E-filing of Income Tax in India: An Indication

Abstract

E-filing is the influential instrument that can transport noteworthy social and economic benefits. It can provide a strong support to the government for good governance and large population to pay their liabilities to the government successfully. With the advancement of technology and use of internet in financial and fiscal affairs globally has necessitated the e-filing of Income Tax in India also. Considering its benefits and urgency, the e-filing has become mandatory for major mass of tax payers in India. Present focuses on the reasons for making the e-filing mandatory for a selected class of taxpayers. The paper further takes into consideration the benefits accruing from e- filing along with some restricted access that encounter in the process of such transformation. The role of government and intermediaries such as Tax Return Preparer Scheme in this direction and offers some suggestions to overcome the problems for smooth working of e-filing in India. The paper concludes that the major challenge ahead is regarding system security, mass awareness is needed in order to make e-filing more successful, Tax Return Preparer Scheme have to play a very catalytic role and the Government would have more revenue with global integration through technological advancement of e-filing. Present study is beneficial for tax authorities, policy makers, present and prospective tax payers, e-filing intermediaries, financial software engineers and academicians as the paper attempts to focus on the crucial aspects of e-filing in India. E-filing has given ease of use to the income tax payers yet they are facing various problems like peak rush, difficulties in operations in this process.