Analysis of Faceless Assessment System Implemented by Income Tax Department - Some Practical Observations

Abstract

The Government of India has implemented Faceless Assessment system to replace manual scrutiny in Income Tax Department. The issues raised in scrutiny are verified virtually based on available materials. As human interface is reduced, communication gap is a major issue between assessee and assessing officer. Various court verdict has reversed the decisions given by the assessing officers. The aim of this study is to analyses the perception of the assesses pertaining to Faceless Assessment. The study also checks the transparency concerns as compared to the earlier system. The key findings of the study depicts that the themes like communication and transparency majorly impact the assessee’s perception of the FAS. Along with the positive & negative perception it also includes a suggestive perception. The present study contributes to a body of knowledge by suggesting an all-inclusive categorization of assessees’ perception about the FAS. It also investigates the possible ways for smooth functioning of the system and productive revenue generation. The present study is limited to only two dimensions, i.e., communication and transparency.

Keywords: Income Tax, Faceless Assessment, Scrutiny Assessment, Assessee, Communication & Transparency

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