Faceless collection of information
[As per the Income Tax Act, 2025 (this Act) w.e.f. 1st April, 2026.]
Section 260(1) of Income Tax Act 2025
260(1) The Central Government may make a scheme, by notification, for the purposes of calling for information under section 252, collecting certain information under section 254, or calling for information by prescribed income-tax authority under section 259, or exercise of power to inspect register of companies under section 255, or exercise of power of Assessing Officer under section 256 so as 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, including to call for, or collect, or process, or utilise, the information, with dynamic jurisdiction.
Section 260(2) of Income Tax Act 2025
260(2) The Central Government may, for the purpose of giving effect to this 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 the notification.
Section 260(3) of Income Tax Act 2025
260(3) Every notification issued under sub-sections (1) and (2) shall, as soon as may be after the notification is issued, be laid before each House of Parliament.
FAQs on Section 260 of Income Tax Act 2025
What is the purpose of Section 260 of the Income Tax Act, 2025?
Section 260 empowers the Central Government to implement a scheme for faceless collection and processing of information under various provisions like Sections 252, 254, 255, 256, and 259 to enhance efficiency, transparency, and accountability.
What does “faceless” mean in the context of Section 260?
“Faceless” refers to eliminating physical or direct interaction between the income-tax authority and the assessee or any other person, as much as technology allows.
What key objectives are outlined under Section 260(1)?
The objectives include (a) reducing direct interface between the assessee and the tax authority, (b) optimal use of resources through economies of scale and specialization, and (c) introducing team-based, dynamic jurisdiction for data handling and collection.
What kind of information does the scheme under Section 260 cover?
The scheme may cover calling for or collecting information under Section 252 (call for information), Section 254 (collection of certain information), Section 255 (inspection of company registers), Section 256 (Assessing Officer’s powers), and Section 259 (prescribed authorities calling information).
Can the Central Government modify provisions of the Act under this scheme?
Yes, under Section 260(2), the Central Government may notify exceptions, modifications, or adaptations of any provision of the Act necessary to implement the scheme effectively.
Is Parliamentary approval required for notifications under Section 260?
Yes, as per Section 260(3), every notification issued under subsections (1) and (2) must be laid before both Houses of Parliament as soon as possible after issuance.
How does Section 260 ensure transparency and accountability?
By using technology to minimize human interaction, optimizing processes through specialization, and ensuring a team-based, jurisdiction-neutral system, Section 260 seeks to reduce discretion and increase objectivity and traceability.
Is Section 260 already in effect?
No, the provisions of Section 260 are effective from 1st April, 2026, as per the Income Tax Act, 2025.
Who will be responsible for implementing the faceless scheme under Section 260?
The Central Government will frame and notify the scheme and designate appropriate authorities for its execution as per the provisions of Section 260.
Does Section 260 only apply to taxpayers?
No, the faceless mechanism under Section 260 can apply to any person from whom information is required, not just taxpayers or assessees.
