The Economic Times
English EditionEnglish Editionहिन्दी
| E-Paper
Search
+

    Lack of clarity over restructuring under faceless assessment scheme leads to chaos

    Synopsis

    The Central Board of Direct Taxes (CBDT) sub-sections are working on identifying officers that will be moved to different locations as part of the re-organisation, said people aware of the developments, adding that the exercise would have to be completed within two days.

    Getty Images
    Under faceless assessment, power of survey and seizure under the Income Act will be exercised by the Investigation Directorates and the tax deducted at source (TDS) charges only, and cases related to central charges and international tax have been kept out of the ambit.
    Income tax field offices are yet to receive orders from the top on re-organisation of units under faceless assessment scheme, leading to uncertainty.

    The Central Board of Direct Taxes (CBDT) sub-sections are working on identifying officers that will be moved to different locations as part of the re-organisation, said people aware of the developments, adding that the exercise would have to be completed within two days.

    “Orders are expected by 19th, but which officers will have to move and to which locations is still unclear,” said an official, asking not to be named.

    Another official said that many officers were continuing to work from home amid the Covid 19 pandemic, but may still have to shift locations when the re-organisation orders come in. “Faceless assessments can be done from anywhere, so shifting of officers may not be needed, but as part of the re-organisation several are expecting transfers,” the official said, requesting anonymity.

    Prime Minister Narendra Modi initiated the faceless assessment scheme along with the taxpayers’ charter on August 14, aiming to bring transparency in tax administration. CBDT has been piloting faceless assessment since October 2019 and has processed over 8,000 cases as of July.

    In order to implement the scheme pan-India, the National e-Assessment Centre (NeAC) has been set up which will direct about 30 Regional e-Assessment Centres (ReAC) across the country.

    In some cases, regional offices have been merged, for example Gurgaon with Faridabad, moving manpower from one centre to another while in some cases manpower has been increased in smaller centres such as Bathinda, Shimla and others, insiders added.

    The CBDT has also clarified that rectification proceedings, demand collection management, tax recovery proceedings, proceedings to give effect to appellate orders among others will remain with the field officers, under the scheme.

    But lack of clarity for officers on the ground could become an impediment to implementation of the scheme. “Officers have to be taken on board… else there can be unwarranted delays,” a third official said.

    Under faceless assessment, power of survey and seizure under the Income Act will be exercised by the Investigation Directorates and the tax deducted at source (TDS) charges only, and cases related to central charges and international tax have been kept out of the ambit.
    (Catch all the Business News, Breaking News Events and Latest News Updates on The Economic Times.)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Also Read

    12 Comments on this Story

    ivcu199064 days ago
    Please scrap all existing present Income Tax, GST, professional Tax, Wealth Tax etc. Introduce New Simple Easy Innovative Total Gross Turnover Tax and Wealth Tax without giving any exemption to any person/entity and to any type of business/income. Fix Turnover Tax rate at 1% - 12% depending upon total turnover/income and type of products and services. For sin/ luxury/import goods and services fix the Turnover tax rate with minimum of 80% and automatic power to increase the rate of tax on such goods and services to any extent without prescribing any maximum limit. In case of Wealth Tax fix the rate of of tax from 0.001% to 8% depending upon the wealth of person/entity. For individuals use Aadhaar number and for others give Vyvahar number and on every receipt of money excluding repayable principal loan amount by any one will becomes their Gross Turnover or Income and every one has to pay tax on each such credit by themselves without collecting from customers depending upon their applicable rate of tax immediately. Scrap all existing all Taxes and all types of cards, GST/CIN/DIN etc and make simple Tax system. By doing this every payment becomes receipt and every one has to pay Turnover Tax and Wealth Tax. At present even though people are paying different types of taxes they are unable to find out how much amount of tax they have paid to the government. By introducing new Tax on Gross Turnover/Income and Wealth Tax every one will be able to find out how much amount of tax paid by them to the Government during the year. All are required to pay taxes as it is their duty to contribute for Nation Building. By doing this all our people will be happy and when our people are happy our entire country will be happy. Please note that it is our personal opinion and thinking differs from person to person and from time to time.
    Sandeep More64 days ago
    The intentions of the Government has to be commended and its strict implementation will benefit the masses tremendously.
    Nemani Hanumanta Rao65 days ago
    I agree with KK
    The Economic Times