Saturday 3 August 2013

Problems in filing Incometax Returns in time this year.

I have been suffering like a traveller who tries to book a tatkal train ticket one day before the date of travel, when I was trying to file returns of income now a days

You all know that booking train ticket online during the morning between 10AM and 12 Noon is a very difficult job even for an experienced person. The irctc web site is always busy. Even if I get that website, my bank's ie FEDERAL BANK web site is always busy in the morning and I don't get the tickets but my money would be gone for sometime. 

One can understand that the railways have not increased the fares for a very long time and hence they do not have the funds for modernisation of the website of irctc. But how it is possible for the Incometax Department not to update the capacity of its servers as there is no funds constraint with the Incometax Department.

The Incometax Department wanted all the assessees including salaried class having more than Rs. 5 lacs income to file their incometax return on line. Last year, persons with less than Rs.5 lacs drawing salary income,were exempted from filing Incometax returns. That benefit was taken away this year and they were asked to file their return compulsorily this year. No reason for such a decision was given by the Ministry of Finance. In addition to the salaried class, all persons including businessmen have to file their return before 31st of July this year. (Except persons whose accounts are to be compulsorily audited).

The Incometax Department had changed the Incometax Returns formats and such formats and the schema for software were released very late.

All this led to the people engaging themselves with the website of the department during the last week of July, for registering with the department, then verifying the tax deducted at source details and finally filing the returns. Immagine lacs and lacs of software professionals filing returns on line in the last week of July. This led to non availability of the E filing Website of the department.

When these problems were pointed by the Institute of Chartered Accountants, the Incometax Department had extended the last date for filing of return of Incometax to 05th of August.
This is not enough. Even to-day, I found the department's website busy.

I have been filing the returns of my clients for the past week by waking up around 4 AM and filing the returns. I have tried even at around midnight but failed. But in the early morning I was able to file the returns.

As a professional with experience, I was able to do some justice to some of my clients. But immagine a new assessee with little experience in computer operations,filing returns in such circumstances?

Therefore my request to the Ministry of Finance is two fold. 
Increase the server capacity of the department manifold,
Design and publish the new return formats every year on 1st of April.

2 comments:

Unknown said...

Adding to this another Chapter to this issue is TRACES. Many Tax Dedicators are suffering a lot this year because of the change in this website as u stated earlier. Any correction in 26Q is another big problem as they ask for nearly the life history of each deductor and deductee for every correction and also the time frame fixed by them.

Unknown said...

Very true. I don't see what is the problem with publishing the new tax scheme on 1st of april every year as the forms are notified earlier. They expect timely compliance only from the assessees.