Despite teething issues, e-filing process largely smooth: CBDT spokesperson

'The faceless assessment scheme in India draws upon the best practices of the UK HRMC and Australian ATO'

This is with reference to the article titled “Torture under transparent taxation” by Debashis Basu, published in the Business Standard on January 17, 2022. In the backdrop of the recently introduced structural reforms, the Income Tax Department (ITD) would like to record certain facts to rectify the wrong impression sought to be created by the article.  

Malfunctioning of the e-filing portal: The Integrated E-filing & Centralised Processing Centre (CPC) 2.0 Project of the ITD (CPC 2.0 Project) was launched with the overall objective of smoothening the process of e-filing and processing of ITRs. Sustained interaction with the MSP by CBDT and all relevant stakeholders, including the systems directorate and representatives from ICAI was ensured with particular emphasis on segregating generic system-based glitches from specific case-based irritants and getting their resolution quickly. A cursory look at the historical data with regard to the ITR filings would suffice to show that, notwithstanding the teething issues, the e-filing process has been largely smooth.

No of ITRs filed
 

ITRs filed for AY 20-21 - 6.97 crore (up to 31-05-2021)

ITRs filed for AY 21-22 (till 16-1-22) - 6.03 crore*

(*ROI for AY 21-22 includes 2.95 crore ITR-1, 55.51 lakh ITR-2, 75.77 lakh ITR-3, 1.63 crore ITR-4, 9.26 lakh ITR-5, 3.57 lakh ITR-6 and 1.01 lakh ITR-7.)
 

No of Forms filed
 

Data with regard to filing of Forms is as below:

Forms 3CB-3CD – 11.08 lakh as on 15-1-22 against 29.04 lakh for FY 20-21 (by the last due date)

Forms 3CA-3CD ­– 1.25 lakh as on 15-1-22 against 3.34 lakh for FY 20-21

Form 10B – 73,708 as on 15-1-22 against 1.77 lakh for FY 20-21

Implementation of the Faceless Regime: The article’s observations with regard to the functioning of the Faceless Assessment Scheme are ill-founded. Before addressing the article’s claim that the scheme was not properly thought through, a reference to the data with regard to faceless assessment would be in order. As of December 28, 2021, peer-reviewed assessment orders have been passed in 2,09,235 cases. It is pertinent to note that there was no physical interface between the ITD and taxpayers. The faceless scheme in India draws upon the best practices of UK HRMC and Australian ATO, and attempts to configure the twin aspects of incisive data verification through technology and ensuring taxpayers’ convenience.

First phase of Faceless Scheme was initiated on a pilot scale in September 2019 in 8 centres with an idea to scale it up later with an effective back office, e-verification and legal research units. Pan-India coverage August 2020 brought with it various functions involved in a scrutiny case under one structure: Assessment unit, technical unit, verification unit and review unit, each independent of the other, and each one leveraging on the technical inputs of the others. While fair criticism based on data would be welcome, hearsay and anecdotal/ anonymous third-party impressions would not evolve ideas for improvement to the scheme. 

The writer is Commissioner of Income Tax (Media & Technical Policy) Official Spokesperson, CBDT

(Edited Excerpts)