Direct Tax Laws and International Taxation · CBDT and Other Authorities

Faceless Jurisdiction of Income-tax Authorities under Section 245

Updated 11 October 2026 · Fact-checked

Faceless jurisdiction is a scheme the Central Government may make by notification under section 245. It lets income-tax authorities exercise powers and jurisdiction with minimal human contact, to the extent technologically feasible, using team-based work, specialisation and dynamic jurisdiction. To answer questions, state the enabling power, the purposes, the three aims and the Parliament laying requirement.

Understand Faceless Jurisdiction of Income-tax Authorities

Normally, jurisdiction is territorial. Sections 241 to 244 say which authority acts, by area, persons, incomes or cases. Under that model you deal with a specific officer, usually in person.

Section 245 adds a different layer. It lets the Central Government, by notification, make a scheme for faceless working. The scheme can cover four things: exercise of powers and functions of authorities under section 241, vesting of jurisdiction in the Assessing Officer under section 242, transfer of cases under section 243, and jurisdiction on change of incumbency under section 244.

The Act states why the scheme is made: to bring greater efficiency, transparency and accountability. It names three ways of doing this. First, eliminate the interface between the authority and the assessee or any other person, to the extent technologically feasible. Second, optimise use of resources through economies of scale and functional specialisation. Third, introduce team-based exercise of powers by two or more authorities, concurrently, with dynamic jurisdiction.

The Government can also, by notification, direct that any provision of the Act does not apply, or applies with exceptions, modifications and adaptations, so that the scheme works. Every such notification must be laid before each House of Parliament as soon as may be after it is issued.

Do not confuse section 245 with section 273. Section 273 is the specific faceless assessment provision. It sets up the National Faceless Assessment Centre and assessment, verification, technical and review units, and all communication goes through the Centre electronically. Section 245 is the wider enabling provision for faceless jurisdiction. Questions on centres and units should be answered from section 273, and the section 245 text supplied does not itself name national or regional centres.

Key rules to remember

Enabling power: Section 245(1): Central Government, by notification, may make a scheme for faceless jurisdiction; The scheme covers powers under section 241, jurisdiction of AO under section 242, transfer of cases under section 243 and change of incumbency under section 244.
Three aims of the scheme: Section 245(2): (a) eliminate interface; (b) resource optimisation; (c) team-based work with dynamic jurisdiction; Purpose is greater efficiency, transparency and accountability. Interface is removed only to the extent technologically feasible.
Power to modify the Act: Section 245(3): notification may direct provisions do not apply or apply with exceptions, modifications and adaptations; Only for giving effect to the scheme made under section 245(1).
Parliamentary oversight: Section 245(4): notifications under sub-sections (1) and (3) to be laid before each House of Parliament; Laid as soon as may be after issue.
Faceless assessment machinery: Section 273: National Faceless Assessment Centre + assessment, verification, technical and review units; Communications go through the Centre by electronic mode. Board may set up the units and specify functions.

How to solve Faceless Jurisdiction of Income-tax Authorities questions

Use this method for any question on faceless jurisdiction, whether theory, case-based or MCQ.

1Identify whether the question is about jurisdiction (section 245) or assessment (section 273). Decide which one it tests.
2State who acts: the Central Government makes the scheme by notification under section 245(1).
3List what the scheme covers: sections 241, 242, 243 and 244 matters.
4Give the purpose and the three means in section 245(2): remove interface, optimise resources, team-based dynamic jurisdiction.
5Add section 245(3) if the question mentions modification of provisions, and section 245(4) for laying before Parliament.
6If the facts involve units or communication, bring in section 273: communication through the National Faceless Assessment Centre by electronic mode.
7Apply the rule to the facts and conclude clearly.

Quickest way: Remember the four sub-sections as a chain

When to use it: Use in MCQs or short notes when time is tight.

Sub-section 1: who makes the scheme and for what (Central Government, notification, sections 241 to 244).
Sub-section 2: why and how (efficiency, transparency, accountability; three means).
Sub-section 3: power to modify the Act for the scheme.
Sub-section 4: laying before Parliament.
If the question mentions a Centre or units, switch to section 273.

Common mistakes in Faceless Jurisdiction of Income-tax Authorities

Saying the Board makes the section 245 scheme
Students link all administrative powers to the CBDT.
Fix: Section 245(1) says the Central Government makes the scheme by notification. The Board appears in section 241 directions and section 273.
Writing that interface is eliminated completely
The word faceless suggests no contact at all.
Fix: The Act says eliminating interface 'to the extent technologically feasible'. Quote this qualifier.
Mixing section 245 with section 273
Both are called faceless and appear close together in syllabus lists.
Fix: Use section 245 for faceless jurisdiction and section 273 for faceless assessment with its Centre and units.
Forgetting the Parliament requirement
Students focus on the scheme's purpose and skip sub-section 4.
Fix: Add that notifications under sub-sections (1) and (3) are laid before each House of Parliament.
Treating faceless and territorial jurisdiction as the same
Both decide which authority acts.
Fix: Territorial jurisdiction allocates by area, persons, incomes or cases under section 241. Faceless jurisdiction uses team-based work and dynamic jurisdiction, with minimal interface.

Worked examples

Example 1

State the purposes for which the Central Government may make a scheme under section 245 of the Income-tax Act, 2025 and the ways in which the scheme must promote efficiency, transparency and accountability.

Show the solution

Under section 245(1) the Central Government may, by notification, make a scheme.
The scheme can be for exercise of powers and functions of authorities under section 241, vesting jurisdiction in the Assessing Officer under section 242, transfer of cases under section 243, and jurisdiction on change of incumbency under section 244.
Under section 245(2), the scheme is to impart greater efficiency, transparency and accountability.
The means are: eliminating interface between authority and assessee or any other person to the extent technologically feasible; optimising resources through economies of scale and functional specialisation; and team-based exercise of powers by two or more authorities concurrently, with dynamic jurisdiction.

Answer: The Central Government may make a scheme by notification covering the matters in sections 241 to 244, and it must pursue efficiency, transparency and accountability through reduced interface, resource optimisation and team-based dynamic jurisdiction.

Example 2

The Central Government notifies a faceless jurisdiction scheme and also directs that a certain provision of the Act will apply with modifications for the scheme. Is this permitted? What must be done with the notifications?

Show the solution

Section 245(1) allows the Central Government to make the scheme by notification.
Section 245(3) allows it, to give effect to the scheme, to direct by notification that provisions of the Act do not apply or apply with exceptions, modifications and adaptations.
So the modification is permitted, but only for the purpose of giving effect to the scheme.
Section 245(4) requires every notification under sub-sections (1) and (3) to be laid before each House of Parliament as soon as may be after it is issued.

Answer: Yes, it is permitted under section 245(3) for giving effect to the scheme, and both notifications must be laid before each House of Parliament.

Exam tips

Quote the phrase 'to the extent technologically feasible' when discussing elimination of interface.
In case-based MCQs, check whether the facts concern a scheme under section 245 or the units under section 273 before choosing the option.
Learn the three means in section 245(2) as a short list: interface, resources, team-based dynamic jurisdiction.
For compare questions, set faceless jurisdiction against territorial jurisdiction in section 241 by basis of allocation and style of working.

Practice questions from CBDT and Other Authorities

Faceless Jurisdiction of Income-tax Authorities in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

Faceless Jurisdiction of Income-tax Authorities: frequently asked questions

What is section 245 of the Income-tax Act, 2025?

It lets the Central Government make a scheme by notification for faceless jurisdiction of income-tax authorities. The scheme covers powers under section 241, jurisdiction of the Assessing Officer, transfer of cases and change of incumbency.

What is the difference between faceless and territorial jurisdiction?

Territorial jurisdiction under section 241 allocates work by area, persons, incomes or cases. Faceless jurisdiction under section 245 aims to remove interface, use specialisation and run team-based work with dynamic jurisdiction.

Does section 245 name the National Faceless Assessment Centre?

No. The Centre and the assessment, verification, technical and review units are set up under section 273, which deals with faceless assessment. Section 245 is the wider enabling provision.

Can faceless schemes change other provisions of the Act?

Yes, for the purpose of giving effect to the scheme. Under section 245(3) the Central Government can notify that provisions do not apply or apply with exceptions, modifications and adaptations.