Budget 2025: Income Tax Dispute Resolution Panel to have Delayed Implementation of Faceless Scheme

The Union Budget 2025 proposed the delayed implementation of the faceless scheme for Income Tax Dispute Resolution Panels (DRP). The scheme, aimed at eliminating human interface and reducing disputes, will not be fully functional as originally planned. The delay was announced due to ongoing challenges in technology and process integration. The objective of the faceless mechanism is to improve efficiency, reduce corruption, and provide taxpayers with a more transparent system. This delay will affect taxpayers who were expecting quicker resolutions through this digital mechanism, meaning the current paper-based process will continue in the meantime. The government intends to provide a revised timeline for the scheme’s implementation once the necessary systems are fully operational and tested.