Updated on 9 October, 2019
Revenue Secretary launched the National e-Assessment Centre in the Income Tax department and also inaugurated the faceless assessment system.
About National e-Assessment Centre (NeAC) :
- The e-Assessment Scheme introduces the concept of team-based assessment with dynamic jurisdiction which would bring about transparency, efficiency and standardisation of procedures by eliminating human interface between the taxpayer and the Income Tax department.
- The Central Board of Direct Taxes (CBDT) also launched a system of document identification. Under this system, all notices and communications sent by the I-T department would come with a computer-generated Documentation Identification Number (DIN). Notices without this DIN will be considered non-existent under the law.
Benefits of Faceless Assessment:
- NeAC will be an independent office that will look after the work of e-Assessment scheme which is recently notified for faceless e-assessment for income taxpayers.
- There would be a NeAC in Delhi to be headed by Principal Chief Commissioner of Income Tax (Pr.CCIT). There are 8 Regional e-Assessment Centres (ReAC) set up at Delhi, Mumbai, Chennai, Kolkata Ahmedabad, Pune, Bengaluru and Hyderabad which would comprise Assessment unit, Review unit, Technical unit and Verification units.
- Each ReAC will be headed by Chief Commissioner of Income Tax (CCIT). Cases for the specified work shall be assigned by the NeAC to different units by way of automated allocation systems.
- In view of the dynamic and all India jurisdiction of all officers of NeAC and ReAC, this kind of connective and collaborative effort of officers is likely to lead to a better quality of assessments.
About Faceless e-Assessment:
- NeAC eliminates human interface between Assessing Officer and Assessee.
- New System optimises the utilisation of resources through economies of scale.
- NeAC introduces team-based assessment with dynamic jurisdiction.
- Ease of compliance for taxpayers.
- Brings transparency and efficiency, thus improves the quality of assessment and monitoring.
- Functional specialisation as only one agency dealing with faceless assessment
- Expeditious disposal of cases.
- Standardisation and quality management.
Document Identification Number(DIN)
- Centre Government had recently notified the e-Assessment scheme to facilitate the faceless assessment of income tax returns through completely electronic communication between tax officials and taxpayers.
- Under the new system of faceless e-Assessment, taxpayers will receive notices on their registered emails as well as on registered accounts on the web portal www.incometaxindiaefiling.gov.in with real-time alert by way of SMS on their registered mobile number, specifying the issues for which their cases have been selected for scrutiny.
- The replies to the notices can be prepared at ease by the taxpayers at their own residence or office and be sent by email to the National e-Assessment Centre by uploading the same on the designated web portal.
- This new initiative of faceless assessment is expected to increase ease of compliance for taxpayers as the cost and anxiety of taxpayers are likely to be greatly reduced. No human interface with the Department would be a game-changer. This is another initiative by CBDT in the field of ease of compliance for our taxpayers.
- DIN is a unique Director identification number allotted by the Central Government to any person intending to be a Director or an existing director of a company.
Where is DIN used?
- It is an 8-digit unique identification number which has lifetime validity. Through DIN, details of the directors are maintained in a database.
- DIN is specific to a person, which means even if he is a director in 2 or more companies, he has to obtain only 1 DIN. And if he leaves a company and joins some other, the same DIN would work in the other company as well.
How to apply for DIN and relevant forms?
- Whenever a return, an application or any information related to a company will be submitted under any law, the director signing such return, application or information will mention his DIN underneath his signature.
- SPICe Form: Application for allotment of DINs to the proposed first Directors in respect of New companies shall be made in SPICe form only.
Also read: Corporate Tax Rate Cut Goods And Service Tax: 2 Years Journey Source
- DIR-3 Form: Any person intending to become a director in an already existing company shall have to make an application in eForm DIR-3 for allotment of DIN.