Reforms of efiling in india final print

A REPORT ON
“Reforms of e-Filing in India”
BY
Oindrilla Dutta Roy
PRN No.: 15235
Batch: 2015-2017
Under the guidance of
Prof. Dr. Jaideep Jadhav
A report submitted in partial fulfillment of
the requirements of
Post Graduate Diploma in Management - Finance
BATCH 2015-2017
MIT PUNE’s
MIT SCHOOL OF TELECOM MANAGEMENT (MITSOT), PUNE

DECLARATION
I Ms. Oindrilla Dutta Roy hereby declare that this Summer Internship Program (SIP)
on “Reforms of e-Filing in India” is the record of authentic work carried out by
me during the period from 30th june 2016 to 85th
august 2016 in the head office of
H&R BLOCK, Pune and has not been submitted earlier to any University or Institute
for the award of any degree / diploma etc.
I further declare that all the fact and figures used in this project report are my own
findings . I also confirm that data and facts used in this report are only for academic
purpose it might not interest for the other purposes.
NAME OF THE STUDENT: - Ms. Oindrilla Dutta Roy
PRN: - 15235
DATE: -
PLACE: - Pune

CERTIFICATE
This is to certify that Ms. Oindrilla Dutta RoyofMIT Pune’s, MIT School of Telecom
Management (MITSOT) has successfully completed the SIP work titled “Reforms of
e-Filing in India” in partial fulfillment of requirement for the completion of PGDM
course as prescribed by the MITSOT.
This SIP report is the record of authentic work carried out by her during the last
semester. She has worked under my guidance.
Prof. Dr. Jaideep Jadhav
Faculty Guide
MITSOT
Dr. Milind Pande
Project Director
MITSOT

ACKNOWLEDGEMENT
At this juncture I feel deeply honored in expressing my special gratitude towards my
company guide Ms. Shweta Rabade. I am highly indebted for her valuable guidance
and constant supervision and for all the valuable inputs he has provided me with for
giving this project a weight and a strong base.
I would also like to thank my faculty mentor Prof. Dr. Jaideep Jadhav for his
inspiration, immense support and guidance which has enabled me to express my
thoughts and views in words and for the amplification to face real corporate
challenges.
I would also thank all the faculty members of MIT School of Telecom Management,
Pune for their critical advice and guidance without which this project would have been
possible.
Last but not the least I place a deep sense of gratitude and heartfelt love for parents
and friends who have been a constant source of inspiration during the preparation of
this project.

CHAPTER 1:- INTRODUCTION
Abstract:- e-Governance is the application of data and
communication technology for delivering services to the public in a
more well-organized and effective manner such that exchange of
information, government to customer(g2c) , government to
business(g2b) and government to government transactions happens
on a strong and effective base with marginal errors and in a more
apparent way.
The Income Tax Department has launched a system for centralized
processing of returns and one well-known type of e - government is
the introduction of the e-filing system for income tax. The department
wanted a system that would make the process of filing of Income Tax
Returns (ITR s) effortless for tax payer as well as trim down the time
required for data entry at their end on receipt of ITR s. The biggest
obstacle to the right operating of the IT department is the critical
shortage of officers and staff. It is commonly accepted that a
considerable portion of potential tax revenue is not accumulated
because of poor tax administration and high tax evasion in India. The e-
filing is the latest effectual method of filing income tax return through
online and make e-payment tax. Regardless of many advantages linked
with e-filing, tax authorities face some major challenges towards the
execution of the e-filing system. One such challenge is the public
opinion of the e-filing system. After consuming an e-service on the
Internet, the public might find that whether the e-service system is
easy and useful or otherwise.

Study shows that countries like uk, usa, sinagpore has resorted to
efiling their tax return and have reaped the benefits out of it and has
also tasted the fruits of success. They are striving more for betterment
and improvement for providing uninterrupted and smooth services.
NEED OF THE STUDY:-
As because Income tax is major source of revenue, which is utilized for
the social and economic development of the country it has always been
a major concern for the government to encourage more taxpayers to
file their tax return as because only 3% of the total population in india
files their tax return. It also plays a major role in removing the
inequalities between the rich and poor in terms of wealth distribution
and it also addresses the major problem of unemployment which is a
major concern for a developing country like india. To encourage more
taxpayers to pay their taxes duly, efiling was introduced which helped
them to file their tax return electronically.
Though electronically filing your tax return has given a great relief to
the tax payers and the percentage has also increased, still there are a
percentage of tax payers who prefer to file their tax returns manually.
This project focuses on the benefits, issues faced by tax payers while
electronically filing their tax return, and what changes or reforms can
be made to make electronically filing your tax return experience
delightful.

OBJECTIVES OF THE STUDY:-
To study the scope of efiling in Indian context, the growth prosperity
and its usage and simplicity effects on human day to day life.
Also to study the reasons behind why the tax filers are not yet opting
for efiling of their tax returns.
To measure the level of fulfillment of efiling their tax return.
To measure the problems the respondents face while efiling their tax
returns.
To provide suggestions to make the E-filing pattern of salaried
employees in a more attractive way and help efiling function
smoothly.
SAMPLE OF THE STUDY:-
To meet the objectives I have surveyed on a sample of 30 respondents.
The data collected has been analyzed using graphs, tables, pie charts
etc.
RESEARCH METHODOLOGY:-
I have carried out a research on 30 respondents which were divided in
3 age groups:
Youth(>35)
Middle age(>45)

Old age(<=60)
These three groups were selected to learn the impact of efiling
acceptance on them, on what basis they are using it, to what extent
they are satisfied with the service and what reforms they are expecting
out of it for a better efiling experience.
The questionnaires were filled by face to face interaction and some
were through telephone.
*all the respondents file their income tax electronically.
LIMITATIONS OF THE STUDY:-
The study has been conducted on only 30 respondents.
The answers provided by the respondents were prompt
answers(not much brain storming was done)
The study restricts only to individual tax payers(salaried people)
Time provided to complete the project was limited
SCOPE:-
This project studies the tax planning for individuals assessed to
Income Tax.
The study narrates to non-specific and generalized tax
planning, eliminating the need of sample/population analysis.

Basic methodology applied in this study is subjected to various
pros & cons, and diverse insurance plans at different income
levels of individual assesses.
This study covers individual income tax assesses only and does
not hold good for corporate taxpayers.

BACKGROUND:-
It has been found that no. of income tax payers has more than
doubled in no. within a period of one decade, from 12.5 million in
1996-97 to 31.9 million in 2006-2007.
Primarily manual counters of the ITD were used for filing their
tax returns manually, till the time came when income tax returns
could also be filed electronically. Efiling of income tax returns
increased much popularity worldwide due to its easy
computation of the details, benefits associated with it equally for
the tax payer and the tax collector.
Mostly it was found that out of the total population a very meager
percentage of individuals filed their tax returns. In India we face a
major problem of tax evasion where individuals abstain
themselves from paying their taxes on the income earned. Thus
there was a dire need of an efficient system for collecting the
taxes as well as handling the wide range of queries related to
income tax and its computation. Website was launched in the
year 2000 and the main motto behind its launch was to provide
the tax payers with one stop solution with all the related queries
they had.
This permits the tax payers to file their taxes electronically”
anywhere anytime”.
This made their work much easier and convenient thus giving the
government a hope that they will see the percentage of income tax
filers rising and the issue of tax evasion will gradually decline in the
near future.

Out of the total population only 2.84% of the population files taxes. The
remaining population do not file taxes on the income earned annually.
Measures have been taken by the government to boost up the
percentage of tax filing in India and increase the revenue of the
government which in turn is used by the government for service
providing.
FILING STATISTIC IN INDIA
filers
non filers

E-filingstatisticsinindia
As per the graph the highest no. of filings is filed from Maharashtra
followed by Gujarat, Tamil Nadu, Uttar Pradesh, West Bengal , Karnataka
and finally Delhi the capital of India.
0
2
4
6
8
10
12
maharashtra gujrat tamil nadu uttar pradesh west bengal karnataka delhi

CHAPTER 2: OVERVIEW ON
INCOME TAX
HISTORY OF INCOME TAX:-
The notion of income tax was first introduced by the British during
their colonial rule in India in the year 1860 to meet their expenses and
cover up the financial difficulties as a temporary measure.

Taking it further it became permanent after the income tax act was
passed in the year 1886.
After some amendments made to it, it was again passes in the year
1918.
This act underwent many changes, amendments and thus making it
confusing, cumbersome and complicated to the general public. In order
to make it more convenient and simplify the issues “Direct Taxation
Administration Committee” was set up, with an expectation that it
might reduce tax evasion, once its simplified and the inconveniences
are fixed. On their recommendation on the year 1961 income tax act
was passed and it came into force on 1st April and it is applicable to the
whole of India now.
With the change in environmental situations, these tax acts also did not
stay static, it was amended accordingly, keeping in beat with the
changing situations around us.
Definition of income: - income is any sum of money received by
an individual or a business firm in lieu of a service provided by them.
Most people earn their income through salary or wages.

An individual earns income through wages or by investing in financial
assets like stocks, bonds and real estate. In most of the countries,
income earned is taxed by the government before the individuals
receive it.
In case of a retired individual most of his earnings are through
investments in various schemes, pensions and social security.
In businesses incomes refers to company’s remaining revenues after
incurring all the expenses and taxes have been paid. It is also known as
“earnings”.
Most of the forms are subjected to taxation.
Income tax: - tax is levied on any income earned or incurred by an
individual or a business institution during a financial year.
As levied by the income tax department every individual or a business
firm earning an income is liable to file an income tax return to assess
the amount of tax that still required to be paid or if there is any case of
getting a refund.
Income tax is the key source of income for the government. Its utilized
by the government for funding its activities and to serve the public.
In india we follow a progressive income tax system where the tax rate
increases with the increase in the income of the individuals.
Most individuals don’t pay income tax on the overall income earned by
them in a financial year. There are series of deduction available to
them while computing the income tax return.

COMMON DEDUCTIONS:-
Some of the common deductions applicable to the salaried individuals
are:-
Deductions u/s 80C:-
 Employee provident fund
 Public provident fund
 Statutory provident fund
 Life insurance policy
 Children tuition fee
 House loan principal repayment
 National savings certificate
 Tax savings fixed deposits
Contribution to pension fund u/s 80CCC and 80CCD
Interest on savings account u/s 80TTA
Interest on home loan u/s 24
Investments made under an equity saving scheme
Payment of medical insurance premium and health check up
Deduction for disability
 80DD- Dependent’s disability
 80U- Self disability
Treatment of specified diseases u/s 80DDB
Interest on education loan u/s 80E
Donations amount u/s 80G, 80GGA,80GGB and 80GGC
Rent u/s 80G
The income tax department has issued various series of forms applicable
to different type of assesses.

ITR1:- applicable for assesses who has no income other than
salary/pension and interest. Also applicable for the individuals whose
agricultural income exceeds rs 50000 annually.
ITR2:- applicable for individuals who have income other than business
/ profession income
ITR3:- applicable for individuals who are a partner in a partnership
firm
ITR4:- valid for individuals who have income from
business/profession
ITR5: - applicable for a Firms, AOP, BOI, Local Authority
ITR6:- applicable for a company
ITR7:- applicable for a trust
ITR8:- applicable for filing only FBT return
In this report we will only discuss about ITR1, ITR2 and ITR2A as
these forms are applicable to salaried individuals. The remaining
are out of our scope.

CHAPTER 3:- EFILING
HISTORY OF EFILING IN INDIA:-
The governments around the world are increasing the use of
information communication technologies to Upgrade the delivery of
public services and the dissemination of public administration
information to the public.

The success of e-governance depends on the acceptance of the services
by the public and in what ways its focusing on usage simplicity and
how convenient is it to the general public.
In India e filing income tax was introduced in September 2004, usually
on a voluntary usage basis for all categories of income tax assesses.
Taking this into serious consideration this process was taken further
and from the assessment year 2007 to 2008 efiling of income tax was
made mandatory for all companies. From the year 2013 individuals
having an income of more than 10lakhs also had to efile their income
tax return as a compulsory option.
Electronic filing options include:-
(1) Online, self-prepared return, using a personal computer and tax
planning software, or
(2) Online filing of returns using a tax professional’s computer and tax
preparation software.
Various measures have been made by the Indian government over the
past few years to boost the tax payers to pay their taxes duly. Thus
simplifying the process of tax payment has been the top most agenda
in the e-governance list.
E filing is one of the most important and advanced e-governance
services. It helps the tax payers to compute their tax return and
conduct the transactions within a few mouse clicks.
Convenience itself is a sole driver for the success behind efiling in
India.

Efiling of tax returns offers the user with time flexibility and reduces
calculation error on the tax return form.
WHY FILING FOR RETURN OF INCOME?
Provisions are provided by the income tax department where an
individual is entitled for filing of return of income. Under this an
assessee proposes with all the details of his income earned all round
the year and the tax payable. The format for filing tax return are
prescribed by CBDT. Details of gross total income earned, total income
earned and tax deducted at source needs to be mentioned by the
individual. This will help him to get refund if he is entitled to.
According to the Act due dates are prescribed which states to be 31st
july of every financial year. It is mandatory for all the firms ,
individuals, companies to file their return before the due date failing to
which they will be entitled to pay a penalty.

Most of the sites are user friendly, thus easy to use for generating
returns. Individuals need to answer few simple and basic questions
before they start with the process of generating their returns. In case
of a salaried employee form 16 is required which will be issued by his
employer.
According to the income tax department disclosing all the active
bank accounts are compulsory. Thus an individual also needs to
provide all the bank statements, interest and tax-deduction at source
certificates and other financial details which are not disclosed to the
employer.
After it is efiled the individual receives an ITR-V in his personal mail
id. He needs to take a print out of the form and sent it to CPC
BANGALORE through speed post or e verify it through: -
 Adhar card
 Atm card

 Net banking
 Web site(if taxable income is less than 50000)
 D- mat account
WHAT IS EFILING?
Electronically filing the income tax return is termed as efiling.
For companies and firms, those who necessitate a statutory audit u/s
44ab, its mandatory on their part to submit their returns
electronically for fy2014-15.
Efiling can be done with or without digital signature.
Government has been striving to improve its services on efiling by
making it a huge success globally and attracting the tax papers to
reap the benefits of efiling tax returns. Government has made efiling
compulsory for a major chunk of tax payers considering its benefits.
PROSPECTS OF EFILING IN INDIA:-

In the year 2013 it was assumed that the income tax return
will sharply jump that particular year because it was made
mandatory to efile for the individuals having an income of
above 5lak from earlier of rs 10 lakh.
This was reform was made as because most of the tax payers come in
the income slab of Rs 5lakh to Rs 10lakh category. The income slab was
lowered as because it was assumed that it will give a boost to increase
the efile percentage.
According to vineet agarwal director of KPMG, he said that online filing
was popular and it will very soon engulf the tax payers with its
beneficial aspects as it reduces cost and time.
Government too benefits from this, as it takes less time, cost effective
and make processing faster.
The government has made electronic filing of income tax return
mandatory for the individuals whose taxable income exceeds rs
500000 from the financial year 2013.
In the financial year 2012 the mandate taxpayer’s income limit was rs
100000.
In the financial year 2012 nearly 50% of returns were filed
electronically. With the mandate taxable income being rs5 lakh from rs
10lakh, it was expected that the percentge will increase to 75%.
The penetration of efiling tax returns has been far more sharper in our
country compared to any other country, even like US.
The rising percentage of electronically filing gives a positive impact
that the efiling procedure is being accepted by the individuals and is
sure to become a huge success in the near future.

Government has put in enough efforts to make the process much
simpler and user friendly by including new features that includes e-
filing by:-
 e-mail
 automatic form 26AS matching
 automatic return preparation from digital brokerage statements
While e filing an individual can get it done through income tax website
or file through e-return intermediaries.
An individual filing through e-return intermediary is generally charged
a fee of rs 250 to 1000 depending on the kind of service provided to
them and on the complexity measure. Filing through government
website is free of cost and not charged in any case.
With a rise in GDP it is expected that the revenues from income tax will
rise sharply as the government is taking serious measures to tap the
tax evaders and there is a economic boost too.
IMPORTANT DOCUMENTS REQUIRED FOR ITR
EFILING:-
The important documents required to efiling income tax return are:-
Form 16: - this is issued to the employee to the employer , it contains
the tax deducted at source, income gained along with the deductions.
Form 16A:- this form also contains the tax deducted at source, but this
is used for TDS other than salary income. This is issued quarterly
unlike Form 16 which is issued annually.

Form 26AS:- this is issued by the income tax department. It shows all
the tax deducted or paid against the PAN of the tax payer. This form
can be retrieved through income tax efiling website.
According to the income tax department rules its mandatory to
disclose all the active bank accounts. Thus a taxpayer needs to have the
details of bank accounts and passport no. while filing his ITR.
Why its beneficial to file your tax return
electronically?
The main objective of the tax administration in developing countries is
to maximize the revenue collection by delivering enhanced and
updated services for customer satisfaction. The focus on efiling has
increased its popularity mainly because the tax administration works
on a menial budget, thus they are trying to provide quality services
within a limited budget by discovering the advantages of electronically
efiling.
There are many beneficiary effects of filing the tax returns:
Provides convenience: - efiling allows the tax payers to file their
tax returns at any point of time (day or night) as per their
preference.
Customer satisfaction: - faster process enables to customer to
realize that their return has been received, thus delighting the
customers.
Receiving returns faster:-efiling enables customers to receive
funds faster

Security issue and tax privacy:- the details keyed in by the
customer or the tax advisor is recorded safely, thereby
encouraging the tax payers to file electronically and since no
mails have to be sent for the tax return, its considered to e much
safer and a better option.
Provisions of user guide and online help assistance
Reduction on operating cost on the part of the tax
administration:- electronically filing reduces paper usage and
labour cost, as less staffs are required to manage the tax filing.
Manually filing tax returns requires the documents to be folded,
capture data manually , open returns etc
Quality data: filing electronically reduces the risk of error, which
in turn reduces the risk of penalties and audits, thereby
improving the quality of data.
User friendly: its easy to use, formatted step by step with
instructions provided at every step

Fig:- no. of tax payers
Fig:- age of tax payers
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
20000
1990 1995 2000 2005 2010 2015
male
female
0
5000
10000
15000
20000
25000
30000
1990 1995 2000 2005 2010 2015
under 65
above 65

In a developing country like india, it is supposed to have low
population who doesn’t pay tax on their income earned. But
shockingly only 3% of the population in india pays taxes on their
income earned all round the year. 3% comes around to 3.5crore i.e
35million tax payers out of the total population that resides in india.
Above all the majority of the tax payers fall under the income slab of
2.5-5 lakh. If compared with USA , the total tax payer out there is
45% of the total population.
Talking further if we consider the data reported by rangarajan
committee ,36.3 crore of the population live below the poverty line,
which also means no income as such is generated from this group of
people.
No. of taxpayers according to the tax slabs
Slab Percentage of taxpayers Number(in lakhs)
0-5lakhs 288.44 89.0%
5-10lakhs 17.88 5.5%
10-20lakhs 13.78 4.3%
>20lakhs 4.06 13%
Most of the income generated is from the tax slab of 0-5 lakhs, i.e 89% , which
also means most of the tax payers earns less than 5lakhs.

Amount of tax collected as per the income slab
Slab Tax Collected(Crores) Percentage Of Tax
Collected
0-5lakhs 15010 10.1%
5-10lakhs 21976 14.8%
10-20lakhs 17858 12.1%
>20lakhs 93229 63.0%
According to above data 89% of tax payers pay 10.1% of the taxes, on the
other hand 63% of the taxes are generated by 1.3% taxpayers.

EDUCATIONALQUALIFIFCATION
As per the graph there are a higher no. of post graduates in all the three
age groups, followed by the respondents who holds a graduate degree.
There are only 20% CA in middle age group and 7% if the entire population
is considered.
PARTICULARS YOUTH MIDDLE OLD
Graduate 2 1 7
Post graduate 8 7 3
CA nil 2 Nil
0
1
2
3
4
5
6
7
8
9
youth middle old
graduate
post graduate
CA

Total 10 10 10
Incomeslab
According to the graph 20% of the youth earns around a salary of less than
250000 annually, 50% earnd around 250000-500000 and only 30% earns
above 1000000. 20% of the income earned by this group is not taxable
income as per the tax slabs.
In the middle age group about 60% earns around 500000-1000000. In the
old age group 60% falls below the income slab of 250000 annually, the
reason being they are unemployed and are mainly dependent of pension.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
youth middle old
<10l
5l-10l
2.5l-5l
>2.5l

>2.5l 2 Nil 6
2.5l-5l 5 1 3
5l-10l 3 6 1
<10l Nil 3 Nil
SOURCEOFAWARENESS
As per the graph we can infer that mostly the respondents are aware of
filing their tax return through the organization where they are working in.
a few said that their source of awareness was the newspaper and IT
website.
Newspaper 10% 10% 30%
Social site Nil Nil Nil
Friends 10% Nil Nil
Organization 60% 60% 70%
IT website 20% 30% Nil
All of the above Nil Nil Nil
0
1
2
3
4
5
6
7
8
9
10
youth middle old
all
IT website
organization
friends
social sites
newspaper

PreferredLocationfor e-filing
80% of the youth files their taxes from their office and the remaining
from their home.
All the respondents belonging to the youth group files their taxes from
office and the old aged respondents gets it done from their home.
Office 80% 100% Nil
home 20% Nil 100%
office
home
cyber café
0
2
4
6
8
10
youth
middle
old
office
home
cyber café

Preferreddevice
The graph says that mostly all the respondents file their taxes through
laptop, only a few does it through their laptop.
MOBILE 40% 30% 10%
LAPOTOP 60% 70% 90%
0 2 4 6 8 10
youth
middle
old
mobile
laptop

Timetakentoe-file
Mostly all the respondents says that the time taken to efile their return
takes more than an hour. A handful number of respondents says that it
takes less than an hour , only 3% says it takes less than 30 minutes to
efile his return.
We can infer that filing electronically is time consuming.
30 minutes 1 0 0
>1hour 3 2 1
<1hour 6 8 9
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
youth middle old
<1hr
>1hr
>30mins

Difficulties faced
Mostly all the respondents says that they do face difficulties while
filing their tax returns electrnonically, the ones who says they don’t,
the majority belongs to the group who doesn’t efile their returns by
themselves.
Mostof the respondents vouch on the fact that digital signature is also
costly which is also a reason for not filing their returns electronically.
Yes 60% 70% 80%
No 40% 30% 20%
0
1
2
3
4
5
6
7
8
youth middle old
yes
no
Column1

Issuesfaced whilefilingelectronically
Unable to log in 10%
Poor server 60% 50% 70%
Instructions not properly
given
10% 30% 10%
Application did not respond
halfway
20% 20% 20%
As per the data mostly all the respondents say that the major issue that
they face while filing their returns electronically is due to poor server
followed by the application through which they are filing fails to
0
1
2
3
4
5
6
7
youth middle old
unale to login
poor server
instructions not properly
given
application did not respond
halfway

respond halfway . due to this they need to restart with the process
which is tedious and time consuming.
Another chunk of people says that they are not able to file it
electronically as because they are not very used to the tax terms and
the instructions are not properly given on the sites.
Safetyofe-filing
Excellent Nil nil Nil
Very good 20%
Good 30% 40% 20%
Satisfactory 20% 20% 20%
Unsatisfactory
neutral 30% 40% 60%
0
1
2
3
4
5
6
youth middle old
excellent
very good
good
satisfactory
unsatisfactory
neutral

Most of the respondents have a neutral outlook towards the safety of
efiling electronically, followed by the respondents who voted for the
options which says good followed by satisfactory. Thus a lot more
needs to be done to build a trust of the tax filers on the part of keeping
their files safe and secure.
Moreconvenient
Efile 40% 50% 20%
Manually 60% 50% 80%
The graph shows that people are still tilted towards filing their tax
returns manually rather that filing it electronically.
THE Middle age group has a 50-50 opinion of efiling and manually
filing their tax return. 80% of the old aged people prefers filing it
0
1
2
3
4
5
6
7
8
youth middle old
EFILE
MANUALLY
Column1

manually as they are comfortable with it rather than doing it
electronically. Though 60% of the youth says that they file their tax
returns electronically but the remaining 40% does it manually. Our
aim should be to encourage and build trust with the middle and youth
age group to file their tax returns electronically.
REASONSFORFILINGELEcTRONICALLY
Faster process
Convinient 60% 20%
Faster tax refund 20% 10% 80%
Extensionof filing
All of the above 20% 70% 20%
0
1
2
3
4
5
6
7
8
9
10
youth
middle old
all the baove
extension of filing
fast tax refund
convinient
faster process

YEAROFEFILING
2003-2006 - - -
2006-2009 - - 10%
2009-2012 20% 40% -
2012-2015 80% 60% 90%
2003-2006
2006-2009
2009-2012
2012-2015
0
1
2
3
4
5
6
7
8
9
youth
middle old
2003-2006
2006-2009
2009-2012
2012-2015

Mostly people have opted for electronically filing from the year 2012-
2015. Thus the respondents moving towards electronically filing is still
low.
Channelforfilingreturnforthisfy
electrnonically
manually
Column1
0
1
2
3
4
5
6
7
youth
middle old
electrnonically
manually

We see that the old age group respondents still opting for manually
filing their tax returns. 60% and 70% of respondents from the youth
and middle age group wishes to file their taxes electronically for this
year.
Electronically 6 7 4
Manually 4 3 6
COMPUTATIONDONEBY?
0
1
2
3
4
5
6
7
8
youth middle old
self
take help
Column1

Self 70% 80% 40%
Take help 30% 20% 60%
Satisfactionleveline-filing

Mostly all the respondent feels that a reform s required to be done for making efiling experience
delightful and satisfactory.
Good
Not as expected 30% 10% 20%
Satisfactory 30% 30% 50%
Poor
Need reforms 40% 60% 30%
FINDINGS:-
0 1 2 3 4 5 6
youth
middle
old
needs reform
poor
satisfactory
not as expected
good

Below are the findings based on the survey that was carried on to learn the status of
efiling in india, perceptions of taxpayers towards efiling theor returns and what
reforms are expected from their side .All the tax payers are well aware about efiling or
filing their tax returns electronically.
 The source of awareness for most of the respondents are their
organization where they are employed as because filing tax
returns is mandatory for all the individuals and thus it seems that
the organization makes it sure that its employees are well aware
of it and files their tax returns duly.
For some newspapers were a source of information and for some
it was their friends.
 For the youth and middle age group they prefer filing their
returns from their office unlike the old aged group who files from
their home, the reason being they are retired and spend most of
their time at home.
 Almost all the filers are aware of the importance of e-filing and
the benefits they can reap out of it.
 People generally opt for e-filing because its less time consuming,
convenient and it helps them to get their refunds faster compared
to the initial days when it used to take weeks, months and at
times even years for the refund to get credited in the accounts.
 The tax payers are satisfied with the e-filing service , whereas
mostly they wish to witness some reforms for an uninterrupted
filing.

 Most of the respondents have opted for e-filing from the last 3
years i.e 2012
 On being asked which mode of channel they will be using for
filing their tax returns there was a neutral response from the
respondents, some said they would prefer filing it electronically
and some said manually. Reforms should be taken to reduce the
number of filing manually.
 In case of the youth and middle age group mostly the filing is
done by themselves barring a few who takes help or gets it done
by others, the reason being not all are well versed with the tax
terms and the instructions provided are not very clear and
understandable.
In case of the old aged group they mostly prefer someone to do it
for them, only 40% said they file it on their own.
 Reforms are changes are required to make the efiling service
and experience delightful nd uninterrupted so that most
people are drawn to this service.

SUGGESTIONS:-
 Immediate reforms are expected , especially the application not
failing to responding halfway should be resolved so that the
respondents do not give up.
 Instructions should be clearly mentioned such that they do not
face any difficulty while filing their tax returns.
 Tax administrators should be polite and be ready to help the tax
payers online for any query they arise with.
 In order to spread the awareness it should be included in the
graduation and post graduation curriculum.
 Awareness programs can be arranged in offices and workplaces
to make the staffs aware of the e-filing service.

QUESTIONNAIRE:-
(This survey is soleley carried out for research purpose. The data provided by you will
be confidential and will not be used for any other purpose)
PERSONAL DETAILS
NAME:-
AGE:-
GENDER:-
 MALE
 FEMALE
EDUCATIONAL QUALIFICATION
 GRADUATE
 POST GRADUATE
 CHARTERED ACCOUNTANT
MARITAL STATUS:
 SINGLE
 MARRIED
1)TICK THE INCOME SLAB YOU FALL IN:-
 >250000
 250000-500000
 500000-1000000
 <1000000
2)HOW DID YOUCOME TO KNOW ABOUT EFILING OF TAX RETURN?
 Newspaper
 SOCIALSITES
 FRIENDS
 ORGANIZATION

 IT WEBSITE
 ALL OF THE ABOVE
3)FROM WHERE DO YOU EFILE?
 OFFICE
 HOME
 CYBER CAFÉ
4)WHICH ELECTRONIC DEVICE IS MORE CONVINIENTTO YOU?
 MOBILE PHONE
 LAPTOP
5) DO YOUDO THE COMPUTATIONON YOUR OWN,OR SOMEONE ELSE HELPS YOU OUTH WITH IT?
 Self
 Take help
6)HOW LONG DOES IT TAKE TO FILE YOUR TAX RETURN ELECTRONICALLY?
 >30MINUTES
 >1HOUR
 MORE THAN AN HOUR
7)DO YOU FACE ANYDIFFICULTY WHILE EFILING YOUR TAX RETURN?
 YES
 NO
8)WHAT ARE THE REASONS FOR NOT BEING ABLE TO FILE YOUR TAX RETURN ELECTRONICALLY?
 UNABLE TO LOGIN WITH PIN/PASSWORD
 POORSERVER
 INSTRUCTIONSNOTCLEAR MENTIONED ON THE SITE
 APPLICATION DIDNOTRESPONDHALF WAY
9)IS DIGITAL SIGNATURE COSTLY?
 YES
 NO
10)HOW WOULD YOURATE THE SAFETY OF EFILING?
 EXCELLENT
 VERY GOOD

 GOOD
 SATISFACTORY
 UNSATISFACTORY
 NEUTRAL
11)WHICH IS MORE CONVINIENTTO YOU?
 EFILING YOUR TAX RETURN
 FILINGYOUR TAXRETURN MANUALLY
12)WHY DO YOU CHOOSE EFILING YOUR TAX RETURN?
 FASTER PROCESS
 CONVINIENT
 FASTER TAXREFUND
 EXTENSION OFFILING DEADLINE
 ALL OF THE ABOVE
13)WHAT IS YOURSATISAFCATION LEVEL REGARDING YOUREXPERIENCE OF EFILING?
 EXCELLENT
 VERY GOOD
 GOOD
 SATISFACTORY
 UNSATISFACTORY
 NEUTRAL
14)WHAT IS YOURSATISAFCATION LEVEL TOWARDS ACCESSIBILTYOF EFILING?
 EXCELLENT
 VERY GOOD
 GOOD
 SATISFACTORY
 UNSATISFACTORY
 NEUTRAL
15)SINCE WHEN HAVE YOU BEEN ELECTRONICALLY FILING YOURTAX REUTRN?
 2003-06
 2006-2009
 2009-2012
 2012-2015
16)HOW ARE YOUPLANNING TO FILE YOURRETURNS FOR THIS FINANCIALYEAR?
 ELECTRONICALLY

 MANUALLY
17)HAS THE INTRODUCTION OF EFILING ENHANCED THE EFFICIENCYOF THE INCOMETAX DEPARTMENT?
 INCREASED
 DECREASED
 NO CHANGE
18)WHAT IS YOUROVERALL EXPERIENCE REGARDING EFILING?
 VERY GOOD
 GOOD
 SATISFACTORY
 POOR
 NEEDS REFORM
PLEASE KEY INYOUR SUGGESTIONS- INWHAT WAYCAN THE TAX PAYERS BE DELIGHTED WITH EFILING
SERVICE

CHAPTER 5:- STEPS TAKEN BY
GOVERNMENT

STEPS TAKEN BY GOVERNMENT:-
Tax refunds within 7-10 days
To boost efiling and attract a major chunk of taxpayers to its
vicinity , government has decided to send refunds to the tax payers
in about 7 to 10days.
The Aadhar based ITRV verification has seen a grand success on its
note, followed by which the government decided to reduce the
time span of refund within 7 to 10 days.
Initially refunds used to take months, and even a year. Introduction
of technology on filing returns has eased basic calculations and
faster transactions. There is barely anything left on the department
officials part to compute anything manually.
Introduction of e-verify is also expected to boost efiling of returns
as it is considered to be user friendly and wouldn’t make the tax
payers wait for long durations.
STATISTICS:-
2.06 returns were efiled on september 7, 2015. An increment of
26.12% was witnessed ove the last year where only 1.63 crore
returns were filed online

Central processing centre(CPC) Bangalore processed 45.18lakhs
return on September 7 and issued refunds to 22.14lakhs
taxpayers.
32.95 lakh e returns were electronically e verified
There were 3475 returns per minute as compared to 2901
returns per minute last year.
With the evolution in technology its considered that this statistical data
will only improve and grow at a rapid rate. This system enables the tax
payers to file their returns without any obstacles and get their refunds
within a short period of time. It is expected that this process of efiling
will give an end to paper processing of tax filing.
Keeping an eye on the rising and deep rooted corruption in the country
, topped with juniors being pestered by senior officers, filing online tax
returns would probably provide a solution to it and end it soon, which
will promote transparency in transactions and dealings in tax filing.
This would also encourage that chunk of people who run behind the
bushes to avoid paying their taxes duly as they find It tedious and
complicated.
Simplification of income tax return filing- Foreign Visits & Bank
Balance need not be declared
Listed below are the highlights from the fresh notification reelased by
ministry of finance

Foreign trips details not required:- visit to foreign trips need not be
recorded any longer. Its useful for those who wish to keep their trips
private. As per the new rules only th passport number needs to be
entered.
Balance details of various bank accounts not required:- IFS code
and bank account numbers are mandatory to be entered whether its
an saving/current bank account. Tax payer doesnt need to provide the
bank details of his dormant accounts, which are older for more than 3
years. The income tax department has the PAN details of the tax
payers, thus it is not a big deal on the part of the IT department to
extract any required information.
In case the income tax department requires any other
information of the tax payer it will notify the tax payer asking for
the same, making the initial filing easy and less complicated.

Reforms of efiling in india final print

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