Following the reform in indirect tax in India, “One Tax One Nation”, and Government is now proceeding towards a new change in direct tax which will enable a jurisdiction free income tax assessment system and e-scrutiny of tax payers. For this, a 13 member task force, has been formed by the Central Board of Direct Taxes (CBDT) to prepare the roadmap for this venture.
The special task force, headed by a principal chief commissioner of income tax rank officer, has been asked to submit its report on the new tax assessment process, which is aimed at reducing corruption and harassment of taxpayers, to the CBDT by July 31. The other members of the team are the IT Officials from various region of the Department.
“While e-assessment is being implemented in phases, in respect of other recommendations, a task force is hereby constituted by the board to examine the feasibility of these recommendations and also to suggest how best to implement the recommendations found feasible, in medium and long terms,” the CBDT order said.
Under the proposed jurisdiction-free assessment, aimed at reducing instances of corruption and harassment of the taxpayers, it is said that a taxpayer could be assessed by an assessing officer (AO) of the department based in any part of the country.
Similarly, the task force will also suggest ways make easy the system of scrutiny where a taxpayer is required to provide a number of documents and testimonials to the AO after his or her case is picked up for a threadbare examination.
The department has said that it only picks less than one per cent of total I-T Returns (ITRs) filed for examination under the long-drawn scrutiny process but this has still been an issue of grievance for many.
The CBDT order said while giving its recommendations, the task force would also suggest possible changes in law, adequacy of infrastructure additional funds for implementing the proposed changes, modification in business processes as well as training and other capacity building measures which may be required to be taken by it.
Further, the task force should also prepare a blueprint for implementation of the suggested recommendations.
The CBDT is also set to soon implement the system of conducting limited scrutiny cases via the ‘e-proceeding’ system that had been notified recently under the ambitious Internet-based paperless communication system of tax dealings.
The new e-proceeding procedure, is a part of e-governance initiative to facilitate a simple way of communication between the department and the taxpayer, through electronic means, without the necessity of the taxpayer to visit the I-T office, it said.
