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Tag: income tax portal

  • Will the proposed frequent ITR assist in tax compliance?

    In line with the federal government’s course to simplify the tax submitting course of and improve the benefit of compliance, the earnings tax division has introduced in varied modifications within the course of by revamping the earnings tax portal, introducing the pre-filed ITR types, and so forth.

    Going a step forward, the Central Board of Direct Taxes (CBDT), on 1 November 2022, launched the Proposed Draft Common Income Tax Return Form (Common ITR Form) and requested inputs from stakeholders and most people by 15 December 2022. The proposal has been made with the intent to make the return submitting course of user-friendly and align with worldwide greatest practices. Some of the important thing factors of the draft Common ITR Form, because it stands at the moment, are talked about beneath to grasp what this type is all about. However, based mostly on the stakeholders’/ public feedback, this will likely bear modifications.

    Common ITR Form

    CBDT has provide you with the proposal to merge all the prevailing ITR types aside from ITR 7 (relevant for belief, non-profit organizations, and so forth.). Also, the taxpayers can proceed submitting the tax return utilizing both the prevailing ITR 1 and ITR 4 types (as relevant) or the Common ITR Form, as per their comfort.

    Common ITR Form is designed to customise the ITR kind to the taxpayer’s details, with the schedules relevant to the taxpayer, based mostly on sure questions (wizard questions) answered by the taxpayer. Further, the questions are framed in such a way that taxpayers are solely required to reply ‘yes/no’ and if the reply to any query is ‘no’, the linked follow-up questions won’t be exhibited to the taxpayer.

    The Common ITR Form will proceed to ask for sure important particulars equivalent to primary info, schedule for computation of whole earnings (Schedule TI), schedule for computation of tax (Schedule TTI), particulars of financial institution accounts, and a schedule for the tax funds (Schedule TXP), that are relevant to all of the taxpayers. The different schedules can be seen and required to be crammed solely upon the wizard questions being answered ‘yes’ by the taxpayers.

    While merging all of the ITR types, the federal government has additionally regarded into together with further questions for higher reconciliation of knowledge and elevated compliance. A number of of the fields which have been added within the proposed Common ITR Form are the main points of the lender of the housing mortgage and particulars requesting info for taxation of earnings from Virtual Digital Asset (VDA). Specific consideration has been given to VDA by inserting a brand new schedule whereby the taxpayers can be required to offer particulars of earnings from VDA, and value of acquisition incurred, if any.

    Some advantages of the frequent ITR Form:

    · As per the prevailing ITR types, taxpayers are required to pick out the right ITR kind relevant to them based mostly on the heads of earnings and earnings earned. To put this problem to relaxation and keep away from confusion among the many taxpayers, the Common ITR Form can be out there to all taxpayers (except for ITR 7) and thereby improve ease of compliance.

    · Once the taxpayer solutions the wizard questions, the utility can be custom-made and solely the relevant schedules for questions answered as ‘yes’ can be seen. For instance, if the taxpayer has solely long-term capital positive factors (LTCG) from the sale of fairness shares, then relevant fields of schedule CG referring to solely LTCG shall be seen to him. This brings ease to the method of submitting returns.

    · Instructions have been added containing the instructions concerning the relevant schedules to help within the submitting of ITR.

    · It additionally facilitates elevated scope of pre-filling by the reconciliation of third-party information out there with the tax division vis-à-vis the information to be reported within the ITR, to make sure that all of the sources of earnings have been reported by the taxpayer and thereby decreasing the compliance burden on the taxpayers.

    As it is a draft Common ITR Form proposed by CBDT, there could also be sure modifications/modifications when the ultimate kind is launched for tax submitting, upon receipt of inputs from stakeholders and the general public.

    Amarpal S. Chadha is tax accomplice, EY India. Shanmuga Prasad, director, EY India, contributed to this text.

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  • Working very carefully with I-T dept on tax portal: Infosys CEO Salil Parekh

    Infosys CEO Salil Parekh on Wednesday stated the corporate is working carefully with the Income Tax (IT) division on the following set of areas associated to the I-T portal as new modules will probably be added to it.

    Infosys has developed the brand new revenue tax e-filing portal ‘www.incometax.gov.in, however quickly after it went dwell taxpayers flagged many glitches that led to criticism of the IT firm.

    Following glitches within the portal, the IT division needed to permit handbook submitting of remittance varieties and prolonged the due dates for digital submitting of varieties associated to intimation by pension funds and sovereign wealth funds.

    The authorities on Tuesday prolonged until March 15 the deadline for corporates to file Income Tax returns for the fiscal ended March 2021. This is the third extension given to corporates for submitting the revenue tax return for 2020-21 fiscal. The unique deadline for submitting ITR for corporates was October 31, and people with switch pricing transactions was November 30.

    Over 5.62 crore returns have been filed until December 31 final yr.

    “On the I-T project, we are extremely proud that as of December 31, as was reported, 5.8 crore returns were filed through that timeframe. On the day itself, over 46 lakh returns were filed and the deadline was maintained…” Parekh instructed reporters after the corporate introduced its earnings.

    He additionally stated that customers have been in a position to make use of the portal to file their tax returns and that the corporate was grateful that it might contribute to the Digital India imaginative and prescient.

    “Going forward, we are working very closely with the (I-T) Department on the next set of areas that will become part of this system as new modules are put together,” he stated.

    In the wake of glitches being reported on the portal, the finance ministry on August 23 had “summoned” Parekh to elucidate why points continued to plague the portal.

    Several technical points have since been resolved and the efficiency of the portal has considerably stabilised.

    On December 16, senior officers of the ministry had a gathering with the Infosys group on the preparedness of the e-filing web site throughout the peak submitting interval.

    In that assembly, Infosys had knowledgeable the officers concerning the steps taken, together with augmentation of the technical infrastructure and establishing a devoted warfare room to observe the efficiency of the portal.

    (With inputs from PTI)

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  • With new I-T portal ‘stabilising’, taxpayers urged to file ITRs on the earliest

    The revenue tax division has urged taxpayers to file their revenue tax returns for the monetary 12 months 2020-2021 on the earliest and stated the efficiency of the brand new I-T portal has “substantially stabilised.”

    Yesterday, Infosys CEO echoed the identical sentiment, saying the portal is seeing “steady progress” and taxpayers’ issues are being “progressively addressed”.

    He, nonetheless, didn’t point out by when will technical glitches be absolutely resolved and all features on the portal will likely be out there to tax filers.

    Over 2 crore ITRs for the monetary 12 months 2020-21 have been filed to date, stated the IT division. To make the method extra simpler, all ITRs have been made out there for e-filing.

    The new portal was launched on June 7 and within the preliminary interval, taxpayers had reported glitches and difficulties within the functioning of the portal.

    “More than two crore ITRs for AY 2021-22 have been filed on the portal, of which ITRs 1 and 4 constitute 86 per cent. It is encouraging to note that more than 1.70 crore returns have been e-verified, out of which 1.49 crore are through Aadhaar based OTP,” the CBDT stated in an announcement.

    The tax division has stated that numerous technical points have since been resolved and the efficiency of the portal has considerably stabilized.

    “Over 13.44 crore unique taxpayers have logged in till 13 October, 2021. Approximately 54.70 lakh taxpayers have availed of ‘forgot password’ facility to obtain their passwords,” it added.

    The CBDT has issued refunds of over ₹84,781 crore to greater than 59.51 lakh taxpayers from 1 April to 11 October. Of the whole refunds, Income tax refunds of ₹22,214 crore have been issued and company tax refunds of ₹62,567 crore have been issued.

    Filing an ITR early has many advantages for taxpayers. Even although the federal government has offered aid in timelines, there isn’t a escape on the penalty for late submitting of returns. Many taxpayers finally pay curiosity for delay in return submitting and cost of tax.

    Apart from the curiosity on tax payable, lacking the due date attracts late payment as properly.

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  • Some customers dealing with ‘difficulties’, will ‘streamline’ I-T portal: Infosys

    Infosys on Thursday acknowledged that some customers proceed to expertise difficulties in accessing the earnings tax portal and warranted that it’s working expeditiously, in collaboration with the Income Tax Department, to additional streamline end-user expertise.
    The Bengaluru-based firm mentioned the portal has seen regular improve in utilization over the previous few weeks, and greater than three crore taxpayers have logged into it and efficiently accomplished varied transactions.
    “Even as the portal makes sustained progress with crores of taxpayers successfully performing transactions, the company acknowledges the difficulties some users continue to experience and is working expeditiously, in collaboration with the I-T Department, to further streamline end-user experience,” Infosys mentioned in a press release.
    It added that over the previous few weeks, the portal has seen regular improve in utilization with “taxpayers’ concerns being progressively addressed”.

  • Income tax portal: Despite glitches, 1.19 crore ITRs filed up to now for AY 2021-22

    Despite the glitches within the revamped e-filing portal of the Income Tax Department, the Income Tax Return (ITR) submitting has elevated to three.2 lakh day by day in September 2021 and 1.19 crore ITRs for AY 2021-22 have been filed up to now, in accordance with an announcement issued by the Finance Ministry.

    “The Income Tax Return (ITR) filing has increased to 3.2 lakh daily in September 2021 and 1.19 crore ITRs for AY 2021-22 have been filed. Of these, over 76.2 lakh taxpayers have used the online utility of the portal to file returns,” the assertion learn.

    According to an announcement issued by the Ministry, greater than 8.83 crore distinctive taxpayers have logged in until Tuesday with a day by day common of over 15.55 lakh in September.

    What is the brand new earnings tax portal?

    The Income Tax Department in May introduced the launch of its new e-filing portal http://www.incometax.gov.in on June 7. It mentioned the “new taxpayer-friendly portal” could be built-in with instant processing of Income Tax Returns to difficulty fast refunds to taxpayers, with all interactions and uploads or pending actions to be displayed on a single dashboard. Infosys was in 2019 awarded the contract to develop the brand new system.

    What are the technical glitches?

    The much-touted new earnings tax portal had a bumpy begin from the day of its launch on June 7 because it continued to face technical glitches similar to the shortcoming to generate an OTP for Aadhaar validation. In many instances, the OTP will not be reaching the taxpayer for the e-verification of ITR. In the e-proceeding tab, replies can’t be filed as OTP will not be reaching the authorised consultant. The taxpayer is unable to obtain most paperwork from the portal like varieties filed in earlier years.

    15 September deadline for Infosys to repair tax portal glitches

    The Finance Ministry has set 15 September because the deadline for Infosys Ltd to repair glitches which have plagued the earnings tax division’s new e-filing portal.

    ITR submitting deadline

    The due date for people to file earnings tax returns for the FY22 evaluation 12 months is 30 September.

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  • Late submitting price charged regardless of ITR date extension? File rectification request

    Several people who filed their returns after 31 July have been charged a late submitting price of ₹5,000 beneath Section 234F of the Income Tax Act, 1961. The penalty has been charged erroneously because the due date for submitting returns for people has been prolonged to 30 September.

    Multiple technical faults have emerged within the new earnings tax portal launched on 7 June together with the faulty penalty. For such people, specialists suggest submitting a rectification request on-line. However this ought to be accomplished after such requests are enabled by the brand new earnings tax portal, they added.

    “The due date for individuals not subject to audit has been extended from 31st July to 30th September 2021. If due to an error in the system, you have been charged a late filing fee of ₹5,000 under Section 234F, you should file a rectification request for the return online. This can be filed up to 4 years from the date of the assessment order or intimation. On a practical level, the new portal is not currently accepting rectification requests. Hence you should wait until the glitch is fixed and then file the rectification application,” stated Gautam Nayak, Partner, CNK & Associates LLP.

    However, taxpayers ought to notice that although the due date for submitting returns has been prolonged, the date for fee of taxes has not been prolonged. For people liable to advance tax (typically these with a tax legal responsibility of greater than ₹10,000), tax needs to be paid earlier than 15 March in 4 instalments. Any steadiness tax left to be paid after these dates should be paid earlier than the due date of submitting the earnings tax return. Hence, it’s best to calculate and pay all taxes due on the earliest. Failure to take action can appeal to curiosity in addition to penalty.

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  • Tax division should introspect on failure in expertise implementation

    The launch of the brand new revenue tax portal has introduced house the reality about how the tax division has made taxpayers depending on expertise in fulfilling their revenue tax obligations. The current web site was made non-functional from 1 June, and the brand new web site was launched on 7 June. While the web site grew to become accessible solely late within the night on 7 June, even until 15 June, logging in remained a problem, and even when one surmounted that, not one of the features labored.

    Taxpayers eager to make overseas remittances couldn’t add the prerequisite types to make these. All such remittances had been held up from 1 to 14 June, until the federal government clarified that these types may very well be submitted manually to banks first, and uploaded on-line later. Meanwhile, taxpayers additionally obtained notices—these asking them to furnish particulars for evaluation which might in any other case be accomplished ex-parte; show-cause notices threatening levy of penalty until responded to; or notices warning of appeals being disposed of if submissions weren’t obtained in time. They had been left hapless and questioning how the federal government might threaten them with penalties for failure to conform, whereas compliance was not possible.

    This has been the unlucky story of taxpayers in relation to tax compliance up to now as effectively. Compliances are elevated with out regard to the difficulties taxpayers face. The price range amends tax legal guidelines yearly with new provisions to punish taxpayers disproportionate to the offence dedicated.

    Honest taxpayers are sometimes penalized for small offences. A tax deductor could make 1000’s of tax deductions accurately, pay tax in time, file tax deduction returns in time and generate tax deduction certificates. But if he forgets to make one tax deduction, he’s penalized by having the expenditure disallowed, leading to his having to pay revenue tax greater than the tax deduction concerned, in addition to having to pay curiosity and penalty for non-deduction.

    Taxpayers are penalized by not permitting carry ahead of losses in the event that they file their tax returns even someday late, and even when such delay could also be resulting from unlucky circumstances akin to a severe sickness. Charitable trusts are worse off—they lose their tax exemption for the yr in the event that they file tax returns late even by a day. Late cost of provident fund dues by a day (even when the PF web site is down) may end up in big revenue tax liabilities. There are quite a few different such provisions, that are completely unjust.

    Can such compliance be a one-way site visitors, with 100% compliance anticipated from taxpayers, however no reciprocation from tax authorities? Is there no such factor as accountability for the tax division? During covid occasions, many taxpayers had been upset that tax officers got far more time to finish assessments (15 months), than what taxpayers got to file tax returns (lower than 6 months). Was the impression of the lockdown and the pandemic lesser on common taxpayers than tax gatherers?

    In truth, reasonably than the tax division being supportive and assuring taxpayers that they won’t endure due to this non-functional portal, one sees a blame recreation happening between the tax division and the software program developer for the whole failure of the brand new portal. The compliance burden has not been eased.

    Taxpayers positively respect how computerization has accelerated the method of tax refunds, and eradicated a big a part of the discretion that tax officers used as leverage over taxpayers. But they definitely don’t respect being check customers for software program that’s not totally purposeful, leading to wastage of time on rectification functions, appeals, or determining learn how to file return types that don’t totally and accurately replicate the authorized place, or just learn how to get credit score for taxes that seem on-line however don’t seem of their tax assessments (even nearly 20 years after this was computerized). Can amended return types, new software program, new portals, and so on. bear thorough and rigorous testing for numerous conditions, earlier than being launched on hapless taxpayers?

    We boast of a few of the world’s finest software program corporations. If even these corporations are usually not capable of obtain the specified outcomes, one thing is certainly flawed. Is it the specs, the testing methodology, the way during which implementation is rushed or just the extraordinarily sophisticated tax regulation provisions which have resulted in such failures? The tax division positively must introspect, and handle the basis of the issue. It is simply then that taxpayers and tax gatherers will each be proud of the outcomes.

    Gautam Nayak is associate, CNK and Associates LLP.

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  • Income tax returns: New e-filing portal to launch on Monday. Check options

    The Income Tax Department might be launching its new e-filing portal on Monday i.e., seventh June, 2021. The new portal www.incometax.gov.in has launched a number of new options which might be built-in with fast processing of Income Tax Returns (ITRs) for fast refund issuance. The new e-filing portal is aimed toward offering taxpayer comfort and a contemporary, seamless expertise to taxpayers, the Central Board of Direct Taxes (CBDT) mentioned in a press release.

    The taxpayer pleasant portal is built-in with fast processing of Income Tax Returns (ITRs) to problem fast refunds to taxpayers, the assertion added. The cellular app can even be launched subsequent to the preliminary launch of the portal, to allow taxpayers to get conversant in the assorted options.

    Some of the important thing options of the brand new portal are:

    -All interactions and uploads or pending actions might be displayed on a single dashboard for follow-up motion by taxpayer

    -Free of price ITR preparation software program accessible with interactive questions to assist taxpayers for ITRs 1, 4 (on-line and offline) and ITR 2 (offline) to start with; Facility for preparation of ITRs 3, 5, 6, 7 might be made accessible shortly

    -Taxpayers will be capable of proactively replace their profile to supply sure particulars of earnings together with wage, home property, enterprise/occupation which might be utilized in pre-filling their ITR. Detailed enablement of pre-filling with wage earnings, curiosity, dividend and capital good points might be accessible after TDS and SFT statements are uploaded (due date is June thirtieth, 2021)

    -New name middle for taxpayer help for promt response to taxpayer queries. Detailed FAQs, User Manuals, Videos and chatbot/dwell agent additionally supplied;

    -Functionalities for submitting Income Tax Forms, Add tax professionals, Submit responses to Notices in Faceless Scrutiny or Appeals could be accessible.

    The assertion additional clarified that the brand new tax cost system might be launched on June 18th, 2021 after the advance tax instalment date to keep away from any taxpayer inconvenience.

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