Section 245 of the Income-tax Act, 2025 — Faceless Jurisdiction of Income-tax Authorities

In plain language

What Section 245 actually deals with

Section 245 of the Income-tax Act, 2025 empowers the Central Government to create a faceless scheme for the way income-tax authorities exercise their jurisdiction and powers. In plain words, it is the legal backbone that lets the tax department run assessments, verifications and jurisdictional functions online, without face-to-face contact between the officer and the taxpayer. It is the 2025 Act's re-enactment of the old Section 130 of the Income-tax Act, 1961 — the wording and intent are almost identical.

Do not confuse it with the well-known "Section 245 intimation" of the 1961 Act (adjustment of refund against outstanding demand). Under the 2025 Act that refund-adjustment power sits in a different section. Section 245 2025 is purely about faceless jurisdiction.

The four sub-sections in simple terms

• Sub-section (1): The Central Government may, by notification, make a scheme covering the powers/functions of authorities under Section 241, the jurisdiction of the Assessing Officer under Section 242, the power to transfer cases under Section 243, and jurisdiction on change of incumbent under Section 244.
• Sub-section (2): The scheme must aim at greater efficiency, transparency and accountability by (a) eliminating the interface between the authority and the taxpayer to the extent technologically feasible, (b) using resources through economies of scale and functional specialisation, and (c) introducing a team-based, concurrent, dynamic jurisdiction where two or more officers act together.
• Sub-section (3): The Government may direct that certain provisions of the Act shall not apply, or shall apply with exceptions, modifications and adaptations, so the faceless machinery can function smoothly.
• Sub-section (4): Every such notification must be laid before each House of Parliament, providing legislative oversight.

Who it applies to

• All taxpayers — individuals, HUFs, firms, LLPs, companies and others — whose cases fall within a notified faceless scheme.
• Income-tax authorities themselves, whose traditional territorial jurisdiction is replaced by a dynamic, automated allotment of cases.
• It is an enabling / administrative provision. It does not by itself create a tax liability; it changes how and by whom your case is handled.

Key concepts and conditions

• Dynamic jurisdiction: Cases are allotted by an automated system, often randomly, so no single officer "owns" your file based on where you live or work.
• Team-based working: Different units (e.g. assessment, verification, technical, review) handle different parts of the same case concurrently.
• No exceptions/modifications without notification: The Government can switch off or tweak provisions only through a gazette notification that is tabled in Parliament.

How it interacts with related sections

• Section 241 fixes the general jurisdiction of authorities; Section 245 lets that be exercised facelessly.
• Section 242 decides which Assessing Officer covers you (by place of business or residence); the faceless scheme overrides the manual link.
• Section 243 (transfer of cases) and Section 244 (change of incumbent) continue to operate, but faceless allocation reduces the need for physical transfers.
• It dovetails with the faceless assessment, faceless appeal and faceless penalty schemes framed under other provisions of the 2025 Act.

Practical implications for you

• You will usually not know or meet the officer assessing you; all notices and replies flow through the e-filing / compliance portal.
• Keep your registered email and mobile updated — faceless notices are served electronically and deadlines run from the date on the portal.
• You can seek a personal hearing via video conferencing where the scheme allows it; there is normally no walk-in to a local office.
• Because jurisdiction is automated, arguing that "the wrong officer issued the notice" is far weaker than under the old manual system.