Faceless collection of information
(1) The Central Government may make a scheme, by notification in the Official Gazette, for the purposes of calling for information under section 133, collecting certain information under section 133B, or calling for information by prescribed income-tax authority under section 133C, or exercise of power to inspect register of companies under section 134, or exercise of power of Assessing Officer under section 135 so as to impart greater efficiency, transparency and accountability by—
(a) eliminating the interface between the income-tax authority and the assessee or any other person to the extent technologically feasible;
(b) optimising utilisation of the resources through economies of scale and functional specialisation;
(c) introducing a team-based exercise of powers, including to call for, or collect, or process, or utilise, the information, with dynamic jurisdiction.
(2) The Central Government may, for the purpose of giving effect to the scheme made under sub-section (1), by notification in the Official Gazette, direct that any of the provisions of this Act shall not apply or shall apply with such exceptions, modifications and adaptations as may be specified in the notification:
Provided that no direction shall be issued after the 31st day of March, 2022:
47[Provided further that the Central Government may amend any direction, issued under this sub-section on or before the 31st day of March, 2022, by notification in the Official Gazette.]
(3) Every notification issued under sub-section (1) and sub-section (2) shall, as soon as may be after the notification is issued, be laid before each House of Parliament.
Lets understand the provision of above section 135A of Income Tax Act 1961: Faceless collection of information
Creation of a New Scheme: The Central Government can introduce a new system (announced officially) to streamline the process of gathering and managing tax-related information (Sections 133, 133B, 133C, 134, and 135). This is intended to make tax administration more efficient, transparent, and accountable. Key aspects of this scheme include:
a. Reducing Direct Interaction: The scheme aims to minimize direct contact between taxpayers and tax authorities as much as possible using technology.
b. Optimizing Resources: It focuses on better resource management through large-scale operations and specialized functions.
c. Team-Based Approach: The powers related to collecting, processing, and using tax information will be exercised by a team with flexible jurisdiction, meaning the authority to handle these matters can shift as needed.
Modifying Existing Laws: To implement this scheme, the Central Government may alter certain parts of the Income Tax Act. This could mean that some sections don’t apply or are modified. However, no changes can be made after March 31, 2022. Any changes made before this date can be revised if needed.
Parliamentary Review: Every new announcement or change under this scheme must be presented before both houses of Parliament as soon as possible after it’s made.
Example in Indian Context:
Imagine a scenario where a business owner in India needs to provide financial information to the income tax authorities. Under the new scheme:
- Instead of visiting the tax office, the business owner can submit all the necessary documents online, reducing direct interaction with the tax authorities (point a).
- The tax authority uses specialized software and teams to process this information efficiently, representing a better use of resources and expertise (point b).
- A designated team, not restricted by traditional geographic boundaries, can handle the assessment, ensuring a more dynamic and flexible approach (point c).
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