In a significant development for millions of taxpayers, the Income Tax Department is planning to launch a new e-filing system, called IEC 3.0, which promises to make income tax return (ITR) filing faster and more efficient. According to reports, this upgraded system will replace the current Integrated e-Filing and Centralized Processing Center (IEC) 2.0, which has faced several technical issues in the past. The aim is to provide a smoother experience for taxpayers and faster processing of refunds.
What is the IEC Project?
The IEC project is an e-filing platform that allows taxpayers to file their income tax returns online, submit forms, and access a range of other services. A critical part of this project is the Centralized Processing Center (CPC), which is responsible for processing the ITRs submitted through the e-filing portal. This platform also includes a back-office portal that enables field officers to access taxpayer information for processing and filing purposes.
Key Benefits of the Upcoming IEC 3.0
The new IEC 3.0 system aims to improve upon its predecessor, IEC 2.0, in several ways. According to an internal circular, the goal is not just to maintain the current services but to make significant advancements in the e-filing process. Here’s how the new system will benefit taxpayers:
- Faster Refunds: With the use of advanced technology, the processing of ITRs will be quicker, leading to faster refunds for taxpayers. This will address one of the biggest concerns in the current system, where refund delays have been common.
- Better System Stability: The new system is designed to reduce technical glitches like server issues, form downloads, and challan payment errors, which were frequent in the current version.
- Improved Data Quality Checks: IEC 3.0 will implement stricter data quality checks to ensure that taxpayer information is accurate and error-free. This will also help reduce the chances of mistakes during filing.
- Enhanced User Experience: The system will be more user-friendly, simplifying the filing process for taxpayers. Chartered accountants and professionals have raised concerns about the existing portal’s difficulties, and IEC 3.0 aims to solve these problems effectively.
Why an Upgrade is Crucial
Many taxpayers and professionals have been facing problems while using the current IEC 2.0 system, such as issues with downloading ITR forms, accessing 26AS, and glitches during the payment of taxes. Experts, including Hardik Kakadia, President of the Chartered Accountants Association in Surat, have compared the situation with e-commerce platforms that handle heavy traffic seamlessly during festival sales. He pointed out that if these platforms can function without crashes, the income tax portal should also be able to handle large volumes of traffic, especially during the peak filing season.
The Income Tax Department recognizes the need for this upgrade, and by introducing IEC 3.0, they hope to provide a better service to taxpayers, reducing complaints and technical challenges. Additionally, this upgrade can prevent potential litigation that arises due to the inefficiency of the current system.
Seeking Feedback for Improvement
In a bid to make IEC 3.0 even more user-friendly, the Income Tax Department is seeking feedback and suggestions from professionals and taxpayers. This will ensure that the new system addresses the concerns of users and provides a seamless experience for filing tax returns.
