Library / Income-tax Act, 2025: The Professional's Master Guide

41. Digital Compliance and Faceless Procedures

Almost every interaction with the Income Tax Department is now electronic. Knowing the portals and their features saves time and avoids errors.

41.1 The main portals

Portal	Used for
E-filing portal	Registration, returns, forms (audit reports, TP reports, certificates), e-verification, e-proceedings, responses to notices, rectification, appeals, AIS and TIS, refund status, grievances
TRACES	TDS and TCS: statement status, defaults, corrections, downloading TDS certificates (Forms 130, 131, 132), justification reports, Form 168 view
e-Pay Tax	Payment of advance tax, self assessment tax, TDS, TCS, demands and fees through net banking, cards, UPI or over the counter; each payment generates a challan identification number (CIN)
Compliance portal	AIS feedback, e-campaigns on high-value transactions, e-verification of information
NSDL and UTIITSL	PAN applications and corrections

41.2 Good practices

Select the correct tax type and year when paying tax. A self assessment payment wrongly marked as advance tax, or for the wrong year, has to be corrected through the Assessing Officer or the bank, which takes time.
Verify every return promptly. If verification is done after 30 days, the return is treated as filed on the date of verification, which can make it belated.
Keep bank accounts pre-validated for refunds, and update them when accounts are closed.
Use digital signatures where mandatory (companies, audit cases) and keep them valid.
Download and store acknowledgements, intimations, orders and submissions for each year in a structured folder.
Check e-proceedings regularly; notices appear there and also by email and SMS.
Authorise a representative on the portal for clients, so that submissions are made under the correct login with a record.

41.3 Faceless procedures

Assessments, appeals before the Commissioner (Appeals) and penalties are largely faceless. Notices are issued through a national centre; the taxpayer replies online; personal hearing is by video conference in specified cases. Faceless procedures reduce discretion and travel but demand well-drafted written submissions, since there may be no opportunity to explain in person. Write submissions that are complete on their own: facts, law, evidence and a clear conclusion for each issue.

Illustration 146: Paying the right challan

On 25 July 2027, Suman pays the balance tax of Rs. 42,000 for Tax Year 2026-27 before filing her return. She must choose "self assessment tax" and the correct year. If she mistakenly selects "advance tax", the payment will not match her return and she will receive a demand with interest; she will then have to request the Assessing Officer to correct the challan details.

Chapter summary

• Use the e-filing portal, TRACES and e-Pay Tax correctly; select the right tax type and year.

• Verify returns within 30 days.

• Faceless proceedings need complete written submissions.