Faceless Assessment Guide 2025: How NFAC Works and How to Respond to Notices
Complete guide to National Faceless Assessment Centre, case selection criteria, notice response process, document submission, and appeal procedures
Written by
CA Ashama Rajawat
Since 2020, India has moved to a faceless assessment system. No face-to-face meetings with tax officers. Everything is online, transparent, and jurisdiction-free.
What is Faceless Assessment?
Faceless assessment is a system where tax scrutiny happens completely online through the National Faceless Assessment Centre (NFAC) without physical interaction between taxpayer and assessing officer.
Key Features
- • No physical appearance required
- • Random allocation of cases (no jurisdiction bias)
- • Document submission via online portal
- • Dynamic jurisdiction (different officers for different stages)
- • Automated notice generation
- • Time-bound process (9-12 months typically)
How Cases are Selected
| Selection Criteria | Risk Category | Probability |
|---|---|---|
| High-value transactions (>₹50L) | High | 30-40% |
| Mismatch in AIS/TIS/26AS | Medium | 20-30% |
| International transactions | High | 40-50% |
| Large refund claims | Medium | 15-25% |
| Random selection | Low | 5-10% |
Faceless Assessment Process
Step 1: Notice Issued (Section 143(2))
You receive notice via email/SMS. Download from income tax portal within 15 days.
Step 2: Response Submission
Upload documents, submit explanation via e-filing portal. No personal hearing.
Step 3: Questionnaire (if required)
Assessing officer may send follow-up queries. Respond within 7 days.
Step 4: Draft Assessment Order (DAO)
Proposed additions/disallowances shared. File objections within 30 days.
Step 5: Final Assessment Order
Order uploaded to portal. If you disagree, file appeal before CIT(A) within 30 days.
How to Respond to Notices
Best Practices
Do's:
- • Download notice immediately (check email/portal daily)
- • Respond within deadline (no extensions in faceless regime)
- • Upload clear, indexed documents (PDF, max 10MB per file)
- • Write detailed explanations (officer can't ask follow-ups easily)
- • Cite case laws, CBDT circulars in your favor
- • Keep acknowledgment receipts of submissions
Don'ts:
- • Don't ignore notices (best judgment assessment = 30% penalty)
- • Don't request personal hearing (only in exceptional cases)
- • Don't upload unreadable/incomplete documents
- • Don't miss deadlines (system is strict, no grace period)
- • Don't submit vague responses (be specific with page references)
Document Submission Tips
- ✓Create Index: Submit a master index PDF listing all documents with page numbers
- ✓Bookmarks: Use PDF bookmarks for easy navigation (100+ page documents)
- ✓Naming Convention: Use descriptive filenames (e.g., "Bank_Statement_HDFC_Apr24-Mar25.pdf")
- ✓Cover Letter: Always submit a detailed cover letter summarizing your case
Common Issues in Faceless Assessment
Issue 1: Short Time Frames
7 days to respond to queries is tight. Keep documents ready proactively.
Issue 2: No Clarification Opportunity
Can't meet officer to explain verbally. Written response must be crystal clear.
Issue 3: Technical Glitches
Portal errors happen. Take screenshots, raise grievance via "Aaykar Setu".
When You Can Request Personal Hearing
Limited Circumstances
Personal hearing is NOT automatic. Allowed only in exceptional cases:
- • Complex technical issues requiring verbal explanation
- • Conflicting judicial precedents need discussion
- • Voluminous documents (1000+ pages) difficult to submit online
Important: Request must be made via portal with detailed justification. Approval at discretion of NFAC.
Timeline & Deadlines
Notice Response: 15 days (strict, no auto-extension)
Questionnaire Reply: 7 days (from receipt)
DAO Objections: 30 days (last chance to present case)
Appeal to CIT(A): 30 days from final order
Conclusion
Faceless assessment is efficient but unforgiving. There's no room for casual responses or missed deadlines. Treat every notice with urgency, maintain organized records, and write responses as if you're arguing in court. If the case is complex or high-value, hire a CA—the cost of representation is far less than the cost of a wrong assessment order.