Tax Communication between the Assessing Officer and the Taxpayer Goes Online

To err is human, but the Central Board of Direct Taxes (CBDT) has taken a much-needed step to reduce the human interface in tax communication between the assessing officer and taxpayer by moving the whole process online. Taxpayers can now take advantage of a new link called “e-proceeding,” which will appear on the e-filing website of the Income Tax Department while filing income tax returns. 

What is E-proceeding?

E-Proceeding will be applicable to all the proceedings under the Income Tax Act of 1961. Furthermore, CBDT also asserts that this new procedure of communication will be applicable to all the proceedings under the Income Tax Act of 1961. This new form of e-communication is, however, optional as taxpayers can choose to use this new form of e-communication or submit documents manually by visiting the IT department office. Soon after the taxpayer registers on the web portal, an SMS and email will be sent to their registered mobile number and email ID. 

Services Available under E-proceeding

In the declaration, CBDT clarifies that the e-proceeding will be available for all types of notices, questionnaires, or letters issued under various sections of the IT Act.

“The functionality to conduct e-proceeding will be available for all types of notice, questionnaire, and letter issued under various sections of the IT Act. For example, hearing notice for assessment proceedings under sections 143(3), 147, 263 or 264 etc, proceedings under section 154 and hearing under various sections for the penalty.”

“Proceedings in first appeal for hearing notice, proceedings for granting or rejecting registration applications under section 12AA, 80G under exemptions, seeking clarification for resolving e-nivaran grievances etc. can also be conducted using the e-proceeding functionality using electronic communication of notice or any document by any Income Tax authority and electronic submission of response by assessee,” the notification clarifies.

Modes of Communication of E-proceedings

The communication to the taxpayer will be sent out from the official email ID of the Assessing Officer (AO). The email will bear the domain ‘@incometax.gov.in.’  Once the notice, questionnaire, or letter is delivered to the assessee under the e-proceeding tab in the department's e-filing website, he or she can submit his or her response along with the documents/attachments on the e-filing website—incometaxindiaefiling.gov.in.

CBDT has decided to auto-close the e-submission time seven days prior to the Time Barring (TB) date, if any. In case there is no TB date and the assessee violates it, the Income Tax authority can close the e-submission whenever the compliance time is over or when the final order is under preparation to avoid last-minute submissions. The Income Tax authority retains the option to re-enable the e-submission date if required.

Talking about the new system’s use in the financial year 2017-18, a senior IT officer added, “The CBDT had run a pilot project in this regard sometime back, which has paved the way for this absolutely new regime where the taxman and the taxpayer do not have an interface. A majority of tax dealings with the taxpayer in the new financial year (2017-18) will be done through the new system.”

The taxpayer still has the option to use the new e-proceeding system or go about it manually. In line with the new paperless system, the notification also explains the e-proceeding system’s procedure. Upon closure or completion of any proceeding under this procedure, the final order, letter, or document will be delivered to the assessee under the e-proceeding tab on the department's e-filing website.

If need be, the same may also be delivered by post. In case the assessee opts for manual mode in the middle of e-proceedings on the e-filing website, further proceedings shall be conducted in manual mode.”With the new system in place, the assessee can now review the entire history of notices, questionnaires, letters, and his responses on the e-filing website, making the system transparent.