Union Budget 2025-26 (Full) + Finance Bill, 2025

VI. Removing date restrictions on framing the schemes in certain cases

The Central Government has undertaken a number of measures to make certain processes under the Act, electronic, by eliminating person to person interface between the taxpayer and the Department to the extent technologically feasible, and provide for optimal utilisation of resources and a team-based assessment with dynamic jurisdiction. A series of futuristic reforms have been introduced in the domain of Direct Tax administration for the benefit of taxpayers and economy.

2. In this regard, enabling provision for notifying faceless schemes under sections 92CA, 144C, 253 of the Act were introduced in the Act through TOLA with effect from 01.11.2020 and under section 255 of the Act, was inserted through Finance Act, 2021 with effect from 01.04.2021. Further, vide Finance Act, 2022, time limit for notification was extended to 31.03.2024 due to challenges in implementation. Further, vide Finance Act, 2024, time limit for notification was further extended to 31.03.2025 due to various challenges in the formation of the scheme under these sections.

3. In this regard, it is proposed that end date prescribed for notifying faceless schemes under sections 92CA, 144C, 253 and 255 of the Act may be omitted so as to provide that Central Government may issue directions beyond the cut-off date of 31st day of March, 2025, if required.

4. These amendments will take effect from the 1st day of April, 2025.

[Clauses 21, 42, 70 & 71]

 

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Full Text:

Union Budget 2025-26 (Full) + Finance Bill, 2025

Faceless schemes notification: Government may issue ongoing directions allowing notifications beyond the prior cutoff to operationalise schemes. The amendment removes the statutory end date for notifying faceless schemes so the Central Government may issue directions to notify and operationalise faceless procedures under the direct tax statute beyond the prior cut off, following prior extensions due to implementation challenges; the change takes effect from the first day of April after enactment.