facilitate the conduct of assessment proceedings electronically, the Income tax department has launched an ‘e-proceeding’ facility. It is a simple way of communication between the assessing authority and assessee, through electronic means, without the necessity to visit the Income-tax office to conduct the assessment proceedings.
In the e-proceedings initiatives, all the letters, income tax notices, questionnaires, intimations, orders and other communications are directly sent to the taxpayers’ registered account on the ‘e-filing’ portal of the Income-tax department. The taxpayers can submit the responses electronically by uploading the same along with attachments. The responses submitted by the assessee are viewed by the assessing authority electronically in Income-Tax Business Application (lTBA) module. Besides saving the precious time of the assessee, this initiative also provides a 24X7 anytime/ anywhere convenience to the taxpayers to submit the responses to departmental queries during assessment proceedings.
By completing the entire assessment proceedings online and electronically, the taxpayer has easy access to the ‘e-proceedings’ and all documents and information submitted in the process. This initiative is taxpayer-friendly and environment-friendly as assessment proceedings have become ‘faceless’, ‘paperless’, and ‘jurisdiction-less’.
Q2. How does the new ‘Faceless Assessments’ system under Section 144B of the Income Tax Act differ from the ‘Conventional Manual Mode of Assessments’?
Ans: Under the ‘conventional manual mode of assessments’, the jurisdictional assessing authority used to issue a scrutiny notice either under Section 143(2)/142(1) of the Income-tax Act and served such notice to the assessee at his registered address. The assessee (or his authorized representative) used to file the corresponding responses, explanations and supporting documents in physical form (hard copies) to the jurisdictional assessing authority by personally visiting the income tax offices. After a series of personal interactions and deliberations between the assessee/authorized representative and the assessing authority, the assessment was concluded.
As against this, under the new provisions of ‘Faceless Assessments’ under Section 144B, all the letters, income tax notices, questionnaires, assessments, orders and other communications from the assessing authorities are directly sent electronically to the taxpayers’ registered ‘e-filing account’. The taxpayer can submit the ‘e-responses’ electronically by uploading the same along with attachments on the ‘e-Filing’ portal. The ‘e-responses’ submitted by the assessee are viewed by the assessing authority electronically in Income-Tax Business Application (ITBA) module. The assessee is not required to have any personal interface or interaction with the assessing authority.
Thus, the elementary difference between conventional manual assessments and the ‘faceless assessments’ is the mode of the interface between the assessee and the assessing authority. In the conventional manual assessments, the mode of the interface was physical and personal, whereas in the ‘faceless assessments’, the mode is electronic.
Q3. Which are the different Income Tax Units under the new ecosystem of Faceless Assessments under Section 144B?
Ans: The different Income Tax Units under the new ecosystem of Faceless Assessments under Section 144B are:
a. National Faceless Assessment Centre;
b. Assessment Unit;
c. Technical Unit;
d. Verification Unit;
e. Review Unit
Q4. Which Income Tax Unit will do all the electronic communication/interface with the assessee under the New Scheme of Faceless Assessments under Section 144B?
Ans: The National Faceless Assessment Centre will do all the electronic communication/interface with the assessee under the New Scheme of Faceless Assessments under Section 144B.
Q5. Where can I see if any query has been raised against my response given against an adjustment made under Section 143(1)(a)?
Ans: You can view the queries raised by the Income Tax Department under e-Proceedings.
Q6. What notices/orders can I respond to under e-Proceedings?
Ans: All notices/intimations/letters issued by the Income Tax Department and CPC are available under e-Proceedings, which you can view and submit the response along with attachments by uploading the same on the e-filing portal. You can view and submit responses to the following notices through this service:
- Defective Notice under Section 139(9)
- Intimation under Section 245 – Adjustment against demand
- Prima Facie Adjustment under Section 143(1)(a)
- Suo-moto Rectification under Section 154
- Notices issued by Assessing Officer under Section 143(2)/142(1)/148
- Seek clarification communication under Section 133(6)
Q7. What is the permissible size of files that can be uploaded in the response window?
Ans: The maximum permitted size for a single attachment is 5 MB. In case you have more than 1 document to upload, you can put them together in a zipped folder and upload the folder. The maximum size of all attachments in a zipped folder should be 50 MB. If the size of the single document or the zipped folder exceeds the permitted limit, you can optimize the document/folder by reducing the file size.
Q8. Do I need to log in to the e-Filing portal to view and submit a response?
Ans: Yes, you will be required to log in to the e-Filing portal to view and submit a response using the e-Proceedings service.
Q9. Do I need to e-Verify the response/submission made using the e-Proceedings service?
Ans: Yes, you will be required to e-Verify the response submitted by you using the e-Proceedings service.
Q10. I have 4 days left before the proceeding limitation date. Why am I unable to submit my response?
Ans: If your proceeding status is open, the submit response option will be available only till 7 days prior to the proceeding limitation date till 6 PM. If there is no proceeding limitation date, the Income Tax Authority can close the e-submission option. However, at the option of the Income Tax Authority, the submission window can be re-enabled till the proceeding limitation date.
Q11. Can I view the response I have submitted to the notice issued to me?
Ans: Yes, you can view the response submitted by you or by your authorized representative.
Q12. Can I edit my response after responding to a notice on the e-Filing portal?
Ans: No, you cannot edit your response once submitted on the e-Filing portal.
Q13. Can I respond to a seek clarification notice without logging on to the e-Filing portal?
Ans: No, you will be required to log in to seek clarification communication. You will not be able to either view the notice or submit the response to the notice issued to you without log in.
Q14. Can somebody else on my behalf respond to the notices issued to me by the Income Tax Authority using the e-Proceedings service?
Ans: Yes, you can add an authorized representative to respond to a notice on your behalf using the e-Proceedings service, except in the case of Intimation under Section 245.
Q15. Can I remove an already added /existing Authorized Representative?
Ans: Yes, you can remove or withdraw the representative authorized by you.
Q16. Can I add two Authorized Representatives to respond to the notice issued to me?
Ans: No, you can only have one active authorized representative at a time for a proceeding.
Q17. How do I know if there is any outstanding demand pending against my PAN?
Ans: You can check if there is any outstanding demand through the e-Filing portal. Log in to the e-Filing portal and click Pending Actions > Response to Outstanding Demand. You will be redirected to the outstanding demand page. If there are demands outstanding against your PAN, the option against each of such outstanding demands will be Pending Payment/Response. You can click to Pay Now/Submit Response.
Q18. Why do I need to submit a response to an outstanding demand?
Ans: The Income Tax Department may find some Outstanding Tax demands against your PAN. In order to confirm if the stated demand is correct, an opportunity is given to you to respond. If you do not respond, the demand will be confirmed and will be adjusted against your refund (if any) or shown as a demand payable against your PAN (in case no refund is due).
Q19. What can I do if I disagree with the amount of outstanding demand?
Ans: You can choose ‘Disagree with Demand (Either in Full or Part)’. After you select the option, you need to select from the list of reasons due to which you disagree with the amount of demand. After selecting the relevant option from the list, you need to provide details for each reason before submitting the response. If you partially disagree with the demand, you should pay the undisputed portion of the demand (i.e. with which you agree).
Q20. What can I do if the reason for disagreement with the outstanding demand is not listed?
Ans: You can select ‘Others’ as a reason after you choose ‘Disagree with Demand (Either in Full or Part)’. After selection, you can enter the required details for the reasons.
Q21. Where can I view the past responses I have submitted?
Ans: After you log in to the e-Filing portal, click Pending Actions > Response to Outstanding Demand, and you will be redirected to the ‘response to outstanding demand’ page. Among the list of past and existing outstanding demands, click on ‘View against the particular demand’. You will only be able to see the view option for the demands for which you have already submitted at least one response.
Q22. While selecting reasons on the ‘Response to Outstanding Demand’ page, I get the message “No records found for revised/rectified return for the assessment year”. What can I do?
Ans: Please try again. If the problem persists, please validate the Acknowledgement no. received after the submission of your Rectification/Revised Return request.
Q23. How do I pay the outstanding tax demand?
Ans: You can make payment of your Income Tax Demand through the e-Filing portal in the following ways:
- Directly pay tax by clicking the ‘Pay Now’ option for the respective DRN (Demand Reference Number) on the ‘Response to Outstanding Demand’ page; or
Using the ‘Pay Now’ option while submitting the response to the outstanding demand (in case you agree or you partially agree with the outstanding demand).
Q24. What are the different ways in which I can make the payment?
Ans: You can make payment through the e-Filing portal. You can use the following online methods to make tax payments:
- Net-banking; or
- Debit Card; or
- Payment Gateway (using Credit Card/Debit Card of Non-Authorized Banks/Net Banking of Non-Authorized Bank/UPI)
You can use the following offline methods to make tax payments:
- NEFT / RTGS (the Mandate Form generated may be submitted to the bank or used for online transfer using Net-banking); or
- Pay over the Counter (through Cash / Cheque / Demand Draft).
Q25. What if I do not have the copy of the challan to be attached?
Ans: Where can I find it?You can reprint/regenerate your challan from your respective bank account using Net Banking or visit the bank branch.
Q26. When do I need to submit a rectification request?
Ans: A rectification request can be submitted on the e-Filing portal if there is any mistake apparent from the record in:
- An intimation issued under Section 143(1);
- Order under Section 154 by the CPC or by the Assessing Officer (where CPC transfers rectification rights).
A rectification request can be submitted only for returns that are already processed by CPC.
Q27. What kinds of errors can be corrected by submitting a rectification request?
Ans: You can submit a rectification request for errors in the processing of your income tax return by CPC. Only mistakes apparent from the record are considered for rectification, such as:
- Total Tax Liability. For example, tax payments not matched as per the CPC order, cancellation of adjustment of earlier demand, variance in interest/tax computation, amending assessment order or intimation.
- Gross Total Income. For example, income charged to tax under a wrong head considered, mismatch in salary income, brought-forward losses not allowed, incorrect set-off of current year losses, etc.
- Total Deductions. For example, details of deductions under Chapter VI-A wrongly considered, MAT/MATC or AMT/AMTC not allowed/partially allowed, amending assessment order to allow a deduction for late remittance of foreign exchange.
- Personal Information. For example, a request to correct the gender of the taxpayer, residential status, etc.
The above categories cover all types of taxpayers registered on the e-Filing portal. Do not use the rectification request for changing bank account or address details in your ITR or any other mistake on your part, which can be corrected with a revised return.
Q28. What are the different request types for income tax rectification?
Ans: The different request types for income tax rectification are as under:
- Reprocess the Return
- Tax Credit Mismatch Correction
- Additional Information for Section 234C Interest
- Status Correction (applicable to ITR-5 and ITR-7, applicable till AY 2018-19)
- Exemption Section Correction (applicable to ITR-7 only, applicable till AY 2018-19)
- Return Data Correction (Offline)
- Return Data Correction (Online)
