On July 29, 2024, the Lok Sabha witnessed a significant query regarding technical issues within the IT portal, specifically concerning Form 16 certificates and the TRACES portal. This query, raised by Shri Selvaganapathi T.M., highlighted several concerns about processing delays, technical glitches, and challenges related to the PAN-Aadhaar link. The Minister of State in the Ministry of Finance, Shri Pankaj Chaudhary, responded to these concerns, clarifying the government’s position and actions taken.
Detailed Analysis
1. Processing Delays and Technical Glitches:
Shri Selvaganapathi T.M. questioned whether many employers were struggling with issuing Form 16 certificates due to processing delays and technical glitches in the IT portal, exacerbated by new PAN-Aadhaar link norms. However, the response from Shri Pankaj Chaudhary clarified that such issues were not prevalent. The government has not acknowledged widespread problems related to Form 16 or delays attributed to technical glitches as reported by some employers.
2. Previous Year’s Issues:
The query also addressed whether similar glitches were observed in the previous year. Again, the response was negative, with the government stating no significant issues in the past year that would align with the described problems. This indicates that if there were issues, they were not substantial enough to be formally acknowledged or documented in the recent past.
3. Steps Taken:
Given that the government did not recognize any current or past issues with the IT portal, questions regarding the steps taken to address such problems were rendered moot. This absence of acknowledgment means there are no documented corrective actions or improvements related to the concerns raised.
4. TRACES Portal Processing Times:
The Lok Sabha query also inquired about the processing times of the TRACES portal, which is crucial for tax return processing. The Minister clarified that there have been no delays exceeding 30-35 days, thus disputing claims of excessive processing times. This reassurance suggests that the TRACES portal is functioning within expected timeframes.
5. Tax Demands and Inoperative PANs:
An important aspect of the query was whether tax demands were raised in cases of inoperative PANs or when salaries were below the threshold limit. The response affirmed that tax demands are indeed raised for inoperative PANs as per Section 206AA of the Income-tax Act, 1961, and relevant CBDT Circulars. However, the system does not impose tax demands on salaries that fall below the established threshold, providing clarity on this issue.
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GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
LOK SABHA
UNSTARRED QUESTION NO.1004
TO BE ANSWERED ON MONDAY, THE 29th JULY, 2024 SHRAVAN 7, 1946 (SAKA)
‘TECHNICAL GLITCHES IN THE IT PORTAL’
- SHRI SELVAGANAPATHI T.M.:
Will the Minister of FINANCE be pleased to state:
(a) whether it is a fact that many employers are not able to issue Form 16 certificates to staff due to processing delays and technical glitches in the IT portal as well as challenges arising from new norms related to the PAN-Aadhaar link, if so, the details thereof;
(b) whether it is also a fact that similar glitches in the IT portal were noticed during last year too;
(c) if so, the details thereof along with the steps taken in this regard;
(d) whether it is also true that the TRACES portal is taking more than 30-35 days to process returns, if so, the details thereof; and
(e) whether it is true that in case where PANs are inoperative or the salaries are below the threshold limit, the system is raising Tax demand towards employers, if so, the details thereof?
ANSWER
MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI PANKAJ CHAUDHARY)
(a) No, Sir.
(b) No, Sir.
(c) In view of answer to (a) & (b), the question does not arise.
(d) No, Sir.
(e) In case of inoperative PANs, tax demands are being raised as per the provisions of section 206AA of the Income-tax Act, 1961 and CBDT Circular No. 3 of 2023 dated 28.03.2023 and Circular No. 6/2024 dated 23.04.2024. In case where salary is below threshold limit, no tax demands are being raised.
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