Filing of income tax return for assessment year 2018-19 has so far risen 50 per cent since last year and the number corporate taxpayers have gone to 8 lakh from 7 lakh last year which is the effect of demonetisation. This strategic move has really helped in widening and deepening of tax base. With the increase in number of assessees, the ITR E-filing is now set to get an additional technology boost as the entries in the forms would be pre-filled by verifying the IT information already filed with the department such as personal details, information from 26 AS Statement etc. and if required, necessary changes could be made therein.
With this, e-filing of ITR would be greatly technology-driven and a lot simpler thereby saving time and money. This would enable the processing of return forms in a very expedited manner. The new pre-filled e-ITR forms could also potentially result in an increase in the number of people using the online interface for filing income tax returns. Hence, it only becomes natural for income tax assessees to wonder if the physical form of ITR filing would be done away with completely.
The assessees will be at an advantage as numerous entries from the information already available with the Department will not have to be filled up again and there would be lesser probability of errors or the assessee falling under the scrutiny assessment. Only under exceptional circumstances would a person need to visit the I-T office which would in turn reduce red tapism.
Today, there are software companies which provide reliable and cost-effective Software Solutions to Tax Professionals and SMEs all over the nation. They are engaged in development of various professional software required by Chartered Accountants, Tax Practitioners and Corporates. There are numerous users in India who have made their lives easy by resorting to such automated software products.
There are many such software products which help the taxpayers or their authorised representatives to fill most of the information of the ITRs online with just a few clicks. Prefilling of information from 26AS Statement is one such feature that is embedded in such software products. However, these software products are one stop solution and the features in these are much more than what the IT Department is planning to bring in initially. These kinds of features become very helpful for assessees having too many entries in their 26AS Statement.
In all, this is just a start and the IT Department may find more such time-saving methods in the future which could prove to be a threat to such software products and software companies. Of course, if the IT Department works towards implementation of other such automisaton features, that could be a curse to the software products which provide automated calculation and prefill features. Moreover, if the ITRs can be moulded in such a way that they include features which have not yet been embedded in the existing software products, the use of such software products could fall drastically.
Reach us at https://taxmantra.com/business-maintenance/ or Call/WA us at +91-9230033070 for any support/query/feedback.