From UPSC perspective, the following things are important :
Prelims level : Faceless Tax Scheme
Mains level : Ease of IT returns
The government’s faceless tax assessment scheme has managed to deliver about 24,000 final orders since its introduction in August 2020.
Try this PYQ:
Q. With reference to India’s decision to levy an equalization tax of 6% on online advertisement services offered by non-resident entities, which of the following statements is/are correct?
- It is introduced as a part of the Income Tax Act.
- Non-resident entities that offer advertisement services in India can claim a tax credit in their home country under the “Double Taxation Avoidance Agreements”.
Select the correct answer using the code given below:
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Faceless Tax Scheme
- The Central Government introduced the Faceless Assessment Scheme to provide greater transparency, efficiency and accountability in Income Tax assessments.
- It is an attempt to remove individual tax officials’ discretion and potential harassment for income taxpayers.
- All provisions introduced under Faceless Assessment, under the Income Tax Act, 1961, are introduced to-
- Eliminate the interface between the Assessing Officer and the assesses during the course of proceedings, to the extent that is technologically feasible
- Optimize the utilization of resources through the economies of scale and functional specialization and
- Introduce a team-based determination of arm’s length price with dynamic jurisdiction.