New Income Tax Portal en route? Here’s What You can Expect

An internal circular dated October 8, 2024, revealed plans to replace the existing Integrated e-filing and Centralised Processing Centre
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The Income Tax Department of India is preparing to revamp its e-filing ITR portal through Project IEC 3.0, aiming to provide taxpayers with a more user-friendly and secure platform.

An internal circular dated October 8, 2024, reveals plans to replace the existing Integrated e-filing and Centralised Processing Centre ( IEC ) 2.0 with a significantly improved system.

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“The operations phase of the existing Integrated e-filing and Centralised Processing Centre ( IEC ) 2.0 is coming to an end, and the process of bringing in a new Project, Project IEC 3.0, has already been initiated,” the circular stated.

 Key Features of Project IEC 3.0

– Enhanced User Experience: The new portal will continue offering services from IEC 2.0 while introducing improvements for a secure and user-friendly environment.

Stakeholder Feedback: The department emphasizes collecting feedback from taxpayers and other stakeholders to ensure the new system meets user needs.

– Technological Advancements: Incorporation of cutting-edge information technology to expedite ITR processing and reduce grievances.

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Stakeholder Consultations

To make Project IEC 3.0 more taxpayer-friendly, the department plans to:

Form Committees: Within a week of the October 8 order, committees chaired by officers of at least CIT rank will be established.

Gather Suggestions: These committees will collect opinions, views, and suggestions from department officers, tax professionals, taxpayers, and other stakeholders.

Submit Findings: The committees are instructed to submit their findings via email by November 30, 2024.

“It is considered desirable to hold wide consultations with various Project IEC users/stakeholders and obtain their opinions, views, and suggestions regarding the good features, deficiencies of the existing Project IEC 2.0, as well as tangible improvements for IEC 3.0,” the circular notes.

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Importance of the IEC Project

The IEC project is crucial for:

– E-Filing Platform: Enabling taxpayers to file their Income Tax Returns ( ITRs ) electronically and access various services.

– Centralised Processing Centre ( CPC ): Responsible for processing submitted ITRs through the e-filing portal and the Back-Office Portal – Used by field officers to access taxpayer filing and processing data.

Meanwhile, it is important to remember the need for Stringent Data Quality Checks: To address previous issues like downloading past ITR forms, accessing Form 26AS, server failures, and challan payment issues and enhanced reliability for Improving overall system reliability for both taxpayers and professionals.

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Anticipated Benefits for Taxpayers

Faster ITR Processing: Accelerated processing times due to advanced technology.

Quicker Refunds: Potential for faster issuance of refunds to taxpayers.

Reduced Grievances: Fewer technical issues and improved user support.

Improved Accessibility: Easier access to important documents and forms.

The introduction of Project IEC 3.0 marks a significant step towards modernising India’s tax infrastructure.

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