Page 39 - GSTL_20th August 2020_Vol 39_Part 3

2020 ] NEWS DESK J71
Charter, faceless regime in PM’s big tax reforms
The Income-Tax (I-T) Department will be accountable for its actions and
taxpayers not satisfied with the Department’s working can approach the specific
cell in the (I-T) zone in their area, according to the taxpayers’ charter unveiled by
Prime Minister Narendra Modi on 13-8-2020.
“An Income Tax Officer will not get an opportunity to harass a taxpayer.
Scrutiny will be allotted on a random basis. The assessment of a taxpayer in
Mumbai could well be carried out by an officer in Chennai. It will put an end to
needless litigation. This platform has big reforms like faceless assessment, face-
less appeal, and the taxpayers’ charter - which are big reforms,” Modi said in his
inaugural address via video-conferencing.
“It will help to reduce Government interference. Our effort is to make
the tax system seamless, faceless and painless.”
The charter enshrines rights of assessees within the Income-Tax Act.
With this, India has joined countries like the US, Australia and Canada, which
have such a provision in their laws.
Union Finance Minister Nirmala Sitharaman said the platform brought
in a transparent, efficient, and accountable tax administration.
“It uses data analytics and artificial intelligence,” she said.
The Central Board of Direct Taxes (CBDT) has ordered that only officers
in the Directorate of Investigation and Commissionerates of the Tax Deducted at
Source will act as authority for carrying out surveys.
The facility of faceless appeal will be rolled out on September 25.
The charter has a time-bound process for dealing with the taxman, a re-
dress mechanism, and provisions for respecting privacy and maintaining confi-
dentiality.
It also lists out the obligations of the taxpayer.
The I-T Department had rolled out faceless e-assessment in October last
year, covering Mumbai, New Delhi, Kolkata, Chennai, Bengaluru, Hyderabad,
Ahmedabad, and Pune. Communication to the taxpayer goes from the National
e-Assessment Centre (NeAC) in New Delhi.
The NeAC allots cases at random to assessment units.
Of the more than 58,000 cases picked for faceless assessment, 8,700 have
been disposed of, with a target for completion by October.
Abhishek Rastogi, Partner, Khaitan and Co., said while the faceless as-
sessment was a great beginning, there could be various challenges in terms of the
appropriate explanation that were needed to be understood by the person as-
sessing the tax liability. “It is hoped that the new system will provide appropri-
ate opportunity for the taxpayer to explain the complex transactions and get a
fair order in a time-bound manner,” he said.
Modi added that over the past six years, the I-T Department had reduced
complexity, lowered taxes, reduced litigation, and increased transparency, tax
compliance, and trust.
Scrutiny by the Department reduced to 0.25 per cent of the I-T Returns
(ITRs) in the assessment year 2018-19, from 0.55 per cent in the previous year,
shows the data by the Finance Ministry.

GST LAW TIMES  20th August 2020  39