Why is it in the news ?
A national e-assessment centre (NeAC) has been set up in the national capital as part of the government’s ambitious plan to launch faceless and nameless assessment for income tax payers.
What is the objective of NeAC ?
- To impart greater efficiency, transparency and accountability in the assessment process. With NeAC, there would be no physical interface between the taxpayers and the tax officers.
- The setting up of NeAC of the Income Tax Department is a step towards the larger objectives of better taxpayer service, reduction of taxpayer grievances in line with the vision of ‘Digital India’ and promotion of Ease of Doing Business.
National e-Assessment Centre (NeAC)
- NeAC will be an independent office that will look after the work of the e-Assessment scheme which was recently notified for faceless e-assessment for income tax payers.
- There would be a NeAC in Delhi to be headed by the 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.
- 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 better quality of assessments.
What are the benefits of Faceless 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 quality of assessment and monitoring
- Functional specialisation as only one agency dealing with faceless assessment
- Expeditious disposal of cases
- Standardisation and quality management
- Impart greater efficiency, transparency and accountability.