If we talk about 1970s ,80s or even 90s, than people at that time could not even have imagined about e-filing of their income tax return. With revolutionary changes in computer technology now efiling of various returns is very easy. In efiling Assessee receive acknowledgement receipt online. In addition to that department has also started giving online Intimations U/s 143(1) and demands notice U/s. 245. Assessee can also view his Income Tax Refund Status online.

E-filing of Income Tax Returns has curbed few malpractices. Some of which are as follows:-

1. like people cannot change their paper returns in the offices,

2. People cannot take receipts of Income tax returns without filing income tax return or

3. They cannot submit it late (with receipt of back date). There are many examples of such malpractices and these can be become impossible.

Now I want to share next steps that should be taken to improve this taxation system. Like scrutiny assessment and best judgment assessment should be done online. This is very much possible and may remove corruption to some extent. I can explain how it is possible. Like when a person files the return online than if his case selected for scrutiny assessment according to CBDT norms, than Department (in Bangalore) should issue notices online to email id of assessee with the requirements like :-

Balance sheet

P&L account

Details of personnel or Household expenses

Properties owned

Details of Foreign Tours

Details of Loans & Advances & other things etc. per case requirements

Concerned Assessing officer in Bangalore to which the case may be referred can call for any relevant document or evidence as per case or return filed. All required documents by the assessing officer should be electronically filed by the assessee at the official email id of Income tax departments   (in Bangalore) . Than Department (in Bangalore) would distributes the replies by the assessee to the concerned assessing officer who is assessing the case. If assessing officer wants hard copy of any document, than assessee will post it to the department.

Assessee should not know the name and personnel details of assessing officer who is assessing the case. All the assessing officers who are doing job of assessments should be concentrated at one place Bangalore.  Every document, statement or reply which AO wants, Assessee must give it in Word format or in PDF file or Scanned copy. Every activity of the assessing officer can be easily monitored by the department as all the information demanded by the assessing officer will be through electronic medium at the official email id of the department. Documents once submitted to departments email account is a permanent record with the department and the chance of malpractices like manipulation of documents deposited by the assessee in physical form whenever he likes will not be possible due to replacement of manual submission with electronic submission.

There should not be any direct contact between Assessing officer and Assessee, so that there should not be any corruption and leakage or evasion of revenue. Like in MCA site, every document of the company is submitted online and there is hardly any manual filing on it. Registrar view documents of every company online and analyse or authenticate online. Even when we float a company we need not file even a single document manually.

                                      DIAGRAMATIC VIEW:


Survey, Search & Seizure:

According to me, Even Survey’s should be done by team from Bangalore. Survey’s must be based on confirm information and it should not be biased. Like no assessing officer can do survey, search etc. with vindictive intention. With centralization of all the officers, these types of practices are curbed.

I don’t know when the above will take place, but I wish the same the same to happen soon.


  1. Corruption in the taxation system can be reduced.
  2. Procedure of Sending notices by the AO can be fast & there is no Chance of non receipt of notice by the assessee because it would be sent on his email id. Also there would be no chance for the non acceptance of notice by the assessee.
  3. Filling of replies by the assessee in electronic format is quite easy for the assessees.
  4. Huge numbers of cases can be decided in less number of days due to the above system.




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  1. Geetha H N says:

    Dear All,

    I have received the intimation with payment of 150000/- demand and CPC have not taken self asst challan which was correctly filled in ITR and reflected in 26 AS.
    When I spoke to CPC for what reason and where I have to rectify, they are not ready to agree that it is reflecting in 26 AS and if I want I have to file rectification without any mistake.
    The new system should will curb the bribe and save time I agree. But the people who are getting scrutiny is less. But this CPC has made all CA’s life miserable by sending the intimations without reconciliation.
    The system will be helpful if the back office is strong and properly working.
    Regarding MCA, they will clear all files filed in Comany secretary ID in a preferencial order and there we can visit and get the files cleared (??????)

  2. CA GAURAV DHALL says:

    Thanks Amit Bajaj ji, Mudit Aggarwal ji, ManjuNath ji, Hari Jajal ji & Sandeep Kanoi ji for supporting this thought and giving valuable suggestions. With your suggestions it will take a feasible form.

  3. MUDIT AGRAWAL says:

    Dear Gaurav Dhall ji and other professionals,

    Well this is a very enthusiastic and possible way that u have given. Well I hope the department will also look at ur view. Furthering ur view, I would also like to give one very important suggesstion w.r.t. TDS.

    Today almost every assessee whose TDS is deducted is facing the serious problems of either not getting refund or receiving demand from the department. And the main reason behind this is NON QUOTING OF CORRECT PAN by deductors in their TDS returns. And the Government Departments and their Subsidiaries are the major defaulter in this range.

    I give following suggestions in this respect:

    1. Delete the role of TFCs. i.e. TDS returns must be allowed to be filed just like ITRs directly on the Income Tax website.

    2. TDS returns must be requird to be filed “ANNUALLY” just like ITRs AND “NOT QUARTERLY”.

    3. It must be made mandatory for all the “TDS softwares” like Computds etc. the PAN which does not exist will not be accepted and when we enter PAN, name of assessee must automatically come in the deductee name column in the return (just like in the case of e payment of challans where wrong PAN cannot be entered)

    4. The exemption limit of TDS must be revolutionary increased like it must be at least 25000 in case of TDS on interest and Rs. 50000 in case of TDS on Commission etc.

    With Regards,

    Mudit Agrawal
    (B.Com., M.B.A., LL.B)
    Mob: 9897765958

  4. CA MANJUNATH B S says:

    Dear Sir,

    It is a good idea and bold idea. It is definetly possible. Over a period it stabilises, as the now e filing of ITRs has been found be user firendly – atleast to the professional.

    Some times, it is essential for personal appearance & oral submissions & explanation and all that can be in selected few cases; majority of the cases could be resolved without personal interface & connected problems.

    Look forward for an early initiation at the Dept.


  5. Hari Jajal says:

    Thank you sir for your Idea,
    currently, CPC, is doing some major mistakes, like when an Assessee claims for TDS in E-ITR, and the amount of TDS is also shown in ITR-V, the same is also matching in 26AS, but due to computerised system the amount of TDS claim is not granted, they should check Form 26AS, but not checking and instead of refund, they are demanding.
    This thing should be changed first.

  6. CA. GAURAV DHALL says:

    My Dear Professional Brothers, I know that there can be many hurdles. I appreciate all of you that you are pointing out such things, but i expect support also with criticism. I always welcome and appreciate your thoughts, but please give your suggestions also to overcome all the hindrances and hurdles under this system. This is just a suggestion, but we can do debate and discussion to make it possible.I know it will be implemented with the passage of time.


    I feel that refund process is still slow. I have not received any information on refund for ITR filed last year (manually) & ITR filed online this year though as per various news, the refund should be made available with in 4 months of filing ITR (online)? No information on when should the refund be available for ITR filed manually?

    Best regards, RAKESH

  8. Amit Bajaj Advocate says:

    Good thought. But how the statements of witnesses will be recorded? Summons u/s 131 are sometimes required to be issued by AO to creditors. Online scrutiny assessment may have many hurdles

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September 2021