The Income Tax department’s tax fair, which starts on Monday, is expected to see 50,000 more taxpayers filing their returns this year. Last year about 4.5 lakh people filed their returns in the tax fair organised at Palace Grounds. This year, the department is expecting 50,000 more footfalls totaling more than 5 lakh tax payers at the fair. Many taxpayers faced problems while filing returns online last year.
“Many acknowledgements that the tax payers had to send by general post to the central processing centre at Electronic City didn’t reach the destination on time,” said a source in the department who didn’t want to be named as he was not authorised to speak to the media.
“They couldn’t send it by speed post because of some rules,” he said.
Moreover, many IT and BT companies that laid off people last year are recruiting again. Even pay packages have improved. The Sixth Pay Commission has also increased salaries of government employees.
“For getting bank loans, people have to show their I-T returns for the last couple of years,” he said. “This is also forcing many to physically come and file returns,” he added.
The CPC, which handles online filing of returns, provides an acknowledgment, but that does not bear the I-T department’s logo, which many consulates ask for before giving Visa.
Though these are minor factors, but it will certainly divert many salaried people to file returns physically,” said the source. The government has increased the time to 120 days to sent the acknowledgment to CPC.