Assessment under Income Tax | New E-Assessment Scheme

Manner of doing Income Tax Assessment has changed in India

Assessment under Income Tax

In this article we have discussed in detail the major facts about the new e-assessment scheme or assessment under Income Tax. Here are the facts and matter that one needs to understand and know, all about the faceless e-assessment scheme:

  1. New National e-Assessment Centers (NeAC), Regional e-Assessment Centers (ReAC) and four units namely; Assessment Units, Verification Units, Technical Units and Review Units have been created. The function and the roles of the said units are as follows:
  • Assessment Units: Its major role is to make the assessment under Income Tax. It includes identifying the issues and points of materiality to determine the tax liability including the refund claims of the taxpayer or assesses. It seeks for information or clarification on various points or matter to analyze the evidences furnished by assesses.
  • Verification Units: Its main function is to undertake the verification proceedings for which they can enquire, cross verify, examine the evidences or witnesses or documents and record the statements to further initiate the assessment under Income Tax.
  • Technical Units: It provides all the technical help and assistance that the assessment unit requires. This assistance can be provided in various fields like accounting, forensic, legal, management, valuation, transfer pricing etc.
  • Review Units: Its functions include reviewing the draft assessment orders provided by the assessment unit after in-depth assessment under Income Tax. Its task includes reviewing the relevant evidences and material brought on records, arithmetical checking, verifying the incorporation of facts and laws in the drafted orders.
  1. It is the National e-Assessment Center that is liable to build all kinds of communication among the assessment units, verification units, technical units and review units. It is also responsible to communicate or intimate anything to taxpayer or assesses or persons related to the particular case of assessment under Income Tax.
  2. The role and work of the jurisdictional assessing officer is limited once the e-assessment service is completed. The following activities can be undertaken by the officer:
  • Rectifying the mistakes.
  • Imposing any penalties.
  • Collecting and recovering the demands.
  • Giving effect to the issued appellate orders.
  • Making proposals to seek sanctioning for launching a prosecution and filing complaint before the court.
  • Submitting and furnishing remand report or any other report before the Commissioner (Appeals) or Appellate Tribunal or Courts.

Other significant points related to Assessment under Income Tax:

  1. In the new e-scheme of assessment under Income Tax, a person is not required to appear in person in front of the taxation authorities neither their authorized representative is required to be present. Only in special circumstances assesses are required for personal hearing as and when intimated by the assessing officer. Also, it is to be noted that all such personal hearings are carried on through the video-conferencing facility.
  2. The Central Board of Direct Taxes (CBDT) has established a facility of video-conferencing that includes software of the telecommunication application to support any such telephony in any required location deemed to be necessary.
  3. In situations where assesses are not cooperating with the assessment unit for the assessment under Income Tax, the same has to be communicated to the National e-Assessment Center (NeAC).
  4. The NeAC then, initiates the penalty proceedings against assesses for not complying with the furnished assessment notice or direction or order furnished by them. After the response furnished by assesses is thoroughly considered, a penalty is being levied on assesses.
  5. For the purpose of giving effect to the appellate orders and rectifying mistakes etc. the NeAC, transfer the material and records in electronic mode to the assessing officer.
  6. The NeAC, at any stage of the assessment under Income Tax, can transfer the case to a jurisdictional assessing officer which seems to be necessary for a particular case.

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    Author: Anil Agrawal
    EZYBIZ India Consulting LLP, New Delhi. The firm is business and tax consultancy firm providing consultancy in Taxation, Regulatory, Transfer pricing, Valuation, Corporate funding and Business set up matters. He may be reached at 9899217778 or anil@ezybizindia.in.