According to a CII survey, the majority of firms believe that faceless assessment will strengthen revenue collection efficiency, transparency, and accountability. Around 88 percent of those surveyed believe that faceless assessments will assist the government to achieve its goal of decreasing interface and lowering unfavorable tax practices.
The CII conducted research to measure industry views on the success of the faceless assessment method after one year, and the results demonstrated overwhelming acceptance for the novel approach.
“The Transparent Taxation Platform, particularly the faceless assessment scheme, has gone a long way toward convincing businesses that the tax policy and administration system is fair and data-driven,” stated Chandrajit Banerjee, General Director of the Confederation of Indian Industry (CII).
Despite the difficulties posed by Covid with both the tax administration and consumers, more than 70% of individuals said they had an excellent or good experience with faceless assessments.
When compared with the previous physical tests, almost 73% of responders thought that faceless assessment saved them time.
This facility has shown to be extremely beneficial, particularly during times of pandemics. Approximately 67% of individuals said the final evaluation order under faceless assessment was better than previous physical scrutinizing assessments. The increased confidence of taxpayers in the new scheme is reflected in the favorable comments from two-thirds of respondents. The vast majority of responders thought the questions were focused and pertinent to their situations. Many responders, however, noted that there seemed to be a few roaming questions.
It’s a great start, but to gain taxpayer trust, the government may need to avoid phishing and roaming queries in the future, according to the CII.
The majority of participants did not believe that a personal hearing was necessary at any point during the assessment process. This indicates taxpayer faith and supports the government’s ambition that faceless assessments will provide taxpayers with comfort and efficiency.
Prime Minister Narendra Modi introduced the “Transparent Taxation – Honoring the Sincere” platform in August last year here to increase the efficiency, clarity, and integrity of the assessment, appeal, and penalty processes under the Income Tax Act. Faceless assessment, voiceless appeals, and the Taxpayers’ Charter are all part of the platform (TC). All three works together to provide a stable system for taxpayers. The new program entails a step-by-step procedure for conducting scrutiny assessments using technology to facilitate contact between the taxpayer and the tax authorities.
It also features a dynamic jurisdiction procedure and a team-based assessment. The program mandates that all communications between the taxpayer and the tax administration be conducted solely via electronic means. The Central Board of Direct Taxes may also provide a documentary improved education for personal hearings on demand in specific instances.
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