Central Board of Direct Taxes Current Affairs - 2019

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CBDT launches Documentation Identification Number

The Central Board of Direct Taxes (CBDT) has launched a computer-generated Document Identification Number (DIN) to ensure greater transparency and accountability in tax administration. Thus from now onwards, every CBDT communication will have to have a documentation identification number. The DIN system has been created as per the direction of Nirmala Sitharaman, Union Minister of Finance.

About Documentation Identification Number (DIN)

The path-breaking DIN system became operative from 1 October 2019 and will apply to all kind of communications from Income Tax (IT) Department, whether it is related to investigation, assessment, rectification, appeals and penalty among other things. On first day of systems’ implementation, nearly 17,500 communications have been generated with DIN.

Mandate: Any communication from IT Department without a computer-generated DIN, be it a notice, letter, order and summon or any other correspondence, would be treated as invalid and shall be deemed as if it has never been issued. Also, all such communications with DIN would be verifiable on e-filing portal and no communication would be issued manually without DIN. The only exceptional circumstances is in the case if the communication is issued manually and it would have to be uploaded and regularised on the system portal within 15 days of its issuance.

Benefits: DIS system would ensure greater accountability and transparency in tax administration. This development would also help taxpayers detect fake notices and letters as the notice would be verifiable on e-filing portal of department.

CBDT to set up National e-Assessment centre in New Delhi

National E-Assessment Centre (NeAC) will be setup in New Delhi as part of the Centre government’s ambitious plan to launch faceless and nameless assessment for income tax payers from October 2019. The order for the creation of NeAC was issued by Central Board of Direct Taxes (CBDT), which frames policy for Income-tax department.

About National E-Assessment Centre (NeAC)

It will be an independent office that will look after the work of e-assessment scheme, which is the recently notified scheme for faceless and nameless assessment for income taxpayers.

The NeAC will exclusively focus on e-assessment and will have 16 officials. It will headed by a Principal Chief Commissioner of Income-tax (PCCIT) as its chief. CBDT has appointed K M Prasad, a 1984-batch Indian Revenue Service (IRS) officer as chief or PCCIT of NeAC and Ashish Abrol, a 1993-batch IRS officer as Commissioner or second-in-command of new unit.

NeAC will also serve notices to assesses specifying the issues for selection of their case for assessment and once a response is received from them within a period of 15 days, the centre will allocate case to an assessing officer using an automated system.

About e-assessment Scheme

Centre government had recently notified e-assessment scheme, to facilitate faceless assessment of income-tax returns via completely electronic communication between tax officials and taxpayers. The scheme will be rolled out from ‘Vijayadashami’ on 8 October 2019.

Under the scheme, a person shall not be required to appear either personally or via authorised representative in connection with any proceedings before IT authority at the NeAC or Regional e-assessment Centre (ReAC) or any other unit set up for this purpose under scheme.

In cases where any modification is required, the taxpayer will be provided an opportunity for a personal hearing and such hearing shall be conducted exclusively by video conferencing.