Problems faced by the Indian taxpayers due to the new Income Tax reforms

There is an observation among the taxpayers that in the faceless assessment, multiple details are being asked at the last minute. Taxpayers are finding it difficult to run from pillar to post to meet their Authorised Representative to submit the reply. Assessing officers are asking for details in a fixed format in several cases, and some of the columns and points do not relate to this taxpayer.

Uploading bulk data and statements is becoming a difficult task. In faceless assessment, Vouchers cannot be verified by the AO. It may lead to infructuous additions in relation to the disallowance of expenditure. Few submissions can be explained orally only, everything can’t be explained through writing.  It is the main difficulty in faceless assessment. There are many other issues faced by Indian Taxpayers.

Indian Taxpayers issues with reopened assessment cases:

Coming to reopened assessment cases, when reasons are not provided, assessees cannot understand the purpose of 142(1). 142(1) should be given only with reasons and a suitable amendment to be made. It is the opinion that runs among certain groups of assessees and tax practitioners.

Whether completing the assessment without hearing the assessee personally is an important aspect of legal review. The assessees are deprived of their right to express themselves. Tracking the legal heirs of the deceased is a big problem for serving the notices in the absence of any valid digital footprints.

A favorable resolution, if provided by the concerned, can enhance the efficacy of the faceless assessment scheme.

Also Read: New tax reforms in Indian Income tax introduced from August 2020