Would like to share this intersting article I just came across while browsing through The Indian Express website:
The average person would know only as much about his/ her income tax return as about atomic bombs. The Income Tax Department allows its assessees to file Indian tax returns electronically. This requires opening an account on the income tax website (www.incometaxindiaefiling.gov.in). At the time of e-filing the return, the assessee has two options; either to upload the return after signing it digitally or to submit the return electronically without it.
When the return is uploaded without digital signature, the acknowledgement generated in form ITR-V is required to be signed and sent to the Central Processing Centre (CPC) in Bangalore through ordinary post within 120 days of e-filing the return.
The CPC updates its system when it receives form ITR-V and the assessee can check the status online.
While electronic filing of returns has made things a lot simpler, recently, there have been cases where the CPC has not received an ITR-V that was sent in time by the assessee. This has lead to assessee's hardships like, in some cases the return has been declared invalid and in other instances, the assessees have had to resubmit the return.
In the recent case of Crawford Bayley and Co, the Bombay High Court held that a return filed online cannot be treated as invalid on the grounds that CPC has not received the ITR-V sent by the assessee through ordinary post.
If an acknowledgement is not received by the CPC, the CPC/ assessing officer should consider the return defective in accordance with section 139(9) of the Income Tax Act 1961. Further, they should issue a notice to the assessee to correct the defect within 15 days of receipt of the notice by resubmitting the signed acknowledgement/ ITR-V to the jurisdictional assessing officer.
It is quite evident from the High Court judgement that if the fault is due to the communication method specified by the department, i.e. ordinary post, the assessee should not be held responsible for it. The Central Board of Direct Tax has recently issued a notification dated 3 January, 2012 with immediate effect which allows an assessee to send the ITR-V via speed post.
One can safely say that the electronic filing of returns has several advantages for modern day users. It saves a visit to the tax office and provides time flexibility since the return can be filed any time on or before the due date from the comfort of home.
However, just as every coin has two sides, e-filing has its own drawbacks. The role of the assessee does not end with uploading the return electronically and the income tax website does not always work properly due to network traffic during the filing season. Also, an assessee without a digital signature has to go through additional procedures.
In conclusion, while e-filing is a good facility, the administrative procedures are overly complicated.
Some suggested improvements that come to mind are the option to send ITR-V by courier/ registered post, daily updating by the CPC of receipt of form ITR-V, not to consider returns as invalid for non-receipt of ITR-V etc.
Quick steps to be followed after filing online returns:
1. Review and print Form ITR-V as per instructions by the CPC
2. Sign the verification portion of Form ITR-V
3. Send Form ITR-V to CPC within 120 days of e-filing
4. Regularly check whether the CPC has updated the online status to indicate receipt of Form ITR-V
5. Resubmit Form ITR-V if it has not been received by the CPC
6. Keep all evidence related documents of ordinary post sent to CPC
The Authors are Sunita Seth, Assistant Manager & Vikas Birla, Associate, PwC India
Source: https://www.indianexpress.com/news/drawbacks-of-online-tax-filing/928221/0
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