I-T Dept’s faceless tax assessment facility enabling faster grievance redressal: FM

Finance Minister Nirmala Sitharaman

The faceless tax assessment facility of the Income Tax Department is resulting in faster redressal of taxpayers’ grievances, which is a big step towards ease of doing business, finance minister Nirmala Sitharaman said on Wednesday.

“The faceless assessment system was brought in so that discretion of an officer  does not impact taxpayers. Taxpayers have found great relief and the redressal of grievances is faster. It’s a very big step in ease of doing business and taxpayer convenience,” Sitharaman said at the foundation stone laying ceremony of the Central Board of Direct Taxes (CBDT) residential quarters building in Bengaluru.

The Faceless Assessment Scheme was introduced by the Government of India to facilitate digital processing of income tax returns without any physical interface between the taxpayer and the tax officer. Under this scheme, the Central Board of Direct Taxes (CBDT) established the Faceless Assessment Scheme for Income Tax. This scheme aims to promote transparency, efficiency, and accountability in the assessment process while reducing taxpayer grievances and corruption. The grievance redressal mechanism aims to provide taxpayers with accessible and timely solutions to their concerns, thereby enhancing trust and compliance in the taxation system.

The Central Processing Center (CPC) is a key component of this scheme. It operates as the digital hub for processing income tax returns and conducting assessments in a faceless manner.

“The CPC is located in Bengaluru, which drives the income tax system in the entire country. The entire national faceless scheme runs from Bengaluru,” she said.

Taxpayers submit their returns online, and the CPC processes them electronically, assigning cases to various assessment units across the country. The allocation is done randomly through an automated system, ensuring impartiality and eliminating any scope for discretion or bias.
This digital setup allows tax officers to conduct assessments remotely, without the need for physical interaction with taxpayers. The entire process, from scrutiny to finalisation of assessments, takes place electronically through the online portal. Taxpayers can communicate with the tax department through the portal, uploading documents and responding to queries raised by the assessing officer.

The Faceless Assessment Scheme represents significant strides towards leveraging technology to streamline tax administration, enhance compliance, and improve taxpayer experience in India.