-Initiatives of the Income tax Department 1
M aking it easier to com ply Incometaxindia.gov.in Internet connectivity National Data Centre Intermediaries 2
E-Services to taxpayers e-filing of Income tax return e-payment of taxes Tax Information Network Communication to taxpayers Refund Banker Scheme PAN/TAN allotment Income Tax Department Website
Increasing effectiveness through E- initiatives Annual Information Returns 360 degree profile of taxpayer Tax Credit Statements Information based selection of cases for scrutiny Sharing of knowledge within organization sharing of best practices, initiatives, investigation, orders
E-FILING OF INCOME TAX RETURNS Return can be prepared and filed by the taxpayer through electronic mode : Enables citizens to file anytime and from anywhere Saves time of the taxpayer Interface between the Income Tax Department and the assessee reduced Saves time of the Income Tax Department in dealing with the returns in physical forms Saves issues up of record keeping and requirement of physical space. Easy availability of returns ensured Accuracy of data ensured Enables faster processing of returns
Types of e-filing E File through e- return intermediary E File without Digital Signature E File with Digital Signature http://incometaxindiaefiling.gov.in ITR-V No Paper return Income Tax Department Local Offices
Tax Information Network Recommendation of the Task Force on Direct Taxes Setting up Tax Information Network outside Income Tax Department TIN is a gateway of electronic information coming to the department from other agencies Hosted by National Securities Depository Limited (NSDL) Information relating to- Tax payments - OLTAS Tax deductions- TDS Annual information Returns - AIR 7
DEDUCTOR TAX PAYER TIN - FC DIRECT UPLOAD OLTAS (BANKS) CENTRAL SYSTEM TIN VIEWS 8 DEDUCTOR VIEW (RETURN STATUS) ITD VIEW TAX PAYER VIEW (26AS)
TAX INFORMATION NETWORK Digitizing the entire process flow of submission of TDS returns Reconciliation of challans with the TDS returns Physical handling of bulky TDS returns done away with Effective record keeping ensured Constant feedback to the deductors and taxpayers possible Matching of tax credit reported by the deductor with the tax credit claim in the Income Tax returns. Involving about 25 Crore entries now possible which was otherwise not possible in manual system Constant feedback about the discrepancies both to the deductors and the assesses possible since last 2 years Growth in TDS is exponential
Electronic TDS returns filed 10
Tax Information Network Online Tax Accounting System (OLTAS) Banks enter challan data and transmit it online to TIN on T+3 basis Float period for banks reduced from 15 days to 3 days. Facility provided for online payment, and viewing status of tax payment Tax deposits at over 13000 branches of 33 designated banks throughout the country More than 2.8 crore tax payment transactions per year 95 % Challans with PAN quoting Better Cash flow 11
E-PAYMENT OF DIRECT TAXES Payment through internet banking enabled from April, 2008 ATM and debit card payments to commence shortly Instant payment of direct taxes eliminates requirement to physical approach to the banks for payment Accuracy of data ensured requirement of stressing of challans in physical forms Taking care of reconciliation of figures, easy and seamless audit trail maintained, A time saving and taxpayer friendly measures.
COMMUNICATION TO TAXPAYERS TAX CREDIT STATEMENTS
COMMUNICATION TO TAXPAYERS TAX CREDIT STATEMENTS 14
COMMUNICATION TO TAXPAYERS Emails Tax payer awareness content Tax credit statements sent to more than 50 lakh taxpayers Confirmation regarding e-income tax returns filed Mobiles Verification of tax payment through sms Education through sms (sent to about 90 lakh users)
REFUND BANKER SCHEME Based on Dividend Distribution process. State Bank of India to act as Refund Banker for Income Tax Department. Once refund is processed by A.O., cheques/ecs to be issued by Cash Management Product Department, SBI, Mumbai. Use of core competence of Banks in mass transfer of funds. Taxpayers grievances about refunds not being issued despite processing taken care of Audit trail of processing of returns and issue of refunds and encashment maintained Requirement of physical handling of refund cheques and writing and despatching them taken care of Bogus refunds taken care of Feedback to the assessee about the status of the refund
FLOW at SBI (CMP CENTRE) BENEFICIARY 5 Dispatch of paper instrument and advices Segregate Electronic / Paper based Instrument 1 ITD / ZAOs PAYMENT FILE Arrange Electonic Payment as per ECS 2 6 MIS advice CMP Centre Print Paper Based Instrument 3 7 Advise ITD ECS Rejections Issue paper based instrument in lieu Of rejects on ITD advises 4
Refund Status Tracking 18
PAN & TAN related Services Electronic Services offered Facilities set up in over 500 cities for receiving PAN applications Filing Online PAN/TAN applications Tracking status of PAN/TAN applications on internet PAN/TAN query facility on internet Grievance handling with Call centre support (0124-2438000) &TIN Call Centre 020-27218080 19
BIOMETRIC PAN Biometrics in the PAN system being considered Will prevent allotment of duplicate PANs Biometric PAN Who you are (name/dob/ ) + What you are (Biometric): Finger prints, Iris, Face, Retina, Voice, DNA, Hand geometry
Departmental websites Law, procedure, circulars, notifications, rates, deductions, exemptions, jurisdictions, FAQs, dates etc. Downloadable Forms Return preparation software Powerful search engine on legal provisions Return preparation software for e-filing of income tax returns. Guidelines for preparing e-returns Filing of e-returns 21
Effectiveness through e-governance Collection of Information a) Annual Information Returns Captures high value transactions involving Cash deposits in savings bank Sale and purchase of immoveable property; High usage of credit cards Investments in mutual funds, shares, bonds For F.Yr. 2007-08, information of deposits/ investment worth Rs. 55000 lakh crores was collected b) Collection of Information from other sources (CIB) Information collected from about 36 codes
Effectiveness through e-governance 360 degree profile of the taxpayer/ group Information in respect of PAN or group of PANs being collated for analysis. Sources include: OLTAS AIR CIB Income Tax Returns TDS Selection of cases for scrutiny (CASS) Selection of scrutiny cases based on specified parameters and correlating income visà-vis information on investment/ expenditure available Non-intrusive means of ensuring correct return of income Tax Credit Statement informs the taxpayer about the source and the extent of income derived by taxpayer. Taxpayer is aware that the information is available with the IT Deptt. and is cautious in reflecting income Pursuing demand in the case of defaulters Since source of income is readily available through TDS returns, arrear demand can be effectively pursued.