Faceless jurisdiction of income-tax authorities
[As per the Income Tax Act, 2025 (this Act) w.e.f. 1st April, 2026.]
Section 245(1) of Income Tax Act 2025
245(1) The exercise of following powers for the purposes mentioned in sub-section (2) shall be as per a Scheme made by the Central Government:––
- (a) all or any of the powers and performance of all or any of the functions conferred on, or, assigned to, income-tax authorities under this Act referred to in section 241; or
- (b) vesting the jurisdiction with the Assessing Officer under section 242; or
- (c) power to transfer cases under section 243; or
- (d) exercise of jurisdiction in case of change of incumbency under section 244.
Section 245(2) of Income Tax Act 2025
245(2) The purposes of the Scheme referred to in sub-section (1) shall be to impart greater efficiency, transparency and accountability by—
- (a) eliminating the interface between the income-tax authority and the assessee or any other person, to the extent technologically feasible;
- (b) optimising utilisation of the resources through economies of scale and functional specialisation;
- (c) introducing a team-based exercise of powers and performance of functions by two or more income-tax authorities, concurrently, in respect of any area, or persons or classes of persons, or incomes or classes of income, or cases or classes of cases, with dynamic jurisdiction.
Section 245(3) of Income Tax Act 2025
245(3) The Central Government may, for the purpose of giving effect to the Scheme made under sub-section (1), by notification, direct that any of the provisions of this Act shall not apply or shall apply with such exceptions, modifications and adaptations as specified in such notification.
Section 245(4) of Income Tax Act 2025
245(4) Every notification issued under sub-sections (1) and (3) shall, as soon as may be after the notification is issued, be laid before each House of Parliament.
FAQs on Section 245 of Income Tax Act 2025
What is meant by faceless jurisdiction under Section 245 of the Income Tax Act, 2025?
Faceless jurisdiction refers to a mechanism where income-tax functions are carried out without direct interaction between the assessee and income-tax authorities, through a Scheme notified by the Central Government to enhance efficiency, transparency, and accountability.
Which powers can be exercised under the Scheme notified as per Section 245(1)?
The Scheme may cover powers and functions under Section 241, vesting jurisdiction with the Assessing Officer under Section 242, transfer of cases under Section 243, and handling jurisdiction in case of change of incumbency under Section 244.
What are the objectives of implementing such a faceless Scheme?
The objectives include eliminating interface between taxpayers and authorities where technologically feasible, optimizing resource use via economies of scale and specialization, and enabling concurrent team-based functioning of income-tax authorities through dynamic jurisdiction.
Who is responsible for creating the Scheme under Section 245?
The Central Government is responsible for making the Scheme through a notification in the Official Gazette.
Can the provisions of the Income Tax Act, 2025 be modified for implementing the Scheme?
Yes, under Section 245(3), the Central Government may notify that certain provisions of the Act shall not apply or shall apply with exceptions, modifications, or adaptations to give effect to the Scheme.
Is Parliamentary oversight required for such notifications?
Yes, every notification issued under sub-sections (1) and (3) must be laid before both Houses of Parliament as soon as possible after issuance.
What does “team-based exercise of powers” mean in this context?
It means that more than one income-tax authority may perform functions concurrently over a specific area, person, class of persons, income, or case, thereby facilitating shared responsibilities and enhanced specialization.
Does faceless jurisdiction apply to all taxpayers?
The Scheme may apply to specific areas, persons, classes of persons, or types of income or cases as defined by the notification issued by the Central Government.
When does the faceless jurisdiction Scheme come into effect?
The provisions of Section 245 come into force from 1st April, 2026, unless a different date is specified in the notification.
