As per the data available with the govt, the tax collections increased significantly from Rs 6.38 lakh crore in 2013-14 to almost Rs 12 lakh crore this year
If everything goes well, within the next two years all your interactions with the income tax department regarding assessment and verification will happen electronically, with no personal interface, thereby reducing chances of being harassed by officials during the process.
Finance Minister, Piyush Goel, during the budget announcement on Thursday, said that almost all verification and assessment of returns selected for scrutiny will be done electronically through “anonymised” back office, which will be manned by tax experts and officials without any personal interface between taxpayers and tax officers.
Since the past couple of years, the government has been working on putting across a system in the income tax department which will leave a visible trail of what work is pending in with whom, where, and for how long. Introduction of a technology-driven system in order to eradicate the rampant corruption in the income tax department has been a long pending demand from stakeholders. The Income tax department is considered to be amongst the most corrupt government departments. “The idea is to remove opportunities for corruption,” said a senior partner, in one of the top four global consultancy firms.
Sources in the income tax department reveal that in the manual system, income tax officials often, in connivance with intermediaries, touts and chartered accountants played around the system to lower the tax liabilities of an assessee in exchange for gratification.
There were even complaints about unnecessary harassment of genuine taxpayers waiting for their returns. Insiders claim that tough automation has reduced instances of corruption in recent years, though the process has been slow.
“I am not saying, automation will completely weed out corruption in income tax related matters, but yes it will surely reduce it to a considerable extent,” said a Mumbai-based chartered accountant, aware about the wheeling-dealings in the income tax department.
Experts point out that a similar initiative in the passport department in the past few years have helped in transforming the entire system, as result of which now applicants can get the passport delivered within days instead of months earlier.
As per the data available with the government, tax collections increased significantly from Rs 6.38 lakh crore in 2013-14 to almost Rs 12 lakh crore this year.
The number of returns filed have also increased from 3.79 crores to 6.85 crores showing 80% growth in the tax base. Last year, 99.54% of the income-tax returns were accepted as they were filed.
According to government officials, in the new system, the taxpayer will not come to know who is the officer dealing with her/his case. Similarly, the tax officials will not know about the identity of the taxpayer.
Thus, mechanisation will help in bringing transparency in the entire system. Further, the automated system will be time-bound, which means the official accessing a file, will have to complete the process within the stipulated time.
“If there is any delay, then the officer will be required to give reasons for it.” said an industry insider aware about the developments.
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