E Assessment Of Income Escaping Assessment Scheme

The Finance Bill 2022 initiated pivotal changes by proposing to bring reassessment proceedings under the realm of faceless assessment. As a result, the Central Board of Direct Taxes (CBDT), through Notification No. 18/2022 dated 29th March 2022, introduced the E Assessment Of Income Escaping Assessment Scheme, 2022 under section 151 of the Income-tax Act, 1962 ('Act'). This significant scheme has been in effect since 29-03-2022, aiming to streamline reassessment procedures through advanced automation technologies.

The Gist of e-Assessment Scheme, 2022

In a bid to enhance transparency within assessment proceedings, the Faceless Assessment Scheme, 2019 was initially introduced. It was later codified into law by the Taxation & Other Laws (Relaxation & Amendment of Certain Provisions) Act, 2020, through the insertion of section 144B into the Income-tax Act, 1961 (IT Act). Learn more about the Faceless Assessment Scheme and its implications.

Under Section 151A of the IT Act, the Central Government is granted the authority to devise schemes related to assessment, reassessment, and re-computation under section 147, along with the issuance of notices under Section 148 or sanctions under Section 151. This legislative framework empowers CBDT to oversee and implement faceless e-Assessments ensuring greater operational transparency. Discover effective tax planning to minimize income tax liabilities legally.

Section 151A of the Income Tax Act

Section 151A authorizes the Central Government to create schemes aiming at:

Assessment, reassessment, or recompilation under Section 147 (Income-escaping assessment),
Issuance of notice under Section 148 for conducting an income-escaping assessment,
Conducting inquiries, issuing show-cause notices, or passing orders under Section 148A, and
Sanction under Section 151 for issuing notice under Section 148.

This scheme is designed to increase efficiency, transparency, and accountability by eliminating direct interactions between the Assessee and the Income-tax authority where feasible, optimizing resource utilization, and emphasizing team-based approaches based on dynamic jurisdictions. Read about filing salary returns and understanding income tax obligations.

Scope of the E Assessment Of Income Escaping Assessment Scheme, 2022

With effect from 29 March 2022, the Scheme specifies that assessments, reassessments, or recomputations under Section 147 and the issuance of notices under Section 148 are to be executed:

Through automated allocations as per the risk management strategies laid by the Board in Section 148 for notices, and
In a faceless manner as stipulated in Section 144B for assessing or reassessing the assessee's total income or loss.

The official Notification of the Central Board of Direct Taxes (CBDT) can be accessed here: E Assessment Of Income Escaping Assessment Scheme, 2022.

This initiative reflects a broader goal of constructing an efficient tax system while minimizing tax evasion risks. Explore the penalties associated with income tax evasion in India.

Additional insights about navigating tax compliance within your regional context include filing services and the impact of amendments to tax rules. Consider income tax filing services in Kolkata to assist in meeting compliance requirements. Understand the twenty-second amendment rules announced in 2022.

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Frequently Asked Questions

Common questions about E Assessment Income Escaping Assessment Scheme.

The e-Assessment of Income Escaping Assessment Scheme, 2022 is a scheme notified by the Central Board of Direct Taxes (CBDT) under Section 151 of the Income-tax Act, 1962. It aims to bring the assessment, reassessment, or recomputation proceedings under Section 147 (Income-escaping assessment) within the ambit of faceless assessment to enhance transparency, efficiency, and accountability.

The e-Assessment of Income Escaping Assessment Scheme, 2022 is applicable with effect from March 29, 2022, as notified by the CBDT vide Notification No. 18/2022 dated March 29, 2022.

The primary purpose of introducing the e-Assessment of Income Escaping Assessment Scheme, 2022 is to eliminate the interface between the Income-tax authority and the assessee or any other person to the extent technologically feasible, optimize resource utilization through economies of scale and functional specialization, and introduce a team-based assessment approach with dynamic jurisdiction.

The key features of the e-Assessment of Income Escaping Assessment Scheme, 2022 include automated allocation of cases in accordance with the risk management strategy formulated by the CBDT, and conducting the assessment, reassessment, or recomputation under Section 147 and issuance of notice under Section 148 in a faceless manner, as provided under Section 144B of the Income-tax Act, 1962.

The e-Assessment of Income Escaping Assessment Scheme, 2022 aims to improve the assessment process by eliminating physical interface between the tax authorities and the assessee, optimizing resource utilization through functional specialization, and introducing a team-based assessment approach with dynamic jurisdiction. This is expected to bring greater transparency, efficiency, and accountability to the assessment proceedings.

The e-Assessment of Income Escaping Assessment Scheme, 2022 has been notified by the Central Government under Section 151A of the Income-tax Act, 1962, which empowers the government to make a scheme for assessment, reassessment, or recomputation under Section 147 (Income-escaping assessment), issuance of notice under Section 148, and related proceedings.

No, the e-Assessment of Income Escaping Assessment Scheme, 2022 specifically applies to assessment, reassessment, or recomputation proceedings under Section 147 (Income-escaping assessment) and the issuance of notice under Section 148 of the Income-tax Act, 1962. Other assessment or reassessment proceedings may be governed by different schemes or provisions.

The e-Assessment of Income Escaping Assessment Scheme, 2022 is in line with the Faceless Assessment Scheme, 2019, which was introduced to bring transparency to assessment proceedings. The new scheme extends the faceless assessment approach to income-escaping assessment cases under Section 147 and the issuance of notice under Section 148 of the Income-tax Act, 1962.

Under the e-Assessment of Income Escaping Assessment Scheme, 2022, the automated allocation of cases for assessment, reassessment, or recomputation will be done in accordance with the risk management strategy formulated by the CBDT. This risk-based approach aims to prioritize and streamline the assessment process based on the potential risk of income escaping assessment.

The Finance Bill, 2022 proposed to bring reassessment proceedings within the ambit of faceless assessment. In line with this amendment, the e-Assessment of Income Escaping Assessment Scheme, 2022 has been notified by the CBDT to extend the faceless assessment approach to income-escaping assessment cases under Section 147 and the issuance of notice under Section 148 of the Income-tax Act, 1962.