The Central Board for Direct taxes (CBDT) vide Notification No. 3 of 2021 dated January 12, 2021, has notified the “Faceless Penalty Scheme” for conducting penalty proceedings under the Income-tax Act, 1961 (Act) in a faceless manner. The said scheme is alignment with the Faceless Assessment Scheme and the Faceless Appeal Scheme.
The said Scheme lays down the procedure for conducting penalty proceedings in a virtual manner without any physical interaction between the tax payer and the Income-tax Department.
The said Scheme leverages on the developments in technology, and aims to live up to the Honourable Prime Minister’s vision of improving transparency, efficiency, and accountability in tax administration.
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