-Initiatives of the Income tax Department

(1)

℮

---Initiatives of the

Initiatives of the

Income tax Department

1

Income tax Department

(2)

Internet connectivity

Incometaxindia.gov.in

M akin g it easier to com ply

2

Intermediaries National Data Centre

(3)

E

E--Services to taxpayers

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

(4)

Increasing effectiveness

through E

through E-- initiatives

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,

(5)

E

E--FILING OF INCOME TAX

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

(6)

Types of

e

--Filing

Filing

E File with Digital Signature E File without Digital Signature E File through e-return intermediary http://incometaxindiaefiling.gov.in No Paper return ITR ITR--VV

(7)

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

7 Tax payments -OLTAS Tax deductions-TDS Annual information Returns -AIR

Hosted by National Securities Depository Limited (NSDL)

(8)

to-DEDUCTOR TAX PAYER TIN - FC DIRECT UPLOAD DIRECT UPLOAD

OLTAS

(BANKS) 8 CENTRAL SYSTEM

TIN VIEWS

(RETURN STATUS) DEDUCTOR VIEW (RETURN STATUS)

TAX PAYER VIEW TAX PAYER VIEW

(26AS)

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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

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Electronic TDS returns filed

(11)

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

11

• 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

(12)

E

E--PAYMENT OF DIRECT TAXES

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,

(13)

COMMUNICATION TO TAXPAYERS

TAX CREDIT STATEMENTS

(14)

COMMUNICATION TO TAXPAYERS

TAX CREDIT STATEMENTS

(15)

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

(16)

REFUND

REFUND BANKER SCHEME

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

• 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

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ITD / ZAOs

Segregate – Electronic / Paper based Instrument

Arrange Electonic Payment as per ECS

Dispatch of paper instrument and advices

PAYMENT FILE BENEFICIARY

1

2

5 FLOW at SBI (CMP CENTRE)

FLOW at SBI (CMP CENTRE)

ITD / ZAOs

CMP Centre

Print – Paper Based Instrument

Issue paper based instrument in lieu Of rejects on ITD advises MIS advice

PAYMENT FILE

Advise ITD – ECS Rejections

3

4

7

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Refund Status Tracking

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PAN & TAN related Services

• Facilities set up in over 500 cities for receiving

PAN applications

• Filing Online PAN/TAN applications

• Tracking status of PAN/TAN applications on

Electronic Services offered Electronic Services offered

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• 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

(20)

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

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Departmental websites

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• 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

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Effectiveness through e

Effectiveness through e--governance

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

• 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)

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Effectiveness through e

Effectiveness through e--governance

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 – Selection of scrutiny cases based on specified parameters and correlating income

vis-à-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.