Chapter XIV - Tax Administration
Section 245
Section 245: faceless jurisdiction of income-tax authorities
Section 245 lets the Central Government put in place a faceless scheme for how income-tax authorities exercise their powers and functions, covering jurisdiction under Section 241, vesting of jurisdiction with Assessing Officers under Section 242, transfer of cases under Section 243, and succession of officers under Section 244.
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This article is for general information. Refer to the Income-tax Act, 2025 as amended by the Finance Act, 2026 and the Taxation and Other Laws (Amendment) Act, 2026 for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
(1) The Central Government may, by notification, make a scheme for the purposes of—
(a) exercise of all or any of the powers and performance of all or any of the functions conferred on, or assigned to, income-tax authorities under this Act referred to in section 241;
(b) vesting the jurisdiction with the Assessing Officer under section 242; or
(c) exercise of power to transfer cases under section 243; or
(d) exercise of jurisdiction in case of change of incumbency under section 244.
(2) The scheme referred to in sub-section (1) shall be made to impart greater efficiency, transparency and accountability by—
(a) eliminating the interface between the income-tax authority and the assessee or any other person, to the extent technologically feasible;
(b) optimising utilisation of the resources through economies of scale and functional specialisation;
(c) introducing a team-based exercise of powers and performance of functions by two or more income-tax authorities, concurrently, in respect of any area, or persons or classes of persons, or incomes or classes of income, or cases or classes of cases, with dynamic jurisdiction.
(3) The Central Government may, for the purpose 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 such notification.
(4) Every notification issued under sub-sections (1) and (3) shall, as soon as may be after the notification is issued, be laid before each House of Parliament.
Introduction
Section 245 is an enabling provision for a notified scheme covering jurisdiction and related administration under Sections 241–244. Its detailed operating rules depend on the applicable government notification.
Key takeaways
A notification creates the scheme
The Central Government may make a faceless-jurisdiction scheme by notification; Section 245 does not itself set out every workflow.
Four jurisdiction functions are covered
The scheme may deal with authority powers, vesting Assessing Officer jurisdiction, transferring cases and a change of incumbent under Sections 241–244.
The design goals are statutory
The stated aims include less direct interface where technologically feasible, efficient resource use and team-based concurrent jurisdiction.
What the scheme can cover
The Central Government may, by notification, make a scheme for exercising all or any of the powers and functions of income-tax authorities under Section 241, vesting jurisdiction with the Assessing Officer under Section 242, transferring cases under Section 243, and exercising jurisdiction on change of incumbency under Section 244.
Objectives of the scheme
The scheme must be designed to impart greater efficiency, transparency and accountability by:
- Eliminating the interface between the income-tax authority and the assessee (or any other person), to the extent technologically feasible
- Optimising resource use through economies of scale and functional specialisation
- Introducing team-based, concurrent exercise of powers by two or more income-tax authorities over an area, persons, income or cases, with dynamic jurisdiction
Power to modify the Act, and Parliamentary oversight
To give effect to the scheme, the Central Government may, by notification, direct that any provision of the Act shall not apply, or shall apply with specified exceptions, modifications and adaptations.
Every notification issued under this section must be laid before each House of Parliament as soon as may be after it is issued.
Step-by-step flow for checking a faceless jurisdiction scheme under Section 245
- 1
Has the Central Government notified a scheme under Section 245(1)?
- No: Sections 241 to 244 apply in the ordinary way.
- Yes: Go to the next step.
- 2
Which function does the scheme cover?
Section 245(1) allows a scheme for: powers and functions under Section 241; vesting jurisdiction with the Assessing Officer under Section 242; transfer of cases under Section 243; and jurisdiction on change of incumbency under Section 244.
- 3
How does the scheme work?
Section 245(2) states its aims: removing the interface between the authority and the assessee to the extent technologically feasible; economies of scale and functional specialisation; and team-based, concurrent working with dynamic jurisdiction. The detailed procedure is in the scheme, not in Section 245.
- 4
Has a notification under Section 245(3) changed any provision of the Act?
The Central Government may direct that a provision does not apply, or applies with exceptions, modifications and adaptations, to give effect to the scheme. Read the Act together with that notification.
- 5
Has the notification been laid before Parliament?
Every notification under Section 245(1) and (3) must be laid before each House of Parliament as soon as may be after issue (Section 245(4)).
Practical checklist
Do
- Check the notified faceless-jurisdiction scheme and its effective date.
- Use the scheme’s prescribed electronic communication channel and keep acknowledgments.
Avoid
- Assume the Act’s general jurisdiction rules apply unmodified where a valid scheme provides otherwise.
Illustrative example
Worked example: a case handled under a faceless scheme
Hypothetical facts (illustration only, not a real taxpayer): A salaried individual receives an electronic communication saying that his case will be handled by a team of officers under a faceless jurisdiction scheme. He has never been told which individual officer is dealing with it.
Find the scheme
He looks for the Central Government's notification under Section 245(1), as the scheme itself sets out how jurisdiction is exercised.
Identify the function
He checks whether the scheme covers the exercise of powers (Section 241), vesting of jurisdiction (Section 242), transfer (Section 243) or change of incumbency (Section 244) in his case.
Check modifications
He checks any notification under Section 245(3) that disapplies or modifies provisions of the Act, since the ordinary rule may not apply in its usual form.
Team working
A team-based approach with dynamic jurisdiction is one of the aims stated in Section 245(2)(c), so several officers working on his case concurrently is consistent with the section.
Outcome
- His case follows the notified scheme and any Section 245(3) modifications.
- Section 245 itself does not set the procedure; the notified scheme does.
Frequently asked questions
Does Section 245 create the faceless scheme itself?
No - it only authorises the Central Government to notify such a scheme; the scheme's actual operational details are set out in the notification, not in the bare text of the section.
What is the stated purpose of a faceless jurisdiction scheme?
To improve efficiency, transparency and accountability by eliminating the interface between tax authorities and taxpayers where technologically feasible, and by enabling team-based, dynamic jurisdiction.
Need help applying this provision to your situation?
Talk to our tax team about faceless assessment jurisdictionLast updated 9 October 2026