“The great aim of education is not knowledge, but action.” – Herbert Spencer Traditional assessment methods dominated by the unseen examination somehow failed to cater to the diverse learning outcomes whereas current society demands a more sophisticated use of assessment to encourage high-level learning. In the light of NEP(2020) and considering the context of 21st century education, it is high time for a paradigm shift in the field of assessment where the focus of assessment should be shifted from rote learning to competency based assessment which builds on higher order skills among students. NEP 2020 stressed upon the need for channelizing the innovative potential of each student. Assessment using innovative approaches can enable learners to contemplate upon the skills needed for society, workplace and education. This calls for redesigning training programs of teacher education institutes where prospective teachers get acquainted with the latest assessment techniques and become instrumental in bringing reforms in internal assessment which carries a bigger weightage in B Ed Curriculum and assessment .There should be a scope of flexibility catering to students’ interest and skills; researchers through this paper have recommended categorizing internal assessment into 3 categories: broad based, creation based and field based work which can enhance the scope of students experiences of assessment as well as of feedback. This paper summarizes with suggestions of using multiple sources of data like rubrics, peer assessment; self-assessments; self-reflections, use of digital tools and concept maps for holistic assessment which can reduce subjectivity from teachers being a single source of assessment to holistic perspectives of assessment.