Faceless Assessment Scheme

Faceless Assessment

Section 144B was introduced by the Finance Act, 2020.

According to this section:

• The Central Government shall notify a faceless assessment scheme.

• Assessment shall be carried out through electronic mode.

• Multiple specialized units shall be involved.

• No personal appearance is required unless permitted through video conferencing.

• All communications must be through the designated portal.

  
  

This section ensures that assessments are conducted in a standardized and transparent way. 

Submission Best Practices

• Respond to All Queries: Address each and every point raised in the notice or questionnaire, even if some points seem irrelevant. An incomplete response can weaken your case or lead to a best judgement assessment.

  
  

• Be Clear and Concise: Draft all explanations in simple, clear language. Avoid ambiguity or misinterpretation, as there is no opportunity for immediate verbal clarification.

  
  

• Structure Your Reply Logically: Try to answer the queries in the same sequence or order as presented in the notice. This helps the assessing officer easily follow your submission.

  
  

• Provide Comprehensive Documentation:

  • Upload all relevant evidence: Ensure all supporting documents are attached to your submission.

  • Serial Number Attachments: Number your attachments serially and reference them appropriately in your written submission.

  • Adhere to Technical Specs: The size of each attachment should not exceed 5MB, with all attachments together not exceeding 50MB. All files should be in PDF or ZIP (containing PDF only) formats.

  • Use Sample Invoices: For large volumes of expenses, consider submitting samples of major invoices with a note that further invoices can be provided if required.

    
    

• Ensure Consistency of Data: Reconcile figures in your submissions and documents (e.g., ledgers, bank statements) with those in your Income Tax Return to avoid discrepancies that might trigger further inquiries.

  
  

• Seek an Independent Review: Before finalizing, have someone not involved in the preparation review the reply to ensure it is easily understandable and complete from an outside perspective. 

  
  

Replies Best Practices

• Be Timely: Adhere strictly to all deadlines mentioned in the notices. The system is automated, and non-compliance can lead to penalties or ex-parte orders.

  
  

• Use the Official Portal: All communication, including submissions and requests for adjournment, must be made electronically through your account on the official Income Tax e-filing portal. Do not send physical copies to any office.

  
  

• Seek Adjournments Judiciously: While the option to seek an adjournment is available on the portal, use it only when necessary and provide a valid reason.

  
  

• Utilize Video Conferencing (VC): If a personal hearing is required, you can request one via video conferencing. This opportunity is generally provided after filing a response to a show-cause notice and a draft assessment order. Ensure you have the necessary facilities and that your contact details (email/phone) on the portal are updated.

  
  

• Respond to Show-Cause Notices (SCN): If you receive an SCN proposing modifications to your income, respond in detail. Reiterate earlier submissions, address any missed points, provide documentary evidence (even if submitted before), and clarify any misunderstandings to prevent additions to your income.

  
  

• Monitor the Portal Regularly: Check your e-filing account and registered email address frequently for new notices and updates. 

  
  

Manage Time Effectively

Good time management ensures well-thought-out answers. A smart allocation is:

• 20% to read and dissect the question

• 70% to draft the response

•  10% to review and refine

Conclusion

Faceless assessments test more than just knowledge—they measure clarity, judgment, professionalism, and communication skills. By following structured best practices and preparing thoughtful, concise answers, candidates can make a strong impression even without face-to-face interaction.