The new portal is designed to retain the key services of IEC 2.0, which include e-filing of Income Tax Returns (ITR), submission of statutory forms, and other services.
The Income Tax Department is set to revamp its e-filing portal with the upcoming launch of Project IEC 3.0, aimed at enhancing the user experience for taxpayers. According to an internal circular dated October 8, 2024, Project IEC 3.0 will replace the existing Integrated e-filing and Centralised Processing Centre (IEC) 2.0, which is nearing the end of its operational phase.
How Project IEC 3.0 Can Benefit Taxpayers
The new portal is designed to retain the key services of IEC 2.0, which include e-filing of Income Tax Returns (ITR), submission of statutory forms, and other services. A crucial component of the project is the Centralised Processing Centre (CPC), responsible for processing submitted ITRs via the e-filing platform and the ITBA (Income Tax Business Application).
Additionally, Project IEC 3.0 is expected to introduce a more secure and user-friendly interface for taxpayers. It will provide an enhanced Back-Office (BO) portal for field officers to access taxpayer filings and processing data more efficiently.
Public Involvement in Project IEC 3.0 Development
To ensure the new system meets the needs of taxpayers, the tax department has decided to gather public feedback. The department is seeking suggestions from ITR portal users and other stakeholders to help shape Project IEC 3.0. The circular encourages consultation with stakeholders to assess the strengths and weaknesses of IEC 2.0 and identify areas for improvement in the new system.
A committee, led by an officer not below the rank of Commissioner of Income Tax (CIT), will be formed within a week of the circular’s issuance to collect feedback. This committee is expected to gather views from tax professionals, taxpayers, and other stakeholders, with responses due by November 30, 2024.
Expectations from Project IEC 3.0
Chartered accountants are optimistic about the potential of Project IEC 3.0. Ashish Niraj, a Partner at A S N & Company, believes that faster processing of ITRs will lead to quicker refunds for taxpayers. He also highlights the need for improved data quality checks, citing previous issues such as challenges in downloading last year’s filed ITRs, 26AS forms, and server failures during payments.
Hardik Kakadiya, President of the Chartered Accountants Association, Surat (CAAS), stresses the importance of an upgraded system that can handle the growing taxpayer base without glitches. He points out that major e-commerce platforms successfully handle high traffic during festive sales, yet the ITR e-filing portal often crashes during peak filing periods. A writ filed by the CAAS regarding these glitches is pending before the Gujarat High Court.
If the new system is upgraded on time, it could prevent not only taxpayer hardships but also reduce the number of litigations stemming from technical issues.
In summary, Project IEC 3.0 promises to deliver a more efficient, user-friendly platform for taxpayers, while addressing the technical shortcomings of its predecessor. By seeking public input and leveraging advanced technology, the Income Tax Department aims to improve the overall e-filing experience.
Also Read: Frequently Asked Questions (FAQs) on Direct Tax Vivad Se Vishwas Scheme, 2024
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