What is the faceless assessment scheme and how does it change how I deal with the tax department

Question

I heard that income tax assessments are now done faceless and I do not understand what that means for how I will be contacted or how I should respond. I have been reading conflicting things online and I would like to understand what Indian law actually says about this, which Act and Section applies, what the realistic timelines and costs are, and what I should be doing right now to protect my position. If the matter can be resolved without litigation I would prefer that route, but I want to know what my rights are before I agree to anything or sign any document.

MyVakeel Legal Desk · Accepted Answer

What is the faceless assessment scheme and how does it change how I deal with the tax department is governed in India primarily by Income-tax Act, 1961, Section 144B, Income-tax Act, 1961, Section 143(3) and Income-tax Act, 2025. The short answer is set out below, followed by the practical steps most people in this situation need to take. Read it alongside the specific provisions named, because the exact relief available to you turns on the facts you can prove on paper.

Section 144B of the Income-tax Act, 1961 lays down the Faceless Assessment Scheme, under which assessment proceedings, including scrutiny under Section 143(3) and best judgment assessment under Section 144, are conducted through automated allocation of cases to assessment units without the taxpayer knowing or interacting with the identity of the specific officer handling the case, aimed at reducing physical interface and discretion-based harassment.

Under this scheme, all notices, show-cause letters and draft assessment orders are communicated electronically through the income tax portal or registered email, and you must respond within the portal itself using the specified functionality; physical visits to the tax office are generally not required and, in fact, are discouraged except in specified exceptional circumstances requiring personal hearing through video conferencing.

If a draft assessment order proposes an addition, you are typically given an opportunity to file objections or request a personal hearing through video conferencing before the final order is passed, and it is important to actively use this opportunity since a non-response can lead to the draft becoming the final order.

Because everything happens electronically, keeping your registered email and mobile number updated on the income tax portal, checking the portal regularly for notices, and maintaining PDF copies of all documents submitted are practical necessities under the faceless system, since missed deadlines cannot easily be explained away by claiming you were unaware of a notice.

What to do next: 1) Keep your registered contact details updated on the e-filing portal; 2) Check the portal regularly for notices and respond within the deadline; 3) Request a video conferencing hearing if you disagree with a draft order; 4) Maintain digital copies of all documents submitted electronically.

If the other side has already issued a notice, filed a case or set a deadline, treat the matter as time-sensitive — most remedies under Income-tax Act, 1961, Section 144B carry limitation periods, and a delay you cannot explain weakens an otherwise strong case. You can post the details on the MyVakeel forum for a practising advocate to review, or book a paid consultation with a Bar Council verified lawyer in this practice area.