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

Faceless assemnet and appeal

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

Ease of compliance for taxpayers

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

Reduction in tax rates & simplification of direct tax laws

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

Ensuring better compliance & transparency

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

Widening the Tax Base

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

TRUST, TRANSPARENCY & TAX

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

A NEW ERA OF TRUST, TRANSPARENCY & TAX

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

A PLATFORM FOR TRANSPARENT TAXATION - HONORING THE HONEST

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

TRUST TRANSPARENCY & TAX

More Under Income Tax

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