Book Description

This book analyses the faceless taxation regime under the Income-tax Act, 1961. The book combines legislative analysis with real-world applications, featuring step-by-step guides, real-time case studies, and illustrative tools like infographics and tables to simplify complex processes. It thoroughly addresses critical issues such as issuing and responding to notices, personal hearings via video conferencing, and overcoming technical challenges, making it helpful for understanding the intricacies of the faceless regime. It is designed to provide actionable strategies and enhance professional practice; this book helps understand the digital transformation in tax administration with confidence and efficiency. It is a detailed guide for tax professionals, accountants, legal practitioners, assessees, and tax administrations, providing practical insights into managing faceless assessments, appeals, and penalty proceedings. The Present Publication is the 7th Edition and has been amended by the Finance (No. 2) Act, 2024. This book is authored by Mayank Mohanka, with the following noteworthy features: • [Comprehensive Analysis of the Faceless Regime] This edition provides exhaustive coverage of every aspect of the faceless system, including: o Faceless Assessments under section 144B o Faceless Appeal Scheme, 2021 o Faceless Penalty Scheme, 2021 o It also incorporates detailed explanations of the latest legislative schemes, such as: § e-Assessment of Income Escaping Assessment Scheme, 2022 § Faceless Jurisdiction of Income-tax Authorities Scheme, 2022 § Other Developments in the Faceless Domain • [Practical Guidance and Real-Time Case Studies] The book moves beyond theoretical analysis by providing practical guides and step-by-step instructions for handling various facets of the faceless regime. It includes real-time case studies illustrating how to approach and resolve common issues. Readers will find valuable insights on managing notices, responding to faceless assessments, and presenting appeals with qualitative e-submissions • [In-Depth Guides on Specific Issues] This guide provides comprehensive step-by-step procedures for understanding the faceless regime: o Handling Notices and Orders – Detailed guidance on issuing, dispatching, and serving notices and orders under the faceless regime o Personal Hearing via Video Conferencing – Explains the procedures and rights associated with personal hearings through video conferencing, including how to request and conduct these hearings effectively o Overcoming Technical Constraints – Practical tips on addressing space limitations in uploading supporting documents and overcoming other technical challenges associated with e-proceedings o Critical Analysis of Litigation Issues – Analysis of recurring litigation issues such as disallowances, additions based on AIS information, and handling of complex assessments related to capital gains, foreign accounts, and unexplained income • [Illustrative Tools and Visual Aids] The book employs a variety of illustrative tools, including infographics, tables, and visuals, to simplify complex legislative provisions and procedural nuances • [Comparative Analysis of Traditional vs Faceless Regime] A dedicated section provides a comparative analysis of the traditional assessment and appeal processes versus the faceless regime, highlighting the significant procedural changes, practical differences, and the shift towards a fully digital interface • [Comprehensive Appendices and Additional Resources] To further support its readers, the book includes detailed appendices covering: o Relevant provisions of the Income-tax Act related to faceless assessments o Prescribed authorities and assessment centres involved in faceless assessments o Clarifications and guidance issued under various faceless schemes, ensuring that users are fully informed of the legal and procedural backdrop of their activities • [International Best Practices in Tax Administration] The book extends its coverage to discuss global trends and international best practices in digital tax administration, drawing parallels with the Indian context. This section provides readers with a broader perspective on the global shift towards faceless and digital tax systems • [Frequently Asked Questions (FAQs)] A comprehensive FAQ section addresses common concerns and procedural uncertainties that assessees and tax practitioners may encounter under the faceless regime. This includes FAQs on standard operating procedures (SOPs), handling of rectification applications, and responses to outstanding demands, offering practical solutions to frequently faced challenges The structure of the book is as follows: • Preface o Introduction to the revised seventh edition o The purpose and scope of the book focus on the comprehensive coverage of the faceless taxation regime • Section I – Overview of the Faceless Taxation Regime o Faceless Assessments —A New Era in Taxation § Introduction to the faceless assessment regime and its transformative impact § Key characteristics and benefits of faceless assessments § Comparison between traditional and faceless assessment processes o Legislative Changes and Amendments § In-depth analysis of the amendments brought by the Finance (No. 2) Act, 2024 § Explanation of new schemes: Faceless Assessment, Faceless Appeal, and Faceless Penalty o Standard Operating Procedures (SOPs) § Frequently Asked Questions (FAQs) on SOPs for faceless assessments § Practical insights into the roles and functions of Assessment Units • Section II – Practical Guides to Faceless Procedures o Navigating e-Proceedings § Step-by-step guidance on using the new e-Filing portal and e-Proceedings utility § Real-time screenshots and practical examples o Principle of Natural Justice in Faceless Assessments § Importance of adhering to natural justice in the faceless regime § Legislative safeguards and implications for tax practitioners o Personal Hearings via Video Conferencing § Procedures for requesting and conducting personal hearings § Legal jurisprudence and practical tips for effective video conferencing o Issuance and Service of Notices and Orders § Detailed guidance on the valid issuance, dispatch, and service of notices and orders § Case studies on handling notices under the faceless regime • Section III – Handling Common Issues and Challenges o Overcoming Technical Constraints in Faceless Assessments § Strategies to manage space limitations and technical issues when uploading documents § Solutions and best practices to enhance compliance o Addressing Litigation Issues in Faceless Regime § Real-time case studies on common litigation issues such as disallowances, additions, and reassessments § Practical solutions for assessees and practitioners o Managing Reassessments and Appeals § Guide to faceless reassessments and appeals § Comparison between conventional and faceless appeal processes § Step-by-step instructions for filing and managing appeals online • Section IV – Practical Case Studies and Real-World Applications o Case Studies on Specific Assessment Issues § Addition based on AIS information § Disallowance of deductions and claims, including capital gains and foreign income § Handling complex assessment cases through practical examples o Penalty Proceedings Under the Faceless Regime § Overview of the Faceless Penalty Scheme and its practical implications § Case studies on penalty for under-reporting and misreporting of income • Section V – Appendices and Additional Resources o Appendices § Relevant provisions of the Income-tax Act for faceless proceedings § Prescribed authorities and assessment centres § Clarifications and guidelines from the CBDT o FAQs and Best Practices § Comprehensive FAQs on the faceless regime § International best practices in digital tax administration § Summary of key tips for successful navigation of faceless assessments and appeals