FinMin summons Infosys chief Salil Parekh over bugs in income tax portal

The finance ministry has summoned Infosys managing director and chief executive officer Salil Parekh over troubles with the new income tax (I-T) e-filing portal. The website went live earlier this year, but has been marred by glitches since its launch on June 7.

Parekh has been called to appear before the finance ministry on Monday to explain to Finance Minister Nirmala Sitharaman “as to why even after two and a half months since launch of the new e-filing portal, glitches have not been resolved,” the Ministry of Finance said in a tweet on Sunday.

“Since August 21, the portal itself became available,” it added.

The new I-T e-filing portal was launched on June 7, with the motive to reduce the processing time for returns from 63 days to one day and expedite refunds. Infosys was given the contract to develop the website in January 2019 after a bidding process with an outlay of Rs 4,241.97 crore. The project was expected to be completed in 18 months and was to be launched after three months of testing. However, it was launched after a delay. The government has so far paid Rs 164.5 crore to Infosys between January 2019 and June this year for developing the portal.
 

Taxpayers have since faced numerous problems accessing and using the portal since the day of its launch.

This is the second time the brass of the information technology major will be in North Block over the issue. The previous meeting took place on June 21. Infosys had then assured the finance ministry of addressing all glitches in a time-bound manner.

“I wish it hadn’t happened this way. But we are correcting the course and soon the portal will be as planned,” Sitharaman had said in June.

Prime Minister Narendra Modi, too, has sought an update from Sitharaman. The finance minister is expected to meet tax officers in New Delhi to get their feedback on the new portal.

“The entire assessment process is on hold. The time limits of reopening I-T cases need to get extended beyond September,” said a tax official. Rajat Mohan, senior partner, AMRG & Associates, said the I-T portal is far from functional.  

“Taxpayers and tax professionals are facing a hard time doing simple operations, which include filing of returns, filing of rectification, and online checking of tax credit. Besides, the government is under immense pressure to meet revenue targets. A dysfunctional I-T portal is delaying not only tax compliance, but tax collections as well,” said Mohan.

Amit Maheshwari, partner, AKM Global, said the service provider was given two years to develop a new portal. “Two years were enough, given the old portal was running smoothly,” said Maheshwari. The new portal has issues like late fee being levied for I-T returns filed after July 31, especially when the last date of filing returns has been extended.

TAXING TIMES
2019
Infosys awarded contract to develop next-gen I-T filing system to reduce processing time for returns and expedite refunds
2019-2021
It does trial runs before June 7 launch
2021
June 7: It launches new
I-T e-filing portal: www.incometax.gov.in
June 23: Finance Minister Nirmala Sitharaman asks
Infosys to fix all issues on priority
AUGUST 21:
Portal becomes unavailable
FinMin summons Infosys chief Salil Parekh for an explanation