InvestorQ : Is it possible for the government to handle the deadline of 31st July for tax filing?
vaishnavi mhatre made post

Is it possible for the government to handle the deadline of 31st July for tax filing?

Answer
image
vidhya Laxmi answered.
3 weeks ago
Follow

Actually why not. The feedback is that things can still sail through with some pressure in the last few days. Infosys has rectified all the bugs in the software and now filers are not having any problems in any significant way. It is time the filers start the return filing process well before the last day rather than being trapped in last minute hassles. Out of nearly 8 crore annual tax filers less than 20% have filed till date. The government is confident, and rightly so, that the infrastructure is good enough to handle the load in the last few days.

The question is can this process be improved for future years to make it more fool proof. Actually, the government can experiment with two things here. To begin with, it can exempt all those earning less than Rs5 lakhs from filing returns and leave the choice to the individual, who may have capital gains or refunds in specific cases. In all other cases, the Form 16 should be actually tantamount to a return filing. By increasing the limit it will substantially reduce the pressure on the tax filing infrastructure and make things smoother.

One of the things India learnt from the massive vaccination drive for COVID is that a protocol based appointment works best for a mega project. What the department can do is to allocate slots during which an individual with a certain PAN number can file his or her returns. This will distribute the pressure over the last few days of tax filing and ensure that there is no undue pressure on the servers on the last day. The infrastructure for taxation is fairly robust and a little bit of planning can make things a lot easier and smoother.

3 Views