The Upcoming Revamp of the E-Filing ITR Portal: Project IEC 3.0
The e-filing Income Tax Return (ITR) portal is set to undergo a significant transformation with the introduction of Project IEC 3.0. This initiative, as revealed in an internal circular from the tax department dated October 8, 2024, aims to enhance the user experience for taxpayers and streamline the filing process. The current Integrated e-filing and Centralised Processing Centre (IEC 2.0) is being phased out, paving the way for a more efficient and user-friendly system.
How Project IEC 3.0 Will Benefit Taxpayers
The primary goal of Project IEC 3.0 is to provide a robust e-filing platform that allows taxpayers to electronically file their ITRs, submit statutory forms, and access various other services seamlessly. A crucial component of this project is the Centralised Processing Centre (CPC), which is tasked with processing the submitted ITRs through the e-filing portal and the Income Tax Business Application (ITBA).
According to the internal circular, “Project IEC 3.0 is envisaged to provide not only a continuation of the services rendered by Project IEC 2.0, but also to put in place a significantly improved system to ensure a secure and user-friendly environment.” This indicates a commitment to enhancing the overall experience for users, making it easier for them to navigate the complexities of tax filing.
Seeking Public Input for a Taxpayer-Friendly Portal
Recognizing the importance of user feedback, the income tax department has expressed its intention to gather opinions and suggestions from ITR portal users and other stakeholders before launching the new system. The department stated, “It is considered desirable to hold wide consultations with the various Project IEC users/stakeholders and obtain their opinion/views/suggestions in respect of the good features/deficiencies of the existing Project IEC 2.0 as well as the tangible improvements that may be made in IEC 3.0.”
To facilitate this process, a committee led by an officer not below the rank of Commissioner of Income Tax (CIT) will be established within a week of the circular’s issuance. This committee will be responsible for collecting feedback from department officers, tax professionals, taxpayers, and other stakeholders in their respective regions. The deadline for submitting these responses is set for November 30, 2024.
Expert Insights on the Transition to IEC 3.0
Chartered Accountant Ashish Niraj, a partner at A S N & Company, believes that the transition from IEC 2.0 to IEC 3.0 will significantly enhance the user experience for all stakeholders involved. He notes that Project IEC 3.0 aims to leverage advanced information technology to enable faster processing of ITRs, which could lead to quicker refunds for taxpayers. Niraj emphasizes the importance of stringent data quality checks in the new system, citing issues faced by users in the past, such as difficulties in downloading previous year’s ITR forms and server-related failures.
Moreover, he points out that the introduction of the latest technology in IEC 3.0 could substantially reduce taxpayer grievances, making the filing process smoother and more efficient.
Addressing Technical Glitches and User Concerns
The need for an upgraded e-filing portal has been echoed by various stakeholders, including the Chartered Accountants Association Surat (CAAS). President Hardik Kakadiya highlights the frequent technical glitches experienced during peak filing times, contrasting them with the reliability of e-commerce platforms during high-traffic events. He notes that a writ is already pending before the Gujarat High Court regarding these issues, emphasizing the urgency for improvements in the ITR e-filing portal.
Kakadiya asserts that if the portal is upgraded in a timely manner, it could not only alleviate the hardships faced by taxpayers but also prevent numerous litigations stemming from technical failures.
Conclusion
As the income tax department prepares to roll out Project IEC 3.0, the focus remains on creating a more efficient, user-friendly, and secure e-filing experience for taxpayers. With public consultations underway and expert insights highlighting the potential benefits of the new system, there is optimism that the revamped portal will address the shortcomings of its predecessor and meet the evolving needs of the growing taxpayer base. The commitment to incorporating user feedback into the development process underscores the department’s dedication to enhancing taxpayer services and ensuring a smoother filing experience for all.