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 :-
Details of personnel or Household expenses
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.
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.
ADVANTAGES OF THE SYSTEM:
- Corruption in the taxation system can be reduced.
- 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.
- Filling of replies by the assessee in electronic format is quite easy for the assessees.
- Huge numbers of cases can be decided in less number of days due to the above system.
CA GAURAV DHALL
215-R, MODEL TOWN,