E-Assessment Scheme 2019

Finance Minister’s Budget Speech 2019

The Hon’ble FM, in her Budget Speech on 5th July 2019 announced:

√ Faceless assessment in electronic mode

√ With no human interface

√ To be launched in 2019 in a phased manner

√ Notices to be issued electronically by a Central cell

√ Cases to be allocated to assessment units in a random manner

√ Central Cell to be the single point of contact between taxpayer and the Department

Legal Framework

  • Section 143(3A) & (3B) of the IT Act empowered notification of E-assessment scheme to impart greater efficiency, transparency and accountability by:

– Eliminating interface between Assessing Officer and Assessee to the extent technologically feasible

– Optimising the utilisation of resources through economies of scale and functional specialisation

– Introducing team based assessment with dynamic jurisdiction

– E-assessment Scheme 2019 notified on 12.09.2019

Organisation Structure

  • National e-Assessment Center (NeAC)

– Headed by Pr. CCIT

– Located at Delhi

  • 8 Regional e-Assessment Centers (ReAC)

– Headed byCCIT

– Located at Delhi, Mumbai, Chennai, Kolkata, Ahmedabad, Pune, Bangalore and Hyderabad

National e-Assessment

NeAC/ReAC Manpower

Post Number
Pr. Chief Commissioner of Income Tax 1
Chief Commissioner of Income Tax 4
Pr. Commissioner of Income Tax 25
Commissioner of Income Tax 1
Additional/Joint Commissioner of Income Tax 144
Deputy/Assistant Commissioner of Income Tax 163
Income Tax Officer 281
Inspector 635
Executive Assistant 400
Multi-Tasking Staff 558
Stenographer 474
Total 2686

E-Assessment 2019 Ecosystem

E-Assessment 2019 Ecosystem

National e-Assessment Center (NeAC) Delhi

Pr. CCIT

Functions of NeAC

  • Specify format, mode, procedure and processes
  • Send all notices/communication electronically
  • Assign cases to assessment unit (ReAC) through automated allocation system
  • Allocate cases to verification unit, technical unit through automated allocation system
  • Select draft assessment orders for review and allocate to review unit through automated allocation system
  • Providing opportunity to taxpayer before finalising assessment order
  • Finalize assessment orders
  • Transfer all electronic records to jurisdictional AO for post assessment work

Regional e-Assessment Centers (ReAC)

CCIT

Functions of ReACs

  • Assessment Unit Identify issues, seek information and analyse material to frame draft assessment orders
  • Verification Unit – Conduct enquiry, examination of books of account, examination of witnesses and recording of statement (through VC)
  • Technical Unit Provide advice on legal, accounting, forensic, Information Technology, Valuation, Transfer Pricing, Data Analytics etc.
  • Review Unit Review of Draft Assessment Order – Whether material evidence brought on record, points of facts and law incorporated, application judicial decisions considered, arithmetic correctness etc.

Progress So Far͙………

05.07.2019 Announcement in Budget
12.09.2019 Notification of E-Assessment Scheme 2019
17.09.2019 Diversion of Posts from CIT and above
17.09.2019 Posting of officers in NeAC
23.09.2019 Notification for All India Jurisdiction (concurrent) to NeAC
24.09.2019 Selection of cases for E-Assessment scheme 2019
26.09.2019 Notification of designated portal for E-Assessment
27.09.2019 Issue of digitally signed notices in 58,322 cases
30.09.2019 Allocation of office space for NeAC
01.10.2019 Diversion of posts for ReACs from Add. CIT and below
03.10.2019 Setting up and All India Jurisdiction (concurrent) to ReACs
07.10.2019 Inauguration of NeAC and ReACs by Hon’ble FM

Expected Benefits

  • Ease of compliance for taxpayers
  • No human interface
  • Transparency and efficiency
  • Functional Specialisation
  • Improvement in Quality of Assessment
  • Risk based and focussed approach
  • Systematic and specific verification
  • Standardisation and quality management
  • Better monitoring
  • Expeditious Disposal of Cases

Source- PDF on E-Assessment Scheme 2019

More Under Income Tax

Leave a Comment

Your email address will not be published. Required fields are marked *