Faceless Assessment & Appeal Service
With Faceless Tax Assessment Scheme 2019, All Assessment Procedures such as Notice U/s 148, Reassessment, Intimation, Notice for Non-filing of the return, Notice for defective return will be handled in a faceless manner, Similarly, even the Appeal proceedings such as Appeal to the commissioner and Appeal to an Income tax tribunal will also be handled using the faceless platform.
So now the location and Contacts of Professionals handling your case stand immaterial, What is the single most important criteria to appoint your CA to defend you is the knowledge and Expertise.
MGR & CO, Chartered Accountants with more than 45 Years of experience and expertise in handling Assessment and Appeal procedures, can bring on table unmatched expertise to prepare, submit and defend your Income-tax Notices, in Faceless Arena,
Our Packages
We provide the following services with regards to Faceless Assessment and Appeal.
Second Opinion
Let you understand that your current CA/ Professionals Approach to handle the Notice of Appeal is correct or any modification required
Fees Rs.5000
FAQs
Que 1: Are there going to be big changes in the Procedure of Faceless Assessment Or Appeal?
- No. The procedure and governing sections and Rules are not changing. The only thing which is changing is that clients or their representatives need not visit the Income-tax department physically.
Que 2: Can I reply to my Notice myself?
- Yes of course, However you should have a clear understanding of what you are doing, Being a Quasi-Judicial Process, You can’t claim or retract back from documents or stat. So Always advisable to consult a professional, in Faceless Assessment and Faceless Appeal cases
Que 3: My Local Jurisdiction for income tax is Delhi, Can you handle my case from Mumbai?
- Yes, In Faceless Assessment and Appeal there is no limitation of physical presence
Que 4: However, if there is a need for physical representation required?
- First of all, the chances of Physical Appearance in Faceless Assessment and Appeal Scheme 2019 is Rare, however, if the need arises some representation from our network firms can handle it.
Que 5: Why was the faceless assessment scheme 2020 Required?
It was noticed by the government that under income tax assessments, there are many assessees who are being harassed by tax officials for their own benefits. So, to provide better transparency, efficiency, and accountability, the government has taken out the interface between assessee and assessee officers by starting faceless tax assessments. In other languages, now under e-assessment scheme 2019, if an assessment notice has been sent to the assessee, he would not be required to go to the income tax office for assessment proceedings. The scheme came into force on 7th October 2019.
Earlier, faceless compliance and faceless assessment were possible only in the case of scrutiny assessment which was defined under section 143(3) however now under faceless assessment scheme 2020, the government has widened the scope of faceless scrutiny and now E-assessment is also possible in the case of best judgment assessment held under section 144.
Que 6: What is the Most important Change that will be Brought for Assessees by Faceless Assessment?
The Most Important Change is now that your tax consultant and the Assessing officer can not collude and cheat you, As Now the Talent of CA or Tax Consultant Handling your case will matter, Not Contacts. You can assume a fair and transparent assessment and avoid being a victim of High handedness of Income-tax officers, and Avoid paying up taxes or penalties which you should not be Paying, Next Big thing is you can choose the Best Talented CA Firm across India at Fair Professional Fees,
We MGR & CO., Chartered Accountants are also such a firm that handle cases on a Fact and evidence basis and not on a contact basis, You can reach out to Our Partner CA Arun Tiwari @ akt@mgrnco.com or Call for an appointment to explain your case @ 9372644735
Que 7: What are the main reasons for the Issue of Tax Notices Under the Faceless Assessment Scheme?
Reasons for Notices can be one or more of the following:-
- Tax Return Not Filed, while you are Eligible to file IT Return
- Any Income is not included in the return
- Improper or Incomplete information in IT Return filed
- Big Value Transactions, Like Buying/Selling a House,
- Non-Resident Indian, Have Indian Income but not filing Return
- Any Other Clarity IT Dept wants from You.
Que 8: How to Avoid Tax Notices?
Prevention is always better than cure So if you avoid the reason mentioned above you can avoid getting a Notice. If any confusion seek the advice of an Expert CA ( They may charge some fees but that will be much better than spending on the handling of notice and paying huge tax and penalties later). You can contact CA Arun Tiwari @ akt@mgrnco.com for a free consultation on a general topic.
Que 9: How to Know if a Tax Notice is genuine?
How to Know if a Tax Notice is Genuine or a Scam? Simply Check there should be 20 Digit DIN (Document Identification Number) Mentioned on Each page of the Notice, If it is missing Don’t Bother to reply
Que 10: What to do if you Receive a Call and the person tells you he is from Income Tax?
Simply listen to them and politely ask them to send the Notice so that you can discuss it with a CA and Reply back, Don’t take any action over the phone. Also in no condition, an Income tax officer will ask you to reply without issuing a proper Notice either physically or electronically ( On your email Id) after Receiving first thing to do is to check DIN no as mentioned above and then Contact a Qualified CA firm who has expertise in handling Notices.
Que 11: Can any Tax Consultant or CA can take care of Tax Notices Under Faceless Assessment Regime?
Technically Yes, But Practically No, Notice Reply and Notice Handling is a specific work, It requires Expertise to understand the issue and reply in a proper and professional way, In Other Words, it requires much more experience and expertise than just filing an IT Return.
Every word or the way your reply has been drafted can increase or decrease your tax Liability by a good margin. Hence take IT notices very seriously and choose an experienced CA to Handle them. Ask me Question
Que 12: Which sections are used for sending the intimation under faceless assessment?
As normally intimation is sent under section 143(1) of the income tax, In faceless assessment the same section is used for intimation which is as follows:
Section 143(1): Intimation: When an assessee filed its income tax return, the same will get processed electronically by the central processing center (CPC). If there are any or all of the following inconsistencies were noticed in the return, an intimation shall be issued which will be stated the proposed adjustment in the return:
- Any arithmetical error in the ITR filed;
- Any wrong claim, if that wrong claim is clearly noticeable from any information in the ITR;
- Non-Allowance of the loss claimed, if the return of the earlier year for which set off of loss is claimed was furnished beyond the due date of filing of return as specified under section 139(1);
- Disallowance of expenditure as mentioned in the Tax audit report but not entered while computing the total income in ITR.
Que 13: What is the procedure to issue notice for scrutiny assessment?
Section 143(2): Notice for scrutiny Assessment
If the amount, which was claimed in return, of total income and tax is mentioned in intimation under section 143(1), then to ensure that you did not:
- Understated your income
- Claimed loss in an excessive manner or
- Underpaid your taxes
The assessing officer shall issue the notice under section 143(2) for making the scrutiny assessment. This Scrutiny assessment would be made only if the assessee had filed its ITR. As per this notice, the assessing officer will issue a questionnaire under which he will be ask you for information related to your accounts and on the basis of this, he shall finalize your assessment.
Que 14: Under which sections faceless assessment can be made under the income tax act?
In the following sections, faceless assessment can be made under the income tax:
Section 148: Income escaping Assessment
Where the assessing officer has a reason to believe that the assessee has earned the income which he has not disclosed in its return i.e. he has an escaped income, the assessing officer will issue the notice under section 148 for making the assessment under section 147 as income escaping assessment.
Section 142(1)(1): Filing of return of Income
Where the assessee has not filed his ITR within the due date of filing of return as mentioned in section 139 of the income tax act, 1961, then at any time after the due date of filing of the return, the Assessing Officer may issue the notice to the assessee and ask him to file the ITR within the period as mentioned in the notice. Although, the return can be filed up to 31st July or 30th September of the assessment year, as the case may be. However, the assessee can be allowed to file his belated return within the period of last date of the assessment year i.e. 31st March and after that, he could not accept when the assessing officer has issued the notice under section 142(10(i).
Que 15: Which authorities are involved in making the faceless assessment?
For making faceless scrutiny of income tax, the government has defined 2 centers which are:
- National Faceless-Assessment Centre (NFAsC) (Centralised Body): They are authorized to issue the final assessment order. Their office is in Delhi.
- Regional Faceless-Assessment Centres (RFAsC) (Regional Centres): This center has further extended into 4 units which are:
- Assessment Units (AsU)
- Verification Units (VU)
- Technical Units (TU)
- Review Units (RU)
Que 16: What is the role of the assessment unit (AsU)?
The assessment unit will help in assisting the in assessment or analysis of information furnished by the assessee.
Que 17: What is the role of the verification unit (VU)?
Verification unit works for inquiry and cross-verification or recording of statements or examination of books.
Que 18: What is the role of the Technical Unit (TU)?
The technical unit is used for technical assistance or advice on legal, accounting, valuation, or other technical matters.
Que 19: What is the role of the Review unit (RU)?
Review units review the draft assessment order and check whether particular evidence would be material or not.
Que 20: What is the procedure to make a faceless income tax assessment?
The following procedure is used for making the income tax faceless assessment
Step-1 WHERE THE ASSESSING OFFICER HAS NOT to ISSUE NOTICE UNDER SECTION 143(2):
- NFAsC may issue the notice to the assessee under section 143(2): Assessee would have to file its response to NFAsC within 15 days from receipt of the notice.
WHERE THE ASSESSING OFFICER HAS ISSUED NOTICE UNDER SECTION 143(2) OR SHOW CAUSE NOTICE UNDER 144 OR NOTICE UNDER SECTION 148:
- If the assessee has filed its Income tax return under section 139 or under section 142(1)(i) or 148
Or even not filed its return under section 142(1) or against the notice under section 148
NFAsC shall intimate the assessee that assessment shall be completed under section 144B in a Faceless manner
Step-2 After receiving the response from the assessee within 15 days, NFAsC will allocate the proceeding to anyone in RFAsC unit through Automated Allocation System (AAS)
Step-3 During the Proceedings, NFAsC will regularly communicate to all the RFAsC centers and assessee and all the units will also send the information to NFAsC from time to time. All these communications with the assessee will be made in electronic mode.
Step-4 After taking and analyzing all the information which is necessary for making the faceless scrutiny assessment, NFAsC will send such information to Review unit and on this basis, such unit shall prepare the draft assessment order and send back it to NFAsC.
Step-5 Before issuing the final order, the assessee shall be given an opportunity of being heard as to why such an order should not be issued.
Que 21: What are the important key takeaways during the faceless scrutiny assessment?
Following are the Key Takeaways which should be kept in mind while making the assessment in a faceless manner:
- All the communications among any unit including the review unit, assessment unit, verification unit, or technical unit or with the assessee for making the faceless assessment under income tax shall be through National Faceless Assessment Centre (NFAsC).
- All these communications between the National Faceless Assessment Centre(NFAsC) and the assessee, or any of his authorized representatives, or any other person shall be exchanged only exclusively by electronic mode.
- All the notices, orders or any communication to be sent to the assessee shall be made electronically to the assessee’s registered account
- There are no requirements for the assessee to be physically presented in a department in connection with any proceedings before NFAsC or RFAsC or Technical unit/ Verification unit/ Assessment unit/ Review unit;
- Any examination or the recording of statement of the assessee or with any other person will be made by an income-tax authority in a unit only through Video Conferencing or Video-Telephony.
Que 22: What are the benefits of introducing the faceless e-assessment scheme?
Benefits of the faceless e-assessment scheme
Former, the person was essential to visit the Income-tax department for making the scrutiny, which resulted in the increase in corruption cases, which is particularly in higher number cases. Now, this is where the e-assessment scheme comes into the picture. it is faceless compliance through which the assessee would not have a need to face any assessing officer or report his grievance. So, there will be no need for the official or a tax professional for help. The assessee will be able to communicate all the requirements or information to the department from anywhere anytime as he wants with his registered contact number. The assessee will get its response for his query on his registered email id. Ask me Question