Mains Paper 3: Economy | Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.
From UPSC perspective, the following things are important:
Prelims level: CPC-ITR 2.0
Mains level: IT returns facilitation through technology measures
- The Union Cabinet has approved corpus sum for integrated e-filing and centralised processing centre-2.0, a Project-of the Income Tax Department.
- The broad objectives of the project include a faster and accurate outcome for the taxpayer, first-time-right approach, enhancing the user experience at all stages, and improving taxpayer awareness and education through continuous engagement.
- It various functionalities such as pre-filling of ITR and acceptance by taxpayer as a means to improve accuracy and to reduce refund/processing turnaround time drastically.
- The decision will ensure horizontal equity by processing returns filed by all categories of taxpayers across the country in a consistent, uniform, rule-driven, identity blind manner.
- This will assure fairness in tax treatment to every taxpayer irrespective of their status.
Utility of the System
- The proposal ensures the continuation of the IT Department’s goal towards business transformation through technology.
- The E-filing and CPC projects have enabled end to end automation of all processes within the Department using various innovative methods to provide taxpayer services and to promote voluntary compliance.
- At present, it takes around 63 days to deal with income tax return process but this will be completed just in one day after the success of the ‘integration project’.
- Through digital media platform, we can provide rapid facilities to taxpayers, be it real-time processing of income tax returns, ease in filing accurate returns, resolve grievances of taxpayers and spread awareness.