Faceless Tax Scheme UPSC | All Key Points And MCQ Based On It

Faceless Tax Scheme UPSC | All Key Points And MCQ Based On It – The government’s faceless tax assessment scheme, an attempt to remove individual tax officials’ discretion and potential harassment for income tax payers, has managed to deliver about 24,000 final orders since its introduction in August 2020.

Concept For UPSC 

• The government has now passed the Taxation and Other laws (Relaxation and Amendment of certain Provisions) Act, 2020 on September 2020 to incorporate the Faceless Assessment Scheme under the provisions of Income Tax Act, 1961.

Faceless Tax Scheme UPSC | All Key Points And MCQ Based On It

Key Features Of Faceless Tax Assessment Scheme 

• The National Faceless Assessment Centre (NFAC) will serve a notice to the taxpayer under section 143(2) of the Act.
• The taxpayer should file his/her response to the notice within 15 days of receipt of the notice from the NFAC.
• The NFAC will assign the case selected for the purpose of faceless assessment to a specific assessment unit in any one Regional Faceless Assessment Centre (RFAC) through an automated allocation system (AAS).
• After considering the material available on record, the assessment unit will prepare draft assessment order either accepting or modifying the returned income of the taxpayer and send it to NFAC along with the details of penalty proceedings to be initiated (if any).
• The NFAC will examine the draft assessment order in accordance with the risk management strategy by way of an automated examination tool.
• NFAC will then finalise the assessment and serve the order to the tax payer or issue a show cause notice to the taxpayer. NFAC can even assign the draft order to the review unit through AAS if required.

Patents UPSC | Criteria | Patent Amendment Rule 2020 UPSC

Key Points Of Faceless Scheme

• Transparent Taxation System
• Bringing Transparency In Income Tax System
• Faceless Assessment
• Faceless Appeal
• Taxpayer Charter

Faceless Assessment:

• It aims to eliminate human interface between the taxpayer and the income tax department.

Taxpayer Charter:

•  This outlines the rights and responsibilities of both tax officers and taxpayers.