The president of the Institute of Chartered Accountants of India, T.N. Manoharan, has sent a mail informing CAs that the due date for corporate e-Filing has been extended, as a result of the Institute's efforts.
`What is e-Filing of Returns?' Thus reads a question in the FAQ on http://incometaxindiaefiling.gov.in, a site that has been set up `as part of the e-governance action plan of the Income Tax Department'. Interestingly, Web-enabled services, apart from e-Filing of tax returns are PAN (permanent account number) enquiry, form download, tax challans with pre-printed PAN, and tracking of refund status.
Filing of income-tax (IT) returns is a legal obligation of every person whose total income for the previous year has exceeded the maximum amount that is not chargeable for IT under the provisions of the Income-Tax Act, 1961, cautions the site. The "IT Department has introduced a convenient way to file these returns online using Internet. The process of electronically filing IT returns is known as e-Filing of returns," explains the FAQ. "It is mandatory for the corporate assessess to file e-returns with effect from July 24, 2006." Only there seem to be many inconveniences in this `convenient' system.
In the face of widespread grievances with the scheme, the extension of time for filing by a month is only a short-term relief, says Sriram Seshadri, a Chennai-based CA. "It is not advisable to suddenly thrust a whole new regime change, with under-prepared software, and lack of infrastructural facilities across the country... A striking manifestation of how far-removed the administration is from the ground realities," he says.
N. Udayasimha mails in from Bangalore. "It appears that the taxman has embarked on this ambitious programme prematurely." Why does he say so? "All assessees and their auditors are facing various problems. Also, the facility provided at the Department's Web site is not user friendly. It appears that the e-Filing program does not match with program available at the Department servers."
He lists various difficulties, as follows:
The return form does not speak about the code to be given for the type of business of the company.
Codes given in the return form are at times totally different from the ones required at the time of uploading the returns.
Tax deduction certificates need to be entered individually, and not as consolidated amounts. Details required are of the Area, Officer and Range in which the tax deductor is being assessed to tax. A hectic task, especially when the certificates are innumerable, as in case of contractors. It is both time consuming and a mere data entry exercise for the assessee.
Udayasimha points out that nowhere on the Web site or in any other place has it been stated that an additional software needs to be bought from one `Mytaxassistant.com'. "These people are charging Rs 250 (a scratch card has to be bought and the PIN has to be registered with them). There is only one person selling the cards and he does not have cards of value Rs 250. He says you buy Rs 1000 cards. He also says, that he will charge Rs 1,000 for validating one IT return. Even after buying the scratch card, access is not immediate."
The Department is asking corporate assessees to file electronically, when the program has not been tested, frets the letter-writer. "Many corporates would have invested several lakhs of rupees for computers and other software, but they are now forced to go to some person to buy a scratch card, without which all their efforts would get wasted. With problems galore and bugs in the system, it is not proper for the IT Department to force corporate assessees to adhere to the time schedule," concludes Udayasimha.
The Madras Chamber of Commerce and Industry has listed many `issues in e-Filing'. It speaks of `several startling errors in the schema of the files'. Almost all leading companies, with well-qualified professionals employed with them, have been struggling to file the returns, rues the Chamber. "All other work has come to a standstill and their endeavour is only to file the returns."
On digital signature, too, there appears to be `enormous confusion', according to the Chamber. "While the FAQ released by the service provider states that the digital signature used for MCA21 (return filing with the Registrar of Companies) could be used, it is not practically possible." Why so? Because, "for IT filing, the digital signature should sit on the Internet browser, and it is not possible to transfer this signature from the pen drive to the browser."
The Chamber draws attention to a few instances of procedure going against the law. "While the law prohibits the set off of brought forward long-term capital loss against the short-term capital gain, the form permits it. It is designed to set off automatically. This will be an illegal claim, if permitted." Another such example is about the form `computing surcharge and education cess for foreign companies automatically,' which is not sanctioned by law, urges the Chamber's letter.
Cell-width is not adequate, mentions yet another complaint. Nor is there the facility to increase the width. "As a result, if data entry errors are to be checked and corrected, the printout is small and not legible in certain cases. The filled up form is not readable." Frighteningly, the machine is `asking for some password', even when the user is clueless as to what password is being referred to! "It is almost impossible to decode the error messages," laments the industry body. "It (the machine) gives some line number reference, which cannot be traced easily. For instance - it states error in line number 691. The assessees are not able to trace this line at all."
Do I hear you screaming, `Eeeeek!'
Autor(en)/Author(s): D. Murali
Quelle/Source: The Hindu Business Line, 30.10.2006
