Faceless E-Assessment | Honouring the Honest | UPSC

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Faceless E-Assessment _ Honouring the Honest _ UPSC

‘Faceless E-Assessment | Honouring the Honest ’

      HEADLINES:

ROB (Maharashtra and Goa) and PIB (Western Region) jointly organizes a  webinar on ‘Faceless E-Assessment: Honouring the Honest’

      WHY IN NEWS:

Hot from PIB !

MINISTRY? :-Ministry of Information & Broadcasting
SYLLABUS COVERED: GS 3:Scheme : Faceless E-Assessment | Honouring the Honest

      LEARNING: 

For PRELIMS the go through aim and objective of this scheme . NEAC is a new concept here . You have to dig in deep like a rabbit !

For MAINS have a glance at significance which will give you an idea about future scope of such reforms .

      ISSUE: 

Cases of international taxation and those requiring searches and surveys kept outside purview of the scheme

FACELESS E-ASSESSMENT SYSTEM

AIM

  • The faceless E-Assessment system will bring about a paradigm shift by eliminating human interface in income tax assessment.

E-Assessment System based on algorithms and data-analytics and has no human element.   

OBJECTIVE

The new scheme is titled – ‘Faceless E-Assessment: Honoring the Honest’ .

  • “A scheme where assessment would be done without the taxpayer knowing who is doing the assessing officer and there would be no human interface”.

TIMELINE

  • It launch on a pilot basis in October 2019, when around 58,000 cases and 25 Principal Commissioner-IT posts were notified under this scheme
  • Around 15-16% cases have been completed without any hassles till now, despite the pandemic.

FEATURES

  • In this scheme, the core work of assessment has been taken away from the charge of a particular assessing officer.
  • Now instead of any one individual involved in this work, a team would be involved in income-tax assessment.
  • Now, there is an National E-Assessment Centre (NEAC) in Delhi, which works as a nodal office to communicate with the taxpayers.
  • Now, taxpayers can communicate with this one office and similarly, the various departmental units like assessments unit, verification unit, technical unit etc would also be communicating with the NEAC.

THREE BIG REFORMS

1) Faceless Assessment

2) Faceless Appeal

3) Taxpayers’ Charter.

The new system will ensure uniformity of approach and uniform application of law-making.

  • This will put an end to the possible harassment of honest tax-payers.

SIGNIFICANCE

  • Tax reforms for both the direct and indirect taxes have been one of the key focus areas for the Union Government for the past few years.

The shift has been towards rationalization, simplification, greater transparency, ease of paying taxes and creating an overall tax payer friendly eco system.

  • The faceless E-Assessment system will bring about a paradigm shift by eliminating human interface in income tax assessment.
  • In a sense, it is a randomized and automated system based on the concept of dynamic jurisdiction.
  • It eliminates the undesirable practices that emerge when there is a scope for individual discretion and subjective judgement.
  • The anonymous nature of the process will discourage high-pitched assessments and will lead to objective, fair and just assessment orders which can be finalized quicker.
  • Technology intervention in the faceless e-assessment system will also help to build trust within industry and wealth-creators.

MORE ABOUT NEAC

  • They will work in teams for different specialised functions like assessment, verification, technical inputs etc.
  • The cases will be randomly allocated to various assessment units now.

The NEAC has a Risk Management System (RMS) based on certain parameters and pre-defined algorithms.

  • The cases would be distributed on the basis of a computer assisted system.
  • After assessment, the cases will have to be passed through the RMS .
  • Then further course of action would be taken on basis of whether the case is selected for review or not.
  • In case, some modification is suggested in the assessment of a particular case, then NEAC will re-assign it to a new assessment unit.

      IASbhai WINDUP: 

  • It has come at an appropriate time when the digital nature of Income Tax ensures continuity during the COVID-19 pandemic.
  • Now there will be no manual scrutiny, it will be only computer aided.
  • There will be a focus on knowing the law, on skill, rather than knowing the officer or the networking ability of a particular tax consultant.
     SOURCES:THE HINDU & PIB | Faceless E-Assessment | Honouring the Honest

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