FACELESS
ASSESSMENT AND APPEAL
OBJECTIVES
Imparting greater efficiency, transparency and accountability Eliminating physical interface between the taxpayer and tax officers
FEATURES
- Selection only through system using data analytics and AI
- Dynamic Jurisdiction — abolition of territorial jurisdiction
- Automated random allocation of cases.
- Central issuance of notices with Document Identification No. (DIN)
- No physical interface, No need to visit income tax office
- Team-based assessments and Tearm.based review
- Draft assessment order in one city, review in another city and finalisation in third city
- Objective fair and just order
- 2/3rd of the manpower is utilised for faceless and balance for other functions
Direct Tax Reform
EASE OF COMPLIANCE FOR TAXPAYERS
TAXES WERE NEVER SO EASY
Faceless E-assessment Scheme
The E-assessment Scheme, 2019 eliminates
- Interface between the Assessing Officer and the assessee
- Optimising use of resources through functional specialisation
- Introducing the team-based assessment
Document Identification Number (DIN)
- Every communication of the department issued from 1st Oct, 2019 mandatory to have computer-generated unique DIN
Pre-Filing of Income-Tax Returns
- ITR form now contains pre-filled details of certain incomes
Simplification of compliance norms for Start-ups
- Hassle-free assessment procedure, exemptions from Angel-tax, constitution of dedicated start-up cell
Simplification of compliance
- Threshold for launching prosecution increased
- System of collegium of senior officers for sanction of prosecution introduced
- Norm for compounding relaxed
REDUCTION IN TAX RATES & SIMPLIFICATION OF DIRECT TAX
Corporate Tax: Taxation Laws (Amendment) Act, 2019
- Corporates to pay tax at concessional rate of 22%
- Corporate tax for new manufacturing companies (set up after Oct. 2019) reduced to 15%
- No MAT applicable to such companies
Personal Income Tax: Finance Act, 2020
- Individual taxpayers to pay income-tax at lower slab rates if they do not avail specified exemption & incentive
- Co-operatives to pay taxes at concessional rates without claiming any specified deduction or incentive
Abolition of Dividend Distribution Tax (DDT)
- Finance Act, 2020 removed DDT with effect from 01.04.2020. Dividend income to be taxed only in the hands of the recipients
Proposed Measures for Widening of Tax Base
ENSURING BETTER COMPLIANCE & TRANSPARENCY
NO TAXPAYER LEFT BEHIND
Expansion of scope of Reporting of Transactions (SFT):
♦ Payment of educational fee /donations above Rs. 1. lakh p.a
♦ Electricity consumption above lakh Rs. 1. lakh p.a
♦ Domestic business class air travel/foreign travel
♦ Payment to hotels above Rs. 20,000
♦ Purchase of jewellery, white goods, painting, marble, etc. above Rs. 1 lakh
♦ Deposit/Credits in current account above Rs. 50 lakh
♦ Deposit/credits in non-current account above Rs. 25 lakh
♦ Payment of property tax above Rs. 20,000 p.a.
♦ Life Insurance premium above Rs. 50,000
♦ Health insurance premium above Rs. 20,000
♦ Share transactions / D-MAT accounts/Bank lockers
- Deduction/collection of tax at higher rates for non-filers of return
- Compulsory riling of return by the person having bank transactions above Rs. 30 lakh, all professionals, businesses having turnover above Rs. 50 lakh, payment of rent above Rs. 40,000
Widening the Tax Base
ENSURING BETTER COMPLIANCE & TRANSPARENCY
MORE TAX COMPLIANCE, MORE PROGRESS
Deduction/collection of tax (TDS/TCS) on new transactions:
- TDS on Cash withdrawal above Rs. 1 crore (20 lakh for Non-filers)
– TCS on motor vehicle above Rs. 10 Lakh
- TCS on Foreign remittance under LRS above Rs. 7.5 lakh/ overseas tour packages
- TDS on e-commerce suppliers & TCS on purchase of goods above Rs.50 Lakh
Expansion of scope of Reporting of transactions (SFT):
- Cash deposit/withdrawal of Rs. 50 lakh or more in current account
- Cash Deposit of 10 lakh or more in non-current account
- Sale of foreign exchange above Rs. 10 lakh
- The reporting of transactions of mutual funds, credit card transactions, immovable property, etc. rationalised
Compulsory Filing of return:
- Deposit above Rs.1 crore in current account, Expenditure of Rs. 2 lakh on foreign travel & electricity consumption above Rs. 1 lakh
Faceless Appeals
TRUST, TRANSPARENCY & TAX
Faceless Appeal Scheme will be implemented from 25th September
TOTAL TRANSPARENCY
FEATURES
- Appeals to be randomly allotted to any officer in the country
- The identity of officers deciding appeal will remain unknown
- No need to visit the officer/office
- The appellate decision will be Team‑ Based & reviewed
EXCEPTIONS
CASES RELATING TO:
- Serious frauds, Major Tax Evasion, Sensitive & Search matters
- International tax
- Black Money Act & Benami Property
Faceless Assessment
A NEW ERA OF TRUST, TRANSPARENCY & TAX
T For Trust!
FEATURES
- Selection only through system using data analytics & Al
- Abolition of territorial jurisdiction Automated random allocation of cases
- Central issuance of notices with Document Identification No. (DIN)
- No physical interface, No need to visit income tax office
- Team-based assessments and Team-based review
- Draft assessment order in one city, review in another city & finalisation in third city
EXCEPTIONS
CASES RELATING TO:
- Serious frauds, Major Tax Evasion, Sensitive & Search matters
- International tax
- Black Money Act & Benami Property
PM Modi Launches
A PLATFORM FOR TRANSPARENT TAXATION – HONORING THE HONEST
FACELESS ASSESSMENTS
FACELESS APPEALS
TAXPAYERS’ CHARTER
√
Any assessment, other than exception, outside Faceless Scheme will be invalid
√
No intrusive and survey actions by field officers – Only Investigation wing and MS wing can after approval by officer of the level of Chief Commissioner or above
Taxpayer’s Charter
TRUST TRANSPARENCY & TAX
I TRUST MY GOV
COMMITMENT TO TAXPAYERS
- To provide fair, courteous, and reasonable treatment
- Treat taxpayer as honest
- To provide mechanism for appeal and review
- To provide complete and accurate information
- To provide timely decisions
- To collect the correct amount of tax
- To respect privacy of taxpayers
- To maintain confidentiality
- To hold its authorities accountable
- To enable representative of choice
- To provide mechanism to lodge complaint
- To provide a fair & just system
- To publish service standards & report periodically
- To reduce cost of compliance
