A Study on the Shift from Physical to Faceless Tax Assessments in India

Through the introduction of the Faceless Assessment, a major reform has emerged in the Indian income tax system.This reform has replaced the traditional assessment system.It is a technology-driven, electronic system designed to overcome the shortcomings of the physical assessment system.The main objective of this scheme is to bring greater transparency to the government's assessment process, reduce human interaction, improve the effectiveness and efficiency of tax administration, enhance the department's image, and increase public trust in the income tax department.Additionally, it aimed to completely eliminate cases of corruption and bribery.This paper studies the entire transition process from the traditional physical assessment system to the Faceless Assessment scheme.It covers the concepts, objectives, working mechanism, benefits, and challenges of the Faceless Assessment scheme.It also compares the physical assessment system and the Faceless Assessment system and discusses how both taxpayers and tax authorities perceive this shift.