Industry Alleges Chaos and Legal Logjam Amid Faceless Tax Assessment System Implementation

Posted on    18 November 2023

Industry Appeals to CBDT for Refinements in Faceless Tax Assessment System to Alleviate Chaos and Legal Implications

In an effort to enhance the efficiency of the faceless tax assessment facility introduced by the Income Tax Department, the industry has reached out to the Central Board of Direct Taxes (CBDT), urging the implementation of key modifications to mitigate chaos and legal complexities.

Tax experts, through a recent representation to the CBDT, expressed concerns about the challenges taxpayers encounter in the face of intricate tax assessment procedures in India. The current faceless system, while designed to streamline processes, has inadvertently led to adhoc additions, leaving taxpayers grappling with uncertainties and a lack of human interface to address notices.


Empower India, a prominent public policy think-tank, has taken a proactive step by addressing these issues in a letter to the CBDT. The letter not only underscores the challenges faced by taxpayers but also provides constructive recommendations aimed at refining the assessment process for greater effectiveness and fairness.

The industry's plea for refinements in the faceless tax assessment system reflects a collective effort to ensure that the implementation of technology-driven processes aligns seamlessly with the needs and expectations of taxpayers. By advocating for a reduction in chaos and legal log jams, the industry aims to contribute to a more transparent, accessible, and user-friendly tax assessment framework.

The ongoing dialogue between industry representatives and the CBDT signifies a collaborative approach towards improving the faceless tax assessment system, highlighting the importance of a balanced and responsive tax administration. As discussions unfold, stakeholders anticipate positive changes that will not only address current challenges but also lay the foundation for a more efficient and equitable tax assessment ecosystem in the future.

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