MISCELLANEOUSCentral
Section 532 of Income Tax Act 2025 in hindi
- (1)The Central Government may, by notification, make a scheme for any of the purposes of this Act, so as to impart greater efficiency, transparency and accountability by—
- (a)eliminating the interface with the assessee or any other person to the extent technologically feasible;
- (b)optimising utilisation of the resources through economies of scale and functional specialisation.
- (2)The Central Government may, for the purposes of giving effect to the scheme made under sub-section (1), by notification, direct that any of the provisions of this Act shall not apply or shall apply with such exceptions, modifications and adaptations as specified in the notification.
- (3)Where a scheme has been notified under the provisions of the Income-tax Act, 1961 (43 of 1961) with a view to eliminating the interface with the assessee or any other person, the Central Government may, by notification, amend or modify the said scheme as per the provisions of sub-section (1), and the provisions of sub-section (2) shall apply accordingly.
- (4)Every notification issued under sub-sections (1), (2) and (3) shall, as soon as may be after the notification is issued, be laid before each House of Parliament.
Summary
- The Central Government can create new administrative schemes under this Act by issuing a public notification.
- These schemes are designed to make tax administration much more efficient, transparent, and accountable.
- The schemes achieve this by reducing or eliminating face-to-face contact (the interface) between tax officers and taxpayers (assessees) through modern technology.
- They also optimize the use of resources through economies of scale (cost savings from large operations) and dividing work into specialized roles (functional specialization).
- To make a scheme work, the government can issue a notification declaring that certain provisions of this Act do not apply, or apply with specific changes (exceptions, modifications, and adaptations).
- Every notification issued for these schemes must be presented (laid) before both Houses of Parliament (the Lok Sabha and Rajya Sabha) as soon as possible after being issued.
Practical examples
1On June 15, 2026, the Central Government wants to make the tax filing and evaluation process completely paperless. They issue a notification under Section 532(1) establishing a new "Faceless Assessment Scheme." To implement this, they direct under Section 532(2) that the normal physical service rules for notices under the Act will not apply to taxpayers like Rajesh, and instead, notices will only be served online to his registered e-filing portal.
2An old faceless inquiry scheme was set up in 2022 under the Income-tax Act, 1961. After the new law comes into force, the Central Government decides on September 1, 2026, to update this scheme to align with the Income-tax Act, 2025. They issue a notification under Section 532(3) modifying the old scheme and then present this notification to both the Lok Sabha and Rajya Sabha as required under Section 532(4).
FAQ
1. What is the main purpose of framing schemes under Section 532?
The main purpose is to bring more efficiency, transparency, and accountability to tax administration.
2. How do these schemes physically change how taxpayers interact with tax officials?
They eliminate direct contact (interface) between taxpayers (assessees) and tax authorities to the extent technologically possible.
Test yourself
Q1.What are the three core objectives of framing schemes mentioned in Section 532(1)?
Q2.How does Section 532(1) propose to optimize the utilization of tax resources?
Q3.Under Section 532(2), what can the Central Government do by notification to give effect to a scheme?
Q4.What can the government do under Section 532(3) to faceless schemes notified under the old 1961 Act?
Q5.What must happen to every notification issued under Section 532?