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<h1>Faceless Penalty Scheme 2021: Streamlining Electronic Penalty Proceedings Under Income-tax Act with Enhanced Transparency and Efficiency.</h1> The Faceless Penalty Scheme, 2021, established by the Central Board of Direct Taxes, facilitates electronic penalty proceedings under the Income-tax Act, 1961. It introduces a centralized system with a National and Regional Faceless Penalty Centres and penalty units for drafting and reviewing penalty orders. The scheme ensures all communications are conducted electronically, utilizing digital signatures for authentication. It outlines procedures for initiating, reviewing, and imposing penalties, as well as rectification and appellate proceedings. Personal appearances are not required, but video conferencing is available for hearings. The scheme aims to enhance transparency and efficiency in penalty proceedings.