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E-Assessment Scheme

This scheme seeks to eliminate the interface between the taxpayer and the income tax department.

Structure of E-Assessment

A. Notice assigned directly to the assessee  by E-Assessment Centre.

  1. Notice Under Sec 143(2) would be served by the Income Tax Department to the taxpayer.
  2. Within a period of 15 days, the response needs to be given to the department.
  3. When you receive the notice under Sec 143(2), you must produce all the documents supporting deductions, exemptions, allowances, reliefs, and other claims made while filing the return.
  4. After considering all submissions, the final order will be passed u/s 143(3) about the tax payable or refund receivable.

Assessing Officer needs to issue a notice to the taxpayer within a period of 6 months from the date of filing of return.

If the taxpayer fails to respond, then the penalty of 10000 shall be levied.

B. Notice assigned to the regional assessment unit by E-Assessment Centre.  

  1. Draft assessment order is prepared by the assessment unit, along with penalty proceedings by original document verification from assessee/anyone else or conducting an enquiry and sent to the National E-assessment center.
  2. National E-assessment center can
    1. Finalize the order and serve along with the notice.
    2. Show Cause Notice to be served to the assessee as to why demand cannot be upheld.
    3. Then assign it to the review unit.

Powers of Jurisdictional Assessing Officer

Once the file has been handed over to the assessing officer, he would have powers for the following.

  1. The imposition of penalty.
  2. Collection and recovery of demand.
  3. Rectification of Mistake.
  4. Giving Effect to appellate orders.

Functions of NeAC


Functions of ReAC


Other Aspects of E-assessment

  1. Communication shall take place through an electronic portal or mobile app.
  2. No personal appearance in the process.
  3. Personal hearing can take place through video conferencing.
  4. Penalty proceedings can be initiated by the assessment unit through the national e-assessment Centre in case of non-compliance of any notice, direction, or orders.

Expected Benefits

  • Ease of compliance of taxpayers
  • No human interface
  • Transparency and efficiency
  • Functional Specialization
  • Improvement in Quality of Assessment
    • A risk-based and focused approach
    • Systematic and specific verification
    • Standardization and quality management
    • Better monitoring
  • Expeditious Dispose of Cases

The above contents are a summary of the first step of government towards a most awaited change in the income tax assessment process to make it easy and to reduce bureaucracy, however tests of the quality of such assessments are still awaited.

If you need any further clarification on E-assessment, please feel free to reach us at contact@msassociates.pro or call us on 080-41633750 or 9880542668.