The e-filing Income Tax Return (ITR) portal is set for a major overhaul, featuring significant improvements designed to enhance user experience for taxpayers. According to sources from ET Wealth Online, an internal memorandum from the tax department dated October 8, 2024, which is not publicly available, noted, “The operational phase of the current Integrated e-filing and Centralised Processing Centre (IEC) 2.0 is concluding, and the initiation process for a new project, Project IEC 3.0, has already begun.”
New e-filing ITR Portal: IEC 3.0 to Assist Taxpayers
As outlined in the aforementioned internal memorandum, the tax department highlighted that the IEC project will provide an e-filing platform enabling taxpayers to electronically submit their ITRs, along with statutory forms and various added services. A key component of the IEC initiative is the Centralised Processing Centre (CPC), responsible for processing submitted ITRs via the e-filing portal and the Income Tax Business Application (ITBA). “Furthermore, the IEC includes a Back-Office (BO) portal, utilized by field officers to access taxpayer filing and processing data,” stated the Income Tax Department in its circular.
Project IEC 3.0 is designed not only to continue the services offered by Project IEC 2.0 but also to implement a significantly improved system, ensuring a secure and user-friendly experience.
Seeking Public Input Ahead of Launching ITR e-filing 3.0 Portal
The tax department, as noted in the internal circular, mentioned that Project IEC 3.0 will significantly impact the workings of both the department and the general public in the years ahead. Therefore, it is essential for the department to gather feedback from ITR portal users and other stakeholders, making the IEC 3.0 project more taxpayer-friendly.
The tax department stated that consultations with various Project IEC users and stakeholders will be held to discuss the strengths and weaknesses of the existing Project IEC 2.0, as well as to identify meaningful improvements for IEC 3.0. To facilitate this, a committee headed by an officer of at least the rank of Commissioner of Income Tax (CIT) will be formed within one week of the October 8 order. This committee will compile opinions, views, and suggestions from department officers, tax professionals, taxpayers, and relevant stakeholders in their respective regions. The Income Tax Department has requested that the committee submit its feedback via email by November 30, 2024, as the shift from IEC 2.0 to IEC 3.0 is expected to offer a more user-friendly experience.
Project IEC 3.0 aims to harness advanced information technology for faster ITR processing, enabling quicker refunds for taxpayers. It is also anticipated that the upgraded system will reduce taxpayer grievances. Additionally, stringent data quality checks are expected to be introduced. Users experienced various issues with IEC 2.0, such as challenges in downloading previously filed ITR forms, accessing Form 26AS, server failures, and payment complications, all of which could be addressed in IEC 3.0.
There is cautious optimism that the Integrated e-filing and Centralised Processing Centre will be enhanced to accommodate the needs of a growing taxpayer base. The Chartered Accountants Association of Surat has consistently highlighted in its representations that e-commerce platforms do not face crashes during peak sale periods, unlike the ITR e-filing portal, which often encounters glitches. Currently, there is ongoing litigation in the Gujarat High Court regarding the issues faced with the Income Tax Portal. If the portal is upgraded in a timely manner, it could not only alleviate these difficulties but also help avert numerous legal disputes.