Page 32 - Union Budget, 2022

Union Budget, 2022

8 Constitution of - The relevant units wherever
the units mentioned in the process of
assessment, shall refer to AOs having
powers assigned by the CBDT.
9 Scope of the - - Technical units shall now,
review unit additionally handle any technical
matter under DTAA.

- Further, functions such as checking
whether relevant judicial decisions
have been considered and the
arithmetical accuracy of the proposed
variations is brought out from the
scope of a review unit.
10 Authentication Such authentication by NFAC shall NFAC shall authenticate electronic
of electronic be by way of digital signature. records by way of electronic
records communication. Further,
authentication of electronic records by
the different units shall be by digital
signature.
11 Request of Prior approval of CCIT or DGIT of Income-tax authority of the relevant
personal the RFAC is required. unit shall allow it without any prior
hearing during approval.
the proceeding

April 1 , 2022
st

• India has been the first country to adopt and deploy faceless tax assessments. With an aim to reduce
bottlenecks in the proceedings, the procedure has been revamped and re-aligned in order to ensure friction

less completion of assessments.
• The omission of Sec 144B(9) would raise concerns regarding the rights of the assessee in the event of
lapses in assessment proceedings. However, even though the aforesaid sub-section is proposed to be
omitted, the assessee’s rights would be protected under the principle of natural justice and the assessee
could still be able to enforce the procedure laid down for the assessment including personal hearing.

Gross Fixed Capital Formation

Studies

• Gross fixed capital formation (GFCF) is the gross addition to fixed assets, which indicates
Inference the state of investments in the economy.
• Government’s policy thrust on quickening virtuous cycle of growth via capital expenditure
and infrastructure spending has increased capital formation in the economy lifting the
investment to GDP ratio to about 29.6% in 2021-22, the highest in seven years.

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