E-assessments – A Big relief for salaried taxpayers

  • Blog|Income Tax|
  • 2 Min Read
  • By Taxmann
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  • Last Updated on 5 January, 2021

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10 things to know about e-Assessments:

 

1. Every taxpayer is required to furnish details of his income to Income-tax Dept. by furnishing Income-tax Return (ITR). The Income-tax dept. examines the correctness of ITR filed by taxpayer and this process of examining ITR is called ‘Assessment’ under the Income-tax Act. During the assessment, taxpayer is given an opportunity to substantiate his claim of income, loss, expenses, exemptions etc. as declared in the ITR with the help of convincing evidence by visiting the Income-tax office in person.

 
2. Taxpayers with only salary income are not generally selected for Income-tax assessment if the details furnished by them in the ITR are in sync with the Form 16. The Income-tax Officer usually does not call upon such person to appear in-person to explain the details furnished in ITR.
 
3. However, if a person has any other income in addition to salary income, such as income from house property, capital gains, other sources etc., and his ITR is selected for scrutiny, he may be called upon to appear in person to substantiate the claim in ITR. The tax officer may demand production of the relevant evidence to support the claim made in respect of salary income, i.e., proof of rent paid, rent agreement, etc.
 
4. Assessment of ITRs is an important process to ensure timely and accurately compliance with the taxation laws. However, it has caused various inconvenience to the salaried taxpayers due to prolonged enquiries. Visiting the Income-tax office is a hectic process, especially for salaried taxpayers and to produce the information asked by the Dept. 
 
 
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5. As part of e-governance initiative towards assessment proceedings electronically, Income-tax Dept. has launched ‘E-Proceeding’ facility. Under this initiative, the Central Board of Direct Taxes (CBDT) has made it mandatory for the tax officers to take recourse to electronic communications for all limited and complete scrutiny assessments. In June, 2017, CBDT had issued the format for issuing a notice to the taxpayers for conducting the scrutiny assessments. Now, CBDT has issued an instruction for conducting the scrutiny assessments electronically. As per the instruction, except search related assessments, all scrutiny assessments shall be conducted only through the ‘E-Proceeding’ functionality available at e-filing website of the Income-tax Dept.
 
6. Through this instruction, the Board has laid down the procedures to be followed by the tax officers to conduct the scrutiny assessment’s electronically. This instruction provides that all communications with the taxpayers shall be signed digitally by the tax officer’s and shall be delivered to a taxpayer’s in their e-filling accounts.
 
7. On receipt of Dept. communication, taxpayer would submit his response along with the attachments by uploading the same on e-filing portal. All the submissions and replies should be made by the taxpayer during office hours on the date stipulated for compliance.
 
8. The response submitted by the taxpayers can be viewed by the concerned tax officer electronically in Income-tax Business Application (ITBA) Module.
 
9. Not all proceedings shall be carried out electronically. A few proceedings can also take place manually, i.e., examining the books of account, examination of witness, etc. 
 
10. This taxpayer friendly measure would substantially reduce the compliance burden for the taxpayers as it would enable them to submit response to the Departmental queries electronically as per their convenience.
 
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