Faceless Assessment And Its Advantage & Disadvantage

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Faceless Assessment And Its Advantage
Disadvantage
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• The faceless assessment scheme was introduced in
  India on 13th August 2020. It is a part of the
  Government of Indias initiative to reduce the
  interface between taxpayers and tax officials.
  The scheme is aimed at reducing the compliance
  burden of taxpayers and making the tax system
  more efficient and transparent. Under the scheme,
  all assessment proceedings are conducted
  electronically without any physical interface
  between the taxpayer and the tax official. The
  taxpayer is required to submit the required
  documents and information online. The tax
  official then reviews the documents and
  information and passes the assessment order
  electronically. India has been at the forefront
  of several initiatives in e-governance, and one
  of its most popular initiatives is Faceless
  Assessment. This revolutionary concept is based
  on the ideology of seamless assessment for
  taxpayersit helps reduce transaction costs,
  eliminates unnecessary human intervention and
  significantly increases efficiency in tax filing.
  But what does this really mean for India? In this
  blog post, we will explore the implications of
  Faceless Assessment and its impact on the Indian
  economy. Well also look at some advantages and
  disadvantages of embracing this new system and
  how it could reshape Indias taxation landscape
  for years to come.

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• FACELESS ASSESSMENT ADVANTAGE Faceless assessment
  is the latest method of conducting tax audits in
  India. This system was introduced by the Central
  Board of Direct Taxes (CBDT) in October 2019 with
  an aim to reduce the interface between taxpayers
  and tax officials, and to make the assessment
  process more efficient and effective. Under this
  system, all communications between the taxpayer
  and the tax department will be conducted
  electronically, without any face-to-face
  interaction. Taxpayers will be able to submit
  their responses to queries raised by the tax
  department through a dedicated portal. The
  faceless assessment system is expected to bring
  several benefits for taxpayers. First, it will
  help reduce human contact and hence the chances
  of corruption. Second, it will lead to faster
  disposal of cases as there will be no need for
  physical hearings. Third, it will make the
  assessment process more efficient as all cases
  will be allocated randomly to officers across the
  country, irrespective of their geographical
  location. The faceless assessment system is a
  welcome step by the CBDT and is expected to bring
  transparency and efficiency in the tax assessment
  process in India.

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• The advantages of faceless assessment in India
  can be categorized below a) Advantages of
  Faceless Tax Assessment for Taxpayers 1.
  Taxpayers can gain access to faster and more
  efficient tax assessments. 2. Faceless tax
  assessment helps to ensure better tax compliance
  and reduce evasion. 3. It ensures that taxpayers
  get rid of the hassles of interacting with the
  tax officials. 4. It provides taxpayers with
  transparency and certainty in the tax assessment
  process. 5. There is no interference of tax
  officials or third party in the tax assessment
  process and helps to reduce discretion. b)
  Advantages of Faceless Tax Assessment for Tax
  Agencies 1. It helps in reducing the time taken
  for processing tax assessments and also reduces
  the paperwork involved.

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• 2. It allows tax authorities to monitor tax
  filings in a more efficient manner and helps to
  identify potential tax evaders quickly.
• 3. It enables tax authorities to reduce the
  chances of human errors and fraud.
• 4. It increases the accuracy of assessments and
  creates consistency in the assessment process.
• 5. It helps tax authorities to reduce costs and
  improve service delivery standards. FACELESS
  ASSESSMENT DISADVANTAGE Although online
  assessment has a lot of advantages, there are
  certain disadvantages associated with it as well.
  One such disadvantage is the lack of human
  interaction. In a traditional classroom setting,
  students are able to interact with their teachers
  and get immediate feedback. However, in an online
  setting, students are not able to benefit from
  this human interaction. This can be a
  disadvantage because it can lead to
  misunderstandings and confusion about the
  material being studied. Additionally, online
  assessments can be impersonal and daunting for
  some students. This can create anxiety and
  stress, which can impact performance on the
  assessment. Faceless assessment has both
  advantages and disadvantages. It can be a useful
  tool for assessing cases. It is important to
  ensure that the assessment is conducted in a
  secure and reliable manner.
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