Infosys to build Rs 4,242 crore tax filing system that would enable I-T refunds in 24 hours by 2020.
The government is keen to reduce the processing time for refunds to just one day from 63 days, and to ensure that this happens it has selected IT-major Infosys to develop Rs 4,241.97 crore worth next-generation income tax filing system.
It is expected that the new project will be completed in 18 months and it will be formally launched after three months of testing, government said.
The government is hopeful that the new project for filing of returns is operational in 2020.
The Cabinet meeting chaired by Prime Minister Narendra Modi, gave its “approval to expenditure sanction of Rs 4,241.97 crore for Integrated E-filing and Centralised Processing Centre 2.0 Project of the Income Tax Department”, a report in Financial Express quoted Union minister Piyush Goyal.
The new system is expected to lessen the troubles that the taxpayers face on account of delay in processing of refunds, Piyush Goyal said, adding that the Central Board of Direct Taxes (CBDT) has to spend a lot of money in form of interest on pending refunds. The reduction in processing period would thus help both the taxpayers and CBDT, he said.
The next generation system is expected to enhance transparency and accountability, as also process returns faster and issue refunds to the taxpayers’ bank account directly without any interface with the Income Tax Department.
Further, the new project will enhance user experience at all stages, improve awareness through education and continuous engagement.
The government also hopes that it would promote voluntary tax compliance and manage outstanding demand. Tax refunds worth Rs 1.83 lakh crore have been issued so far in FY19, it said.
Source: Financial Express