Faceless Assessment Is Being Implemented In A Hurried Manner: Tax Officers
Income tax officers have again approached the CBDT over not being taken into confidence on the issue of faceless assessments.
Income tax officers have again approached the Central Board of Direct Taxes expressing anguish over not being taken into confidence on the issue of faceless assessments.
This comes after a joint council of action, representing nearly 97% of the tax department’s employees, approached the government raising concerns about possible displacement of its members due to the implementation of the scheme. The representation has been made by the Income Tax Employees Federation and the Income Tax Gazetted Officers' Association.
The letter relates to the slew of tax reforms announced by Prime Minister Narendra Modi last week, which includes faceless assessments, appeals as well as a tax charter.
The new system of faceless assessments and appeals shifts cases from territorial jurisdiction to dynamic allocation to an officer anywhere in the country. The tax officers claim to support the scheme but have expressed concerns about dislocation of officers and their families. They also claim their views have not been taken into consideration by the CBDT.
The latest representation by the joint council states that:
- Tax officers still have certain apprehensions despite the department’s assurances on staff strength and work-related aspects.
- Senior authorities in the department are ignoring suggestions made by the tax officers association. This has led to disgruntlement among the tax officers who fear “massive dislocation” of the workforce due to hurried implementation of the reforms.
- And lastly, the diversion of posts to the newly created charges has caused confusion among the officers at the local level.
The joint council has suggested certain remedial measures to the tax department. It has urged that senior authorities hold discussions with the joint councils regarding diversion of posts. Further, relocation of charges from district or internal areas must be avoided, the letter says, as it won’t be possible to create new office space overnight at the relocated places.
Pointing out logistical issues that the department’s employees may face, the letter suggests that manpower diversion must be kept to a bare minimum as dislocated employees may face challenges due to the outbreak of Covid-19 pandemic. Officers must be relieved of additional charge by filling up existing vacancies at the local level on an urgent basis, the communication says.
The letter further states that the morale of tax officers is “very down” due to unprecedented delays in career progression since 2015 and that any further delay could likely be detrimental to the successful implementation of the faceless assessment scheme.
Grievances Can Hamper Tax Reforms, Experts Say
Experts pointed out that if not addressed, the grievances raised by tax officers may hamper the successful implementation of the reforms in the long run.
It is imperative that tax officers are taken into confidence, Amit Maheshwari, partner at the tax advisory firm AKM Global told BloombergQuint. There seems to be a genuine disconnect between the tax officers and CBDT on certain aspects of the scheme and its implementation, Maheshwari pointed out.
‘One hopes that this does not become yet another instance where the intention at the policy level is good but the reality on the ground is very different, he said.
Rakesh Nangia, chairman at Nangia Anderson India agreed. The introduction of faceless assessments would require a lot of change in mindset and efforts to be put in the tax authorities since they have to complete assessments based on plain reading of submissions without any personal assistance, he said.
The success of new scheme will really depend on whether the government is able to instill confidence and conviction in tax authorities for implementation of new system and a sense of security in the officers that new system is not detrimental to their career growth.Rakesh Nangia, Chairman, Nangia Anderson India
Mukesh Butani, partner at BMR Legal pointed out that the operational challenges raised before the CBDT may require Standard Operating Procedures and appropriate measures to be devised by CBDT.
At the same time, the not so apparent cultural challenges on transition to the new faceless mode of assessment also need to be acknowledged and sufficiently addressed through inclusive stakeholder participation in order to effect a seamless transition to the new faceless assessment scheme, he added.