The National E – assessment scheme was launched to make income tax assessment faster, smoother and hassle – free. The system focuses on eliminating the middle men between the tax payer and the officer. It aims at communicating directly to the tax payer when an issue arises in the process of tax assessment.
Highlights of the scheme
- The system generated uses digital technology for risk management. Artificial Intelligence, Automated examination tools and machine learning are predominantly used in framing the system
- The scheme aims at removing physical interface between assessing officer and tax payer
- The chief commissioner of the Income Tax department will head the Center in New Delhi
- The regional E – Assessment Centers are to be established in Chennai, Mumbai, Kolkata, Pune, Ahmedabad, Hyderabad and Pune.
Working of the scheme
The tax payer receives notice under section 143(2) if he under reported his income or stated losses. The notices will be sent electronically through his registered e – mail. He is provided with a duration of 15 days to reply to the notice
The tax payer is not required to appear physically. He is to reply through his registered account for which he receives an acknowledgement from the NeAC (National e – Assessment Center)
Section 143(2) of Income Tax act of India
The section allows the Income Tax Department to send 3 types of notices to the tax payers. They include
- Limited Scrutiny – These notices are sent when there is a mismatch in reporting. Here the scrutiny is restricted to a particular area of the tax payer’s return
- Complete Scrutiny – In these notices the tax payers return are subjected to complete scrutiny.
- Manual Scrutiny – These are notices that are issued based on predefined criteria. These criteria are listed by the Central Board of Direct Taxes.