ITR version 2.0 to have pre-filing of Income Tax Returns and much more

ITR version 2.0 to have pre-filing of Income Tax Returns and much more

To enable faster and accurate outcomes for income tax payers in the country, the Union Cabinet has approved integrated e-filing and centralised processing center 2.0 project. The Income Tax department project costing Rs 4,241.97 crore would improve accuracy and drastically reduce refund/processing time. The project would enhance user experience at all stages, improve tax payer awareness and also educate the tax payers through continuous engagement.

The Union Cabinet, chaired by Prime Minister Narendra Modi, also approved the expenditure sanction for the consolidated cost of Rs 1,482.44 crore of the existing CPC-ITR 1.0 project upto FY 2018-19.

  • Salient features
    Faster and accurate outcomes for taxpayer.
  • First time right approach,
  • Enhancing user experience at all stages.
  • Improving taxpayer awareness and education through continuous engagement.
  • Promoting voluntary tax compliance.
  • Managing outstanding demand.

This approval has significant benefits for the Department and taxpayers through various functionalities such as pre-filling of ITR and acceptance by taxpayer as a means to improve accuracy and to reduce refund/processing turnaround time drastically, facilitation to taxpayers in resolving outstanding tax demands; integrated contact centers for taxpayer assistance and tax payer outreach program through digital media and employer/partner accreditation program to bring significant enhancement in services to taxpayers.

The decision will ensure horizontal equity by processing returns filed by all categories of taxpayers across the country in a consistent, uniform, rule driven, identity blind manner. This will assure fairness in tax treatment to every taxpayer irrespective of their status.

By faster processing of returns and issue of refunds to the taxpayer’s bank account directly without any interface with the Department, by adhering to international best practices and standards (ISO certification) and by providing processing status updates and speedy communication using mobile app, email, SMS and on the Department website, the decision will ensure transparency and accountability.

The proposal ensures the continuation of the Department’s goal towards business transformation through technology. The E-filing and CPC projects have enabled end to end automation of all processes within the Department using various innovative methods to provide taxpayer services and to promote voluntary compliance.

The changes in the Income Tax e-filing will come into effect in 18 months which means we will have to follow the old system when we file income tax returns for 2018-19.

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