Income Tax Faceless Assessment FAQs in India

Faceless Income Tax Assessment

Faceless Income Tax Assessment has transformed the manner in which income tax assessments are conducted in India by enabling notices, submissions, hearings and other proceedings to be handled electronically with limited physical interface.

Under the faceless assessment framework, taxpayers can receive notices, submit replies and supporting documents, and respond to queries through the Income Tax e-Filing portal. This has made it important for taxpayers to respond to assessment notices carefully and within the prescribed timelines.

For a detailed overview of assessment proceedings and professional assistance, see our Income Tax Assessment and Litigation Services in India.

You may also read our detailed guide on E-Assessment Procedure and Faceless Income Tax Assessment in India.

It will also infuse confidence amongst the foreign and multinational companies which want to set up business in India however are circumspect about the overall present tax assessment regime of India

In this article, we will try to answer some of the frequently asked questions relating to Income Tax Faceless Assessment for our better understanding.

Q.1. How the taxpayer will know they are being selected for the Income Tax faceless assessment?

Ans. The taxpayer will generally know that the case has been selected for Income Tax Faceless Assessment when an electronic notice or communication is made available in the taxpayer’s registered account on the Income Tax e-Filing portal. In faceless proceedings, communications are generally routed electronically through the National Faceless Assessment Centre (NaFAC). The taxpayer may also receive an alert on the registered e-mail address or mobile number.

Where proceedings continue under the Income-tax Act, 1961 pursuant to the applicable transitional provisions, a scrutiny assessment may involve a notice under section 143(2). The taxpayer should carefully check the notice available on the e-Filing portal and respond within the time specified in it.

Q.2.What should be done in case an Income Tax notice is received?

Ans. When a taxpayer receives an Income Tax notice, the notice should first be carefully reviewed on the e-Filing portal to understand the issues raised, information required and the due date for response.

The taxpayer should submit a complete reply through the e-Proceedings facility within the time specified in the notice and attach the relevant supporting documents and explanations. The response should address each issue raised in the notice clearly and separately.

If additional time is genuinely required, the taxpayer may submit an adjournment/extension request through the e-Filing portal, wherever the facility is available, stating the reason and the additional time required. The extension should not be assumed to be automatic.

Q.3.What happens after the reply for the notice u/s 143(2) is filed by the taxpayer?

Ans. After the taxpayer files a reply, the response is considered by the Assessment Unit under the faceless assessment system. Depending upon the facts of the case:

  1. The Assessment Unit may accept the explanation or seek further information, documents, verification or technical assistance.
  2. If additional information is required, a further notice or questionnaire may be issued electronically through the e-Filing portal.
  3. If any variation or addition prejudicial to the taxpayer is proposed, a Show Cause Notice is issued giving the taxpayer an opportunity to submit a reply. The taxpayer may also request a personal hearing through video conferencing.
  4. After considering the taxpayer’s reply and the material available on record, an income or loss determination proposal is prepared. Where applicable, the proposal may also be reviewed by a Review Unit.
  5. Thereafter, the assessment is completed and the final assessment order, along with the demand notice or refund details and penalty notice, if applicable, is communicated electronically to the taxpayer.

This completes the procedure of Income Tax Faceless Assessment.

Q.4. In case the taxpayer is not satisfied with the Assessment, what should be done?

Ans. If a taxpayer is aggrieved by the assessment order, the appropriate remedy will depend upon the nature of the issue:

  1. Rectification: If there is a mistake apparent from the record, the taxpayer may file a rectification application before the concerned Income Tax Authority.
  2. Appeal: If the taxpayer disputes an addition, disallowance or other finding made in the assessment order, an appeal may be filed electronically in Form 35 before the appropriate first appellate authority, generally the Commissioner of Income Tax (Appeals) or Joint Commissioner (Appeals), as applicable.

Appeal proceedings are generally conducted electronically under the applicable faceless/e-Appeal framework. The taxpayer should carefully check the time limit for filing the appeal from the date of service of the relevant order or notice of demand.

Note on Income-tax Act, 2025: The Income-tax Act, 2025 came into force from 1 April 2026. However, proceedings relating to earlier tax years may continue under the Income-tax Act, 1961 in accordance with the repeal, saving and transitional provisions under section 536 of the Income-tax Act, 2025. Accordingly, references to provisions of the Income-tax Act, 1961 in this article may continue to apply to such proceedings.

Last Updated: August 2026