E-Filing of Income Tax returns: Awareness and Satisfaction level of salaried employees

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ISSN: 2347-3215 Volume 2 Number 9 (September-2014) pp. 39-45 www.ijcrar.com E-Filing of Income Tax returns: Awareness and Satisfaction level of salaried employees K.Rajeswari* and T.Susai Mary Research Centre in Commerce, SFR College for Women, Sivakasi, Tamilnadu, India Corresponding author KEYWORDS Income Tax Returns (ITR s), e government, Awareness and Satisfaction level of salaried employees A B S T R A C T The Income Tax Department has established a system for centralised processing of returns and one prominent type of e - government is the introduction of the e-filing system for income tax. The department desired a system that would make the process of filing of Income Tax Returns (ITR s) easier for tax payer as well as reduce the time required for data entry at their end on receipt of ITR s. The biggest impediment to the proper functioning of the IT department is the severe shortage of officers and staff. It is widely accepted that a significant portion of potential tax revenue is not collected because of poor tax administration and high tax evasion in India. The e- filing is the new effective method of filing income tax return through online and make e-payment tax. Despite many benefits associated with e-filing, tax authorities face some major challenges towards the implementation of the e- filing system. One such challenge is the public perception of the e-filing system. After using an e-service over the Internet, the public may find that whether the e-service system is easy and useful or otherwise Introduction The Governments around the world are increasing the use of information and communication technologies to improve the delivery of public services and the dissemination of public administration information to the public. Thus, the success of e-government depends on the importance that citizen s place on factors such as convenience and usefulness of such services. Various measures have been taken by the Indian government over the past few years. Simplification of tax administration has been high on the government's agenda. E- filing is one of the most important and advanced e-government services. It provides convenience to taxpayers for tax assessments and payment. Internet allows consumers to conduct transactions within a few mouse clicks. This convenience can serve as a key driver of e-filing adoption. E- filing provides many aspects of convenience to taxpayers. Hence it is time 39

to file, place to conduct the filing, ease-of use, information searching and online transactions at a degree that is not available through traditional channels..e-filing also offers flexibility of time and reduces calculation error on the tax return form to the taxpayers. Furthermore, e-filing offers many benefits to service providers, which are the tax authorities. To the service provider, e-filing minimizes their workload and operational cost due to the submission of tax returns in a paperless environment. It also reduces the cost of processing, storing and handling of tax returns. The present article has discussed on awareness level of a sample of 120 salaried employees towards e.fling of income tax returns in Sivakasi E- Filing initiative of Indian government The e-filing project is an eminent e- governance and e-delivery measure taken by the Income Tax Department for better services to the taxpayers and was notified in 2006-2007. During the Financial Year 2012-13, the e-filing website has been revamped and made live on 9 th November, 2012 with many new utilities like extension of electronic filing of all other forms as prescribed in the I-T Rules 1962, enabling access to history of returns filed, and other Services in the e-filing website. The project is aimed at enabling E-filing of Income tax returns, Audit Reports and other forms of the Income Tax over Internet directly by taxpayers and through e-return intermediaries (ERIs) on Virtual Private Networks, enabling e-filing of Income Tax Returns and other web enabled services using XML to enable public private participation in the filing of returns. A portal https://incometaxindiaefiling.gov.inis functional with a host of services to taxpayers. The new system also offers personalized services including pre-filling of returns with assesssee details and 26AS data; online and offline filing of returns etc. The system includes submission of online rectifications, verification of status updates for receipt of ITR-V, processing status and refunds for e-filed returns processed at CPC, Bangaluru. Select information is also available through a mobile interface. The new e-filing project has following features, apart from the earlier ones Facility to download Pre-filled XML File -(after Login feature). PAN Details at one place (Name, D.O.B, Status, Gender, Address) -(after Login feature). Request for Intimation - Earlier there was no option to download if mail not received. (Submit request for resend print of Intimation to ITR/PAN Address/New Address or via Email) (After Login Feature). For New Users, Resend Activation Link Feature - Helpful if link not received or mail deleted earlier. User Password can be changed now with Digital Signature Verification also. Feedback Option for User. User can register as a Legal Heir to do e- Filing on behalf of the deceased. This is a new feature provided for Individual user. Quick e-file for ITR-1 (No need to download any utility, No requirement of any software. Just fill and submit like an Online Application Form). Mobile Services can be availed using the url https://incometaxindiaefiling.gov.in/mobil e/. Forms to be authorized by CA with Digital Signature and XML to be uploaded in e-filing portal. (3CA, 3CB, 3CD, 3CEB, FORM 29B). Tax Professional is a new user on this portal. They can e-file Income Tax audit 40

report Forms (other than Income Tax Returns). In the new e-filing project there is dedicated call centre and help desk to deal with any query or grievance related to e- Filing. In the near future following e-filing activities are planned to be added Validation of third party Utilities, Access to internal users such as Assessing Officers over departmental intranet, E enabling all forms of the Income Tax department. Objectives of The Study Hypothesis To measure the level of satisfaction of the respondents towards E-filing. To measure the problems of the respondents towards E-filing. To provide suggestions to make the E-filing pattern of salaried employees in a more attractive way. There is no significant difference between demographic profile and satisfaction towards e filing of income tax returns. Results and Discussion Demographic profile of assesses Demographic information presented in the table above reveals that 73.30 percent of the respondents are male, 43.30 percent of the respondents are between the age group of 30 and 40, 32.5 percent of the respondents are professional degree holders and 42.5 percent of the respondents income level is between 3 Lakhs to 5 Lakhs, Filing of Income tax returns It is found that, a majority of 51.7 percent of the respondents are filing income tax as a regular provision, 32.5 percent of the respondents are filing income tax one month before due date, 60 percent of the respondents are filing income tax with digital signature and 65.8 percent of the respondents are filing income tax returns before due date of filing returns. Awareness towards E-Filing It is clear that out of 120 respondents, 75 respondents collect information about e- filing through tax consultants 62.50 %), 34 respondents know about e-filing through Website(28.33 %), seven respondents collect information about e-filing through friends (5.83 %), Two respondents know about e-filing through newspaper(1.67 %), Two respondents know about e-filing through Advertisement(1.67 %). Level of satisfaction of respondents towards E-Filing Satisfaction being an abstract concept cannot be measured directly in terms of quantitative terms. Satisfaction can be measured indirectly by devising an attitude scale. An attitude scale for measuring the level of satisfaction of e-filing of income tax returns. To analyze the level of satisfaction of the respondents, some important components are identified and a comprehensive study has been made by measuring the level of satisfaction. It is reveals that out of 120 respondents contacted, 70 (58.3 %) respondents have high level satisfaction towards e-filing of income tax returns and 50 (41.7 %) respondents have Low level satisfaction towards e-filing of income tax returns. 41

Characteristics Gender Age Educational qualification Level of Income Table.1 Demographic characteristics of the respondents Group category of No. of respondents Percentage Respondents Male 88 73.30 Female 32 26.70 Below 30 13 10.8 30-40 52 43.3 40-50 35 29.2 Above 50 20 16.7 Secondary School 11 9.2 Diploma 7 5.8 Professional Degree 39 32.5 Bachelor Degree 14 11.7 Masters Degree 37 30.8 Ph.D Degree 12 10.0 2 Lakhs to 3 Lakhs 28 23.3 3 Lakhs to 5 Lakhs 51 42.5 5 Lakhs to 10 Lakhs 29 24.2 Above 10 Lakhs 12 10.0 Table.2 Filing of Income Tax returns Particular Group category of No. of Percentage Respondents respondents Reason for filing returns Regular Provision 62 51.7 Refund Claim 38 31.7 Carry forward of loss 6 5.0 Notice from income tax 14 11.7 department Preparation for filing 1 Month before due date 39 32.5 1 Week before due date 35 29.2 2-3 days before due date 35 29.2 After due date 11 9.2 Digital signature Yes 72 60.0 No 48 40.0 Filing of return after due Yes 41 34.2 date No 79 65.8 Source: Primary Data 42

Table.3 Awareness towards E-Filing Source No. of respondents Percentage(%) Newspapers 2 1.67 Friends 7 5.83 Tax consultants 75 62.50 Advertisement 2 1.67 Website 34 28.33 Total 120 100 Source: Primary Data Table.4 Level of satisfaction Category No. of respondents Percentage High 70 58.3 Low 50 41.7 120 100.0 Source: Computed data H 0 ANALYSIS RESULT Hypothesis 1 Hypothesis 2 Hypothesis 3 Hypothesis 4 Gender is not influencing the respondents level of satisfaction towards e-filing of income tax returns. Age is not influencing the respondents level of satisfaction towards e-filing of income tax returns. Educational qualification is not influencing the respondents level of satisfaction towards e-filing of income tax returns. Annual income is not influencing the respondents level of satisfaction towards e- filing of income tax returns. Rejected Accepted Rejected Accepted 43

Table.5 Problems Faced - Weighted Arithmetic Mean S.NO STATEMENT SA A N D SD TOTAL WAM Rank 1 Lack of experience and knowledge to e-file 19 58 13 24 6 420 28 IV 2 Do not trust e-filing 8 26 34 36 16 334 22.27 VII 3 Unsuccessful attempt to e- file 1 48 34 23 14 359 23.93 VI 4 I do not have a step by step explanation to use e- Filing, therefore I feel 0 21 53 36 10 325 21.67 VIII nervous to use e-filing. 5 Network problem during peak hours 47 39 22 7 5 476 31.73 I 6 Difficult to remember Reg. No/ Password 5 19 35 54 7 321 21.4 IX 7 Delay in execution 21 38 53 6 2 430 28.67 III 8 Digital sign renewal cost is high 22 35 47 9 7 416 27.73 V 9 Computer illiterate & so to depend on others 30 55 13 12 10 443 29.53 II Source: Computed Data Table.6 Suggestions S.NO STATEMENT SA % A % N % D % 1 Genuine usage of 41 34.2 60 50.0 15 12.5 4 3.3 computer software 2 Usage of e-forms to be 17 14.2 97 80.8 6 5.0 0 0 published effectively 3 Free training to 71 59.2 38 31.7 7 5.8 4 3.3 individual 4 Tax payers to be 77 64.2 38 31.7 5 4.2 0 0 motivated 5 Website of income tax dept to be made user friendly 73 60.8 39 32.5 8 6.7 0 0 Source: Primary data Chi-square analysis Chi-square analysis is used to test the hypothesis-there is no significant difference in demographic profile variables of the employees and their satisfaction level towards e-filing of income tax returns.in this study, 15 statements have been formulated to measure the satisfaction level. Likert s five point scale is constructed by awarding scores to these 15 statements. With the help of the scale, the extent of satisfaction has been measured. 44

Problems in E-Filing An analysis on attitude towards e-filing will be incomplete without going into the technical and managerial constrains and problems related to e-filing and options of e- filing pattern. To examine the problems faced in making e-filing, the respondents are asked to express their views on certain problems faced by them in their e-filing. Ranks are provided and weighted average has been calculated. From the above table 3.29, it is known that the foremost problem faced by many respondents is Network problem during peak hours and the second one is Computer illiterate and so to depend on others. Other important problems faced by the respondents are Delay in execution, Lack of experience and knowledge to e-file, Digital sign renewal cost is high, Unsuccessful attempt to e-file, not trusting e-filing, not having clear idea of using e-filing, The last one is the difficult to remember the Reg. No/ Password. Suggestions to Improve E-Filing E-filing brings a security among the income tax assesses. Suggestions to increase e-filing among the people may vary according to their economic position. To examine the suggestions to increase e-filing, the respondents are asked to express their views on certain suggestions included by them in their e-filing. free training to individual e-filing of income tax returns. 64.2 percent of the respondents have strongly agreed for the suggestion that individual taxpayers are to be motivated to e-return filing of income tax return. 60.8 percent of the respondent have strongly agreed for the suggestion that website of the income tax department to be made user friendly. References Geetha R. and Sekar M.(2012) Awareness and Satisfaction level of individual Tax payers in Coimbatore city, India Research Journal of Management Sciences, 1(4),6-11 http://www.incometax india.gov.in/ archive/ Final_AHB_2013.pdf Jahirul Hoque (2011) Tax Evasion and Avoidance Crimes A Study on Some Corporate Firms of Bangladesh Unpublished Thesis, Eastern University, Bangaladesh. Jayakumar A and Nagalakshmi C (2006), Direct Tax Reforms An overview, Southern Economist, July, 9-11. Meenu Gupta.,(2012) The journey of e- filing of income tax returns in India, International Journal of Research in Commerce and Management, 2( 6).180. Pranav Agrawal Madhu Agarwal (2006) E filing of Returns The Chartered Accountant,May 1567-1573 From the above table 3.30, it is inferred that 50.0 percent of the respondents have agreed for the suggestion to Genuine usage of computer software. 80.8 percent of the respondents have agreed for the suggestion that usage of e-forms to be published effectively. 59.2 percent of the respondents have strongly agreed for the suggestion to 45