Faceless schemes and eproceedings
Introduction:
The government has taken steps in transforming its judicial system by going completely faceless and using e-proceedings. Faceless e-proceedings started off as a pilot-based email assessment, but has now gone completely faceless. Even the first appellate proceedings as well penalty proceedings have gone faceless with notices and orders being received on a daily basis. Further, the Govt. has also announced an e-filing portal of Income-tax Appellate Tribunal
Faceless schemes and e-proceedings have become increasingly prevalent since their inception, as the government has introduced several initiatives to improve ease of doing business. These schemes are not solely about e-proceedings, but also encompass the entire process of appellate proceedings, penalty proceedings, and even regular cases. E-proceedings involve the electronic filing of documents, submission and receipt of evidence, and provide users with real-time access to proceedings, eliminating the need for physical presence in a courtroom.
Faceless e-proceedings in Income Tax India aim to conduct tax proceedings with taxpayers in a virtual, online environment, without any physical interface between the taxpayer and the tax authorities. This system was introduced by the Income Tax Department in India as part of its egovernance initiatives to make tax assessments more transparent, efficient, and free from biases.
The Faceless E-proceedings system is intended to reduce the scope for corruption, improve efficiency, and provide better taxpayer services. The use of technology can increase transparency, reduce costs, and eliminate the need for face-to-face interaction, potentially reducing the chances of corruption.
However, the use of technology in Income Tax proceedings may lead to technical glitches, which can delay the processing of cases and may require additional time to resolve. The limited interaction between taxpayers and tax authorities may reduce the scope for taxpayers to present their case and may increase the chances of errors in the assessment. Additionally, the digital processing of Income Tax proceedings can raise concerns about the security of personal data and sensitive financial information, which may be vulnerable to cyber threats. Furthermore, the lack of personal touch in faceless e-proceedings may not be suitable for cases that require a more nuanced understanding.
In conclusion, while faceless schemes and e-proceedings have benefits such as increased efficiency and reduced corruption, they also come with limitations such as technical glitches, limited interaction, data security concerns, and a lack of personal touch. It is essential to weigh these pros and cons before adopting these schemes and to ensure that they are implemented in a manner that ensures transparency, efficiency, and fairness in tax assessments.
Pros:
Accessibility: Faceless e-proceedings can make the process of tax assessment more accessible to taxpayers who may not be able to physically attend court proceedings due to geographical or other constraints.Time-saving: The use of technology can help save time and resources by eliminating the need for physical meetings, which can be time-consuming and may require travel.
Reduced Bias: The digital processing of Income Tax proceedings through faceless e-proceedings can help reduce the possibility of biases by eliminating the need for face-to-face interaction between taxpayers and tax officials.Better Quality of Justice: The use of technology can help increase the quality of justice by making the process more efficient, transparent, and free from any human error or manipulation.
Environment-friendly: The digital processing of Income Tax proceedings can help reduce paper usage and make the process more environmentally friendly.
Cons:Technical Glitches: The use of technology in Income Tax proceedings may lead to technical glitches, such as network failure, which can delay the processing of cases and may require additional time to resolve.
Limited interaction: Faceless e-proceedings can limit the interaction between taxpayers and tax authorities, which may reduce the scope for taxpayers to present their case and may increase the chances of errors in the assessment.Data security concerns: The digital processing of Income Tax proceedings can also raise concerns about the security of personal data and sensitive financial information, which may be vulnerable to cyber threats.
Lack of personal touch: The use of faceless e-proceedings may also lead to a lack of personal touch, which can make the process appear more mechanical and may not be suitable for cases that require a more nuanced understanding. Infrastructure and Connectivity: Faceless e-proceedings require a robust digital infrastructure and connectivity, which may not be available in remote areas or for individuals with limited resources.
What are the important amendments made in the Finance Bill 2023 passed by the Lok Sabha?
The Lok Sabha has passed the Finance Bill 2023 with over 60 amendments made to the bill, which was initially introduced in the Lok Sabha on February 01, 2023. Some of the important amendments made to the Finance Bill 2023 are:
of GST Appellate Tribunals across the country
in TDS on royalties and technical services fee to Non-Resident
revised Limit of Presumptive Taxation for Financial Year 2023-24
TDS Amendments
TCS Amendments
These amendments include changes related to capital gains, TDS/TCS, Securities Transaction Tax (STT), GST Appellate Tribunal, etc.
D. Capital Gains Amendments:
Introduction of a new section 194Q: A new section is introduced to deduct TDS at the rate of 0.1% of the purchase consideration on any sale of goods above INR 50 lakhs if the seller’s total turnover or gross receipts in the previous financial year exceeds INR 10 crores.
Clarification on applicability of Section 112A: The provision of holding period for computing longterm capital gains tax on equity shares and equity-oriented mutual funds is amended. Now, shares and mutual funds held for more than one year will be considered long-term capital assets for computation of LTCG tax at 10% (without indexation).
E. Other Amendments:
Introduction of ‘Vivad Se Vishwas 2.0’ scheme: The scheme aims to resolve pending direct tax disputes by providing a waiver of interest and penalty on disputed tax payments. Under the scheme, taxpayers can settle disputes by paying the disputed amount without interest and penalty by 31st December 2023.
Introduction of a new section 206AB: The new section provides for higher TDS/TCS rates for nonfilers of income tax return. The section provides for TDS/TCS at twice the prescribed rate or 5%, whichever is higher, for those who have not filed their returns for the last two financial years with tax liability exceeding INR 50,000.
Overall, these amendments in the Finance Bill 2023 and the Finance Act 2023 will have significant implications on taxpayers and businesses in India. It is important for individuals and companies to understand these changes and take necessary actions to comply with the new regulations.