In the era of digital governance, the Income Tax department has introduced the ‘e-proceeding’ facility, revolutionizing the traditional assessment proceedings. This initiative aims to simplify communication between the assessing authority and taxpayers through electronic means, eliminating the need for physical visits to Income-tax offices.
Understanding E-Proceedings: A Game-Changer
The ‘E-Proceedings’ functionality is a key feature on the ‘e-filing’ portal, offering a seamless way for taxpayers to engage with the assessment process. All official communications, including letters, notices, and orders, are sent directly to the taxpayer’s registered account on the portal. This shift to electronic communication not only saves time but also provides taxpayers with the flexibility to respond to departmental queries 24/7 from anywhere.
The entire assessment process becomes accessible online, fostering a ‘faceless,’ ‘paperless,’ and ‘jurisdiction-less’ environment. Embracing e-proceedings not only benefits taxpayers but also contributes to a more eco-friendly approach.
Faceless Assessments vs. Conventional Manual Mode
In the traditional manual mode of assessments, the assessing authority issued notices physically, requiring the taxpayer to visit the income tax office for interactions and document submissions. Contrastingly, under the new ‘Faceless Assessments’ system governed by Section 144B, all communications are conducted electronically through the taxpayer’s ‘e-filing’ account. This eliminates the need for physical interactions between the assessee and assessing authority.
The fundamental shift lies in the mode of interface – from physical and personal in conventional assessments to electronic in faceless assessments. This transition enhances efficiency and reduces the burden on taxpayers.
Income Tax Units in Faceless Assessments
The new ecosystem of Faceless Assessments operates through various units:
- National Faceless Assessment Centre
- Assessment Unit
- Technical Unit
- Verification Unit
- Review Unit
The National Faceless Assessment Centre takes charge of all electronic communication and interfaces with the assessee, streamlining the entire process.
E-Proceedings: Responding to Notices and Queries
The ‘e-Proceedings’ service allows taxpayers to respond to various notices and communications issued by the Income Tax Department and Central Processing Centre (CPC). These include, but are not limited to:
- Defective Notice under Section 139(9)
- Intimation under Section 245 – Adjustment against demand
- Prima Facie Adjustment under Section 143(1)(a)
- Suo-moto Rectification under Section 154
- Notices issued by Assessing Officer under Section 143(2)/142(1)/148
- Seek clarification communication under Section 133(6)
The permissible size for a single attachment is 5 MB, and if multiple documents need to be submitted, they can be zipped together with a maximum size of 50 MB.
Navigating the E-Filing Portal
Responding to notices and viewing past responses requires logging in to the e-Filing portal. The response submitted through e-Proceedings must also be e-Verified by the taxpayer.
Outstanding Demands: Understanding and Responding
Taxpayers can check for outstanding demands through the e-Filing portal under ‘Pending Actions’ and ‘Response to Outstanding Demand.’ Responding to outstanding demands is crucial to confirm or dispute the correctness of the stated demand. Disagreements can be addressed by selecting the appropriate option and providing necessary details.
Rectification Requests: Correcting Mistakes
Rectification requests are submitted through the e-Filing portal for errors apparent from the record. These include corrections to total tax liability, gross total income, total deductions, and personal information. Different request types cater to specific rectification needs, such as tax credit mismatch correction or reprocessing the return.
Making Payments: Settling Outstanding Demands
Tax payments related to outstanding demands can be made through various online and offline methods available on the e-Filing portal. Methods include net banking, debit cards, payment gateways, NEFT/RTGS, and over-the-counter payments.
Conclusion: A New Horizon in Tax Compliance
In conclusion, the advent of e-Proceedings and Faceless Assessments signifies a paradigm shift in income tax procedures. The digital transformation not only eases the burden on taxpayers but also enhances the efficiency and transparency of the assessment process. Navigating the e-Filing portal and understanding the various aspects of faceless assessments empower taxpayers to embrace this new era of tax compliance.
