The faceless scheme now extended to penalty proceedings1 under the Income-tax Act, 1961 (‘the Act’) - Faceless Penalty Scheme, 2021 notified vide Notification No. 02 /2021 dated 12 January 2021.
Introduced through sub-section (2A) in section 274 of the Act , an enabling provision inserted vide Finance Act 2020.
In line with the reforms initiated by the Tax Department to eliminate human interface from the system and impart greater efficiency, transparency and accountability
Largely similar construct to the Faceless Assessment Scheme and Faceless appeal scheme – similar unit and proceedings mechanism
Assessment Centres / units set up under the Faceless Assessment Scheme to take over penalty proceedings till the time penalty units / centres are set up under this scheme
