Amended and updated notes on section 293D of Income Tax Act 1961 as amended by the Finance Act 2022 and Income-tax Rules, 1962. Detail discussion on provisions and rules related to Faceless approval or registration.
Chapter XXIII (Sections 281 to 298) of the Income Tax Act 1961 deals with the provisions related to Miscellaneous. Section 293D of IT Act 1961 provides for Faceless approval or registration.
Recently, we have discussed in detail section 293C (Power to withdraw approval) of IT Act 1961. Today, we learn the provisions of section 293D of Income-tax Act 1961. The amended provision of section 293D is effective for financial year 2022-23 relevant to the assessment year 2023-24.
In this article, you will learn detail of the provisions of section 293D of the Income Tax Act, 1961 Bare Act read with the Income-tax Rules, 1962 as provided by Ministry of Law and Justice, Government of India.
Section-293D: Faceless approval or registration
Section 293D(1) of Income Tax Act
The Central Government may make a scheme, by notification in the Official Gazette, for the purposes of granting approval or registration, as the case may be, by income-tax authority under any provision of the Act, so as to impart greater efficiency, transparency and accountability by—
- (a) eliminating the interface between the income-tax authorities 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 grant of approval or registration, with dynamic jurisdiction.
Section 293D(2) of Income Tax Act
The Central Government may, for the purpose of giving effect to the scheme made under sub-section (1), by notification in the Official Gazette, direct that any of the provisions of this Act shall not apply or shall apply with such exceptions, modifications and adaptations as may be specified in the notification:
Provided that no direction shall be issued after the 31st day of March, 2022.
Section 293D(3) of Income Tax Act
Every notification issued under sub-section (1) and sub-section (2) shall, as soon as may be after the notification is issued, be laid before each House of Parliament.
[Section 293D has been inserted w.e.f. 01.11.2020 by the Finance Act 2020]