E-Assessment Scheme for Income Tax

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What is the e-assessment scheme or faceless scrutiny?

The e-assessment plan was introduced in the Union Budget 2019-2020. The scheme brings a picture of a new way of exploring. As announced, from 2019, tax assessments will be conducted with the help of electronic devices in the presence of the public. Thus, detailed monitoring is possible without the face-to-face contact of the taxpayer and the IT department concerned. This process will reduce the chances of unfair and unfair decisions in certain sections of certain tax authorities; therefore, this will make the income tax more visible.

What is a scrutiny assessment?

Experimental tests investigating patterns of taxpayer complement the filing income tax return(ITR). The audit is conducted on a case-by-case basis or on a case-by-case basis. The Income Tax Department sends taxpayers responsible for the audit check notification, informing them of the observations made on their ITR forms. The notice sent to the audit process is entitled under the income tax notice in terms of Section 143 (2).

Meaning of Electronic mode communication

According to the e-assessment scheme, electronic communication means that all National communications at the Assessment Center with the observer or representative group will be done in electronic mode. In addition, even internal communication between the national e-test centre and the Regional e-assessment centre will be done using the same electronic communication method.

Delivery of electronic records via the e-assessment scheme

Electronic communication mode requires the submission of records such as how the offline testing process requires. This is because the submission of electronic records must be further investigated or maintained for inspection record. However, to make the electronic communication mode reliable and authentic, this communication method is attached with a digital signature and electronic verification techniques. Delivery of this electronic information is provided in the following ways:

  • A copy of the recording is kept in the registered account of the viewer; or
  • A copy of the recording is sent to the person who sees it or to the registered email address of his or her representative; or
  • A copy of the recording is uploaded to the thinker’s mobile app.

In the successful delivery of records, the person who sees or represents them is likewise informed. To seek further verification and to add more to the delivery of electronic communications, it is imperative that the observer responds to the notification with a registered account. In the successful submission of feedback, it is accepted.

Procedure for faceless e-assessmentE-Assessment Scheme for Income Tax

The process is as follows:

  • The online assessment inspection will issue a notice to the person concerned for the specific reason that the incident took place under a notice under section 143 (2) of the Income Tax Department.
  • A thinking person is required to respond to this notice within 15 days from the date of receipt.
  • Upon receipt of the respondent, the National e-assessment centre will assign a critical case through an automated case system.

When submitting a case from a National e-assessment Center, a regional e-assessment centre may request a national centre for the following:

  • Seeking the required information such as documents and evidence from the observer. In this application, the national institution may issue a notice to the provider by providing the requirement of the regional institution to certify by enabling the automatic allocation of verification cases in the legal verification unit. Obtaining technical assistance from the technical unit in accordance with the automatic case distribution. This technical assistance will then be allocated to the technical unit at the regional centre.
  • Based on this information and support from the National e-Assessment Center, the regional centre will then prepare an evaluation order framework, which will accept the ITR submitted by the observer or modify the ITR. This document is now being sent to the National Examination Center via e.
  • The National e-Assessment Center will also review this draft directive by reviewing it with an automated assessment process. For this reason, the agency will then complete the inspection order and may issue a notice to the person being charged to pay fines if any action is due to a change made to the ITR. Alternatively, the observer may also be given the opportunity to clarify how his or her ITR should not be obtained in terms of drafts. In some cases, drafts may also be submitted for review to review units at any of the regional e-assessment centres.

What happens after the completion of the e-assessment?

Completion of the e-assessment process takes place when the National e-Assessment Center transfers all electronic records to the relevant affidavit or ‘AO’. Depending on the submitted framework, the inspecting officer may take one of the following steps:

  • It can impose a fine
  • You may want to collect or refund the required tax.
  • May he correct the mistake of the tenant.
  • It can respond to complaints made.
  • It can submit reports to the commissioner, the surveyor the court for each case.
  • I would like a proposal to introduce a prosecution.
  • We can look forward to the decision taken by the National e-assessment centre.

How is the new e-assessment scheme different from the offline scrutiny assessment?

E-Assessment Offline Scrutiny
Communications in the e-assessment model of scrutiny take place in electronic mode via emails and video conferencing. As per the offline scrutiny, method communications take place via notice and paper works.
In this method of income tax scrutiny, no face to face interaction takes place between the IT department and the assessee. The offline scrutiny method may require the accession to visit the Income department in person if the need for it arrives.
The e-assessment scrutiny compromises various functional units such as the National e-assessment centre, Regional e-assessment centre, review unit, verification unit, and technical unit. The assessment, as per this method, involves only the assessee and the assessing officer or the AO.
This mode of automated faceless scrutiny is fair and reduces the chances of conspiracy. This method involves a higher risk of biased decision making on the part of the tax officer in concern, based on his personal interaction with the assessee.

FAQs on E-Assessment

✅ What is E-assessment in income tax?

The E-assessment tax is a new form of tax assessment, which was announced in the interim budget for 2019-2020. In this way, the ITR test returns and its taxpayer filing patterns are performed without a face-to-face display with the help of electronic communication mode. To know more about the E-Assessment of income tax, contact Dialabank at 9878981144.

✅ What is the faceless E assessment?

Faceless e-assessment is a form of tax assessment that does not require the observer to visit the tax department through an inspection process. Depending on this method, taxpayers may respond to the Income Tax Notice using electronic means such as emails.

✅ Which mode of e-assessment is better?

Compared to the offline method, the online test mode called seamless surveillance is better in terms of transparency. This is because online-based testing takes place without human contact but with an automatic electronic connection. Thus, the potential for discriminatory, unfair and illegal decisions on the part of a tax official is slim.

✅ Is the e-assessment scheme authentic?

Advance Tax is calculated using the fair value of the total tax on the estimated individual income for that year.

✅ Can a salaried person pay advance tax?

Yes, the e-assessment taxless income tax assessment is a reality as this communication method is attached to a digital signature and technical verification strategies.