CBDT releases the Faceless Penalty Scheme, 2021



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The Central Board of Direct Taxes (CBDT) has launched the Faceless Penalty Scheme, 2021. This new scheme allows for penalty proceedings to be conducted electronically, aiming to streamline the process. The scheme outlines the definitions, scope, and procedures for these faceless penalty assessments.

The Central Board of Direct Taxes has released the Faceless Penalty Scheme, 2021.The penalty under this Scheme shall be imposed in respect of such territorial area, or persons or class of persons, or income or class of income or cases or class of cases, or penalties or class of penalties as may be specified by the Board. Read the rules and regulations of the penalty below: MINISTRY OF FINANCE (Department of Revenue) (CENTRAL BOARD OF DIRECT TAXES) NOTIFICATION New Delhi, the 12th January,
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FAQ :

The Faceless Penalty Scheme, 2021 is a new initiative by the Central Board of Direct Taxes (CBDT) that enables penalty proceedings under the Income-tax Act, 1961, to be conducted electronically without the physical presence of the taxpayer.

The scheme came into force on the date of its publication in the Official Gazette, which was 12th January 2021.

Penalties under this scheme can be imposed in respect of such territorial areas, persons, income, cases, or penalties as may be specified by the Board.

Cases are assigned to penalty units through an automated allocation system, which uses technological tools like artificial intelligence and machine learning for randomised allocation.

The National Faceless Penalty Centre facilitates the centralised conduct of faceless penalty proceedings and assigns cases to specific penalty units.

Taxpayers will be notified through their registered account on the designated portal, registered email address, or registered mobile number via SMS or the Income-tax Department's mobile app.




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Finance news reporter covering taxation, GST, income tax, business compliance, and economy updates. I simplify complex financial topics into easy-to-understand articles for professionals, taxpayers, and business owners on leading finance and tax platforms.

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