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CMA Final · Direct Tax Laws and International Taxation · CBDT and Other Authorities

Which statement about a faceless scheme under section 245 of the Income-tax Act, 2025 is correct?

The Central Government may notify that provisions of the Act do not apply, or apply with exceptions, modifications and adaptations, to give effect to the faceless scheme. The notifications must be laid before Parliament, the scheme may use team-based working, and it is made by the Central Government.

  1. AThe Central Government may, by notification, direct that provisions of the Act do not apply or apply with modifications to give effect to the schemeCorrect
  2. BSuch notifications need not be laid before Parliament
  3. CThe scheme may not provide for team-based exercise of powers by two or more authorities
  4. DThe scheme can be made only by the Board, not by the Central Government

Explanation

Section 245(3) lets the Central Government notify that provisions do not apply or apply with exceptions, modifications and adaptations to give effect to the scheme. Section 245(4) requires the notifications to be laid before Parliament. Section 245(2)(c) expressly contemplates team-based working, and the scheme is made by the Central Government.

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