Moneycontrol

Budget 2021

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Moneycontrol

Budget 2021

Associate Partners:

  • SMCSamsungVolvo
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Budget 2021-22 should re-evaluate random allotment of cases under faceless tax assessment system: Experts

Delays in assessments have been pointed out by various sectors, especially from the precious metal sector where a specified process is followed for assessment of dore, because of random allotment of assessment cases, say experts.

January 13, 2021 / 03:42 PM IST

While presenting the Union Budget 2019, Finance Minister Nirmala Sitharaman had announced the government’s plans to replace the existing system of scrutiny assessment in the Income Tax department with faceless e-assessment.

While presenting the Union Budget 2019, Finance Minister Nirmala Sitharaman had announced the government’s plans to replace the existing system of scrutiny assessment in the Income Tax department with faceless e-assessment.

Under the faceless income tax assessment system, the sample and documents are sent to remote customs office who may have no understanding of the assessment procedure of dore (the unrefined form of gold and silver), due to which experts believe Union Budget 2021-22 should re-evaluate the present mechanism of random allotment of assessment cases, in order for it to achieve its intent of promoting ease of doing business in India.

In an interaction with Moneycontrol on the upcoming budget, tax experts from Deloitte said delays in assessment have been pointed out by various sectors, especially from the precious metal sector where a specified process is followed for assessment of dore.

"Random allocation of assessments is taking considerably higher time, and this is affecting all the industries (primarily imports). The industry has been facing a delay in clearance of shipments for both the imports and exports, including detention of containers, liability of detention and demurrage charges," Saloni Roy, Senior Director, Deloitte, said.

Delays and demurrage not only add to costs, making then uncompetitive, but also disrupt supply chain, leading to cancellation of export orders, she said. "At least two leading automobile manufacturers, Ford and Hyundai, have represented against delays including the effect on exports."

The customs officials should be appropriately trained to adopt this initiative, and various on-ground issues faced by exporters and importers, such as delay in cargo clearances, should be addressed immediately, she said.

Close

While presenting the Union Budget 2019, Finance Minister Nirmala Sitharaman had announced the government’s plans to replace the existing system of scrutiny assessment in the Income Tax department with faceless e-assessment.

In August, Prime Minister Narendra Modi launched the 'Transparent Taxation, Honoring the Honest'. The Prime Minister had said the ongoing structural reforms initiated by the government had reached new heights. Transparent Taxation - Honoring the Honest would have faceless assessments, faceless appeal and taxpayer charter.

The Taxpayers' Charter released by the Income Tax department said it was committed to provide fair and reasonable treatment, treat taxpayer as honest, provide a mechanism for appeal and review, provide timely decisions, and reduce cost compliance among others.
Kamalika Ghosh
first published: Jan 13, 2021 03:42 pm

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