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A Complete Guide to Jurisdiction-Free E-Assessments for Taxpayers

Updated on: 07 Jan, 2025 11:03 AM

The process of income tax assessment has undergone a significant transformation with the introduction of jurisdiction-free e-assessments. Before this, taxpayers faced numerous challenges, including physical visits to tax offices, delays in processing, and the risk of biases due to territorial jurisdiction. The system often led to inefficiencies, lack of transparency, and unnecessary stress for taxpayers.

With the implementation of e-assessment, these hurdles have been largely eliminated. The jurisdiction-free model ensures that assessments are assigned randomly to tax officers anywhere in the country, promoting fairness and reducing personal interactions. This digital shift not only enhances transparency but also streamlines the process, making it faster, more secure, and more convenient for taxpayers.

This guide provides a comprehensive overview of jurisdiction-free e-assessments, explaining how the system works, its benefits, and the steps involved.

Contents

What is Tax Assessment?

Taxpayers are required to accurately report their income from all sources by filing the prescribed online income tax return by the due date. The Income Tax Department then examines these returns for accuracy, a process known as "assessment." This includes reassessments and best judgment assessments under Section 144 of the Income Tax Act, 1961, although the Act itself does not define "assessment." Assessing officers are assigned jurisdiction by Commissioners of Income Tax based on specific areas, individuals, classes of individuals, or types of income under Section 124(1).

What is Jurisdiction Free E-tax Assessment?

It means you can give the online response to the scrutiny notice at your convenience i.e. 365*24*7. It will enable you to save your time, energy, and cost. Now, no more physical interactions with the assessing officer (AO); rather, an internet-based paperless communication system is initiated. You can easily submit the response with the proper attachments through the E-Proceeding facility from your account on the ‘e-filing’ website of the Income Tax Department. After the submission of the response, if any further information is required, then a request will be sent by the IT Official online, and you can revert to the same. In simple words, along with the ITRs, the scrutiny system has also been digitalized.

Additionally, under this new scheme, the software has been integrated in such a manner that your profile will be allocated to any officer across the country. This means neither the taxpayer nor the assessing officer would know each other’s identity. However, currently, taxpayers are assessed only at the place where they are based.

Jurisdiction: No Longer a Matter of Choice

Jurisdiction is not a matter of choice for either the assessing officer or the taxpayer. Taxpayers cannot choose their assessing officer.

What is the Objective behind this New System?

The main aim of this jurisdiction-free assessment system is to reduce corruption. That means now one would not be able to bribe the IT officials, and this move will lead to a corruption-free department. Moreover, the culture of minimum interaction between the taxpayer and the tax officer will reduce the harassment faced by the assessees to a great extent.

How is e-assessment beneficial for the taxpayers?

E-assessment provides taxpayers with a more convenient, transparent, efficient, and cost-effective way to manage their taxes. By enabling online filing and communication, e-assessment eliminates the need for in-person visits to tax offices, increases transparency through clear documentation, reduces processing times for quicker resolutions, minimizes opportunities for corruption, and ultimately saves both time and money for taxpayers and tax authorities.

Need tax help? Consult with our Online CAs Now!

Frequently Asked Questions

Q- Can I raise jurisdictional issues after the assessment order has been made?

No, jurisdictional issues must be raised before the Assessing Officer and within the prescribed time. They cannot be raised for the first time in an appeal against the assessment after the assessment has been made.

Q- How is jurisdiction assigned to Assessing Officers?

Jurisdiction may be assigned by Commissioners of Income Tax to Assessing Officers with reference to specified areas, persons or class of persons, or income or classes of incomes, as per Section 124(1).

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CA Abhishek Soni
CA Abhishek Soni

Abhishek Soni is a Chartered Accountant by profession & entrepreneur by passion. He is the co-founder & CEO of Tax2Win.in. Tax2win is amongst the top 25 emerging startups of Asia and authorized ERI by the Income Tax Department. In the past, he worked in EY and comes with wide industry experience from telecom, retail to manufacturing to entertainment where he has handled various national and international assignments.