"IT department brings out faceless penalty scheme"

13Jan,2021

"IT department brings out faceless penalty scheme"

The income tax department has brought new faceless penalty scheme. The department has mentioned that it will undergo multiple layers of review and research before a penalty is confirmed is applied. The department also said that under the scheme, a National Faceless Penalty centre and various regional units will be set up. In 2019 a programme was conducted by the tax department on faceless or e-assessment to understand more about the eliminate personal bias and subjectivity in tax assessment proceedings. A faceless appeal scheme as introduced by the faceless assessment which was later complemented.
The tax department has stated that around 58,000 cases was been identified in the phase 1 in the final order has been passed in the more than 24,700 cases through faceless system. Pandey has stated that only 6%of the cases which is 1500 cases has been undertaken and necessary action has imposed like penalty.Direct and indirect tax authorities have been increasingly relying on automation and technology for assessments. This is supported by extensive data collection about transactions in the economy by way of reporting requirements placed on various agencies and by collection or deduction of taxes at source. This enables the authorities to detect mismatches and quickly identify tax irregularities.
The hard and the effort of the income tax department and the GST will soon bring a great change in the tax base.