Infosys is implementing next-gen I-T filing system: All you need to know

The move will help in bringing down the income tax return (ITR) processing time to one day and hence speed up refunds

As the IT services major Infosys has been appointed to implement the next-generation system for processing income tax return filings after the Union Cabinet sanctioned an estimated Rs 4,241.97 crore for the project, here are a few important things to know about this new IT-filing system.
 

• PM Narendra Modi-led Cabinet gave its approval to expenditure the sanction of Rs 4,241.97 crore for Integrated E-filing and Centralised Processing Centre 2.0 Project of the Income Tax department.

• By 2020, the income tax filing system will not be managed by the government, but Infosys professionals. The project is expected to be completed in 18 months and will be launched after three months of testing.

• The move will help in bringing down the income tax return (ITR) processing time from the current average of 63 days to just one day and hence speed up refunds. 

• With the new I-T filing system, taxpayers will receive pre-filled forms in their income-tax accounts with name, Permanent Account Number (PAN), and other necessary details. The salary column and tax deduction will also be mentioned, and the taxpayer will be able to edit and add details of other income to it.

• The new I-T filing system will be developed as more tax friendly and will ensure transparency and accountability besides faster processing of returns and issue of refunds to the taxpayers' bank account directly without any interface with the Income Tax Department.
   
• According to the official release by the Centre, the broad objectives of the integration project include faster and accurate outcomes for the taxpayer, enhancing the user experience at all stages, improving taxpayer awareness and education through continuous engagement. Besides, it will also be promoting voluntary tax compliance and managing outstanding demand.
   
• The major objective of the proposed I-T filing system is to cut down the physical intervention by the Income Tax department in the return filing and refund process.

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With inputs from India Today and Press Trust of India (PTI)