The e-filing ITR portal for income tax is about to undergo a revamp with ‘substantial’ changes that are more friendly for taxpayers. As per ET Wealth Online sources, an internal circular from the tax department, which is not publicly available, dated October 8, 2024 stated,, “The operations phase of the existing Integrated e-filing and Centralised Processing Centre (IEC) 2.0 is coming to an end and the process of bringing in a new Project, Project IEC 3.0 (that shall replace the existing Project IEC 2.0) has already been initiated.”
How may the new e-filing ITR portal IEC 3.0 help taxpayers
As per the internal circular mentioned earlier, the tax department has stated that the IEC project offers an e-filing platform that allows taxpayers to electronically file their ITRs, submit statutory forms, and utilize various other services. A vital element of the IEC project is the Centralised Processing Centre (CPC), which is responsible for processing the submitted ITRs through the e-filing portal and ITBA. “In addition to the above, the IEC provides a Back-Office (BO) portal, which is used by the field officers to access taxpayer filing and processing data,” the Income Tax Department said in its internal circular.
“Project IEC 3.0 is envisaged to provide not only a continuation of the services rendered by Project IEC 2.0, but also to put in place a significantly improved system to ensure a secure and user-friendly environment,” said tax department’s internal circular.
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Tax department is seeking public suggestions before launching the new ITR e-filing 3.0 portal
The income tax department, in the internal circular cited above, said that Project IEC 3.0 will have a far-reaching impact on the working of the department as well as for the taxpayers and common public in the years to come. Hence, it is important for the tax department to take opinions and suggestions from ITR portal users and other stakeholders to make the IEC 3.0 project taxpayer- friendly.
“It is considered desirable to hold wide consultations with the various Project IEC users/ stakeholders and obtain their opinion/views/suggestions in respect of the good features/deficiencies of the existing Project IEC 2.0 as well as the tangible improvements that may be made in IEC 3.0,” said the tax department in the internal circular.
The income tax department has stated that a committee, led by an officer not below the rank of CIT, should be established within a week of the order dated October 8, 2024. This committee will be responsible for gathering opinions, views, and suggestions from department officers, tax professionals, taxpayers, and other stakeholders in their respective regions. The Income Tax Department has instructed that the responses from this committee should be emailed by November 30, 2024.
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Chartered Accountant Ashish Niraj, Partner, A S N & Company, a CA firm, says that the transition from IEC 2.0 to IEC 3.0 may bring a more user-friendly experience for all stakeholders.
“Project IEC 3.0 aims to induce high speed information technology which will enable faster processing of ITRs and thereby taxpayers may be able to get quicker refunds if any. It is also expected that with the introduction of latest technology in IEC 3.0 taxpayers grievances may greatly reduce. Moreover, I feel stringent data quality checks should be implemented in IEC 3.0. In IEC 2.0 sometimes taxpayers and professionals faced problems in downloading last year filed ITR Forms, downloading 26AS, server related failures, challan payment failed issues, etc which can be improved in IEC 3.0,” says Niraj.
“One can be hopeful at the most if Integrated e-filing and centralised e-processing centre is upgraded to suit the needs and quantity of growing taxpayer base. Time and again CAAS has reiterated in its representations that none of the e-commerce platforms crash during festive sale offers whereas the ITR e-filing portal experiences glitches. A writ is already pending before Hon’ble Gujarat HC filed by Chartered Accountants Association Surat with respect to the glitches in Income Tax Portal. Thus if wisdom prevails and Portal is upgraded in timely manner, not only hardships, but also numerous litigations can be prevented,” says Chartered accountant Hardik Kakadiya, President, Chartered Accountants Association, Surat (CAAS).