E-assessment scheme 2019

The finance minister has notified the introduction of E-assessment scheme 2019 that seeks human interface elimination between the department of income tax and taxpayer. It includes E-assessment centers creation at regional and national levels for auto allocation of the cases.

There shall be a proper set up of national e assessment centers at New Delhi. NeAC shall have Sixteen Officials in the center and Principal Chief Commissioner of Income Tax shall head this center. The purpose of NeAC is to issue notice to the assessee against whom the proceedings have to be directed. Within 15 days of response notice, the case is allocated with automated system. For functional support, Regional e-Assessment Centers have also been set up.

The scheme also states that communication among assessment centers and taxpayers will be digitally authenticated, purely electronic and eliminate requirement of making personal appearance by the assessees at the centers. The procedure of E-assessment scheme 2019 includes the following factors:

  • E-assessment structure
  • E-assessment modus operandi
  • Penalty process
  • System for appeal
  • Electronic and communication record
  • Taxpayer appearance before units and centre
  • Power of specifying method and course of action

E-assessment is done regarding such class of persons, territorial area, class of cases, class of income, as the CBDT (Central Board of Direct Taxes) states. Here it should be noted that a person without PAN does not come under ambit of e assessment.

Significant definitions:

  • Assessment means assessee’s total loss or income assessment under section 143’s sub section (3) of the Act.
  • The algorithm that allows cases allocation in random fashion is termed as automated allocation system.
  • The algorithm for draft orders’ standardized examination is termed as automated examination tool.
  • Assessment proceedings that take place electronically comes under E-assessment conducted in e-proceeding electronically by using registered account of the assessee in selected portal.
  • Assessee’s registered mobile number indicates his mobile number present electronic account filled by the assessee in user profile of selected portal.
  • Video telephony includes the technological solutions used for transmitting or receiving the audio-video signals at various locations by users.
  • Income tax department’s application software is made for the mobile devices are termed as Mobile app that is downloaded on assessee’s registered mobile number.

Other features of E-assessment:

  • In case of disobedience of any notice, or delay in reply than 15 days of receipt of notice, the assessment unit can initiate penalty proceedings via National E-assessment center.
  • Electronic communication serves as medium for above communication served either in email id or electronic portal.
  • The process does not include any personal appearance but personal hearing request could be made by the assessee.

Authorities of jurisdictional assessing officer:

Once the Assessing officers get hold of the file, following will be the only powers that he would have:

  • Mistake rectification
  • Penalty imposition
  • Demand recovery and collection
  • Giving appellate orders outcome
  • Remand report submission
  • At any point of time during the assessment, the case may be transferred by National E-assessment Centre to Assessing officer who has authority over such cases.

Following are the precautions that one needs to ensure:

  • Consistent fields are used in the return since the process is totally automated.
  • Email id and mobile number provided by the assessee are updated since notification will be given to the assessee via email/SMS.