The Income Tax Department on Tuesday has launched out a “faceless penalty scheme” to have an unbiased and transparent digital faceless mechanism for imposing penalties on tax defaulters.
The government has been trying to make faceless taxation a reality, having introduced faceless assessment and faceless appeals last year.
Aim
The new scheme is to ensure that any order arising from faceless assessment of taxable income is of fool proof and has undergone multiple layers of review before a penalty is confirmed or dropped.
Benefit
One of the officials said, “The system will ensure adequate opportunity to assessees to be heard and also have provisions for review on legal and technical grounds.
A review could also be initiated on the ground of arithmetical correctness of computation of penalty.”
Till the time the National Faceless Penalty Centre, its regional centres and local units are set up, the Central Board of Direct Taxes (CBDT) will direct the National e-Assessment Centre (NeAC) and its units to also act as faceless penalty system, he said.
Faceless assessment of Indirect Tax
“The government was inclined to introducing faceless assessment for indirect taxes as well” said Nirmala Sitharaman last month.
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