Impact of Income Tax procedure

1. Group Members
Imran
Khan
Saurabh
Gupta
Shreshtha
Jaiswal
IMPACT ANALYSIS OF
INCOME TAX

2. HISTORY OF e-GOVERNANCE
The United States of America was especially
driven by the 1998 Government Paperwork
Elimination Act, introduced by former
President Mr. Bill Clinton on December 17,
1999.

3. What is e-governance?
E-governance is the application of
Information Technology to the processes of
government functioning to bring about…
Smart
Moral
Accountable
Responsive
Transparent Governance.

4. 4 PILLARS of e-governance

6. BENEFITS of e-governance
Cost effective
Speed, efficiency & convenient
Minimum use of paper
[ENVIRONMENTAL BONUS]
Increases interest of citizens
Easily accessible

7. e-governance is a journey and
not a destination
 Major task : Simplification & speeding.
Two main goals :
1.Process integration as electronic back office
including training of civil servants.
2.Harmony of e-services.

8. Top 5 countries in world which
implemented e-governance
RANK COUNTRY
1. SWEDEN
2. DENMARK
3. NORWAY
4. UNITED STATES
5. NETHERLANDS

9. Department of
Electronics and
Information
Technology
(DEITY)
Department of
Administrative
Reforms and
Public
Grievances
(DARPG)
NeGP
(National e-
Governance
Plan)
e-governance in India

10. AIM:
Improve delivery of Government Services to citizens &
businesses.
VISION:
Make all Government services accessible to the common man
in his locality, through common service delivery outlets and
ensure efficiency, transparency & reliability of such services
at affordable costs to realize the basic needs of the common
man.
e-governance in India

11. Mission Mode Projects & Components:
A mission mode project (MMP) is an individual project within the
National e-Governance Plan (NeGP) that:
 Focuses on one aspect of electronic governance, such as banking,
land records or commercial taxes etc.
 Clear defined objectives, scope and timelines
 Measurable outcomes and service levels.
Types of Mission Mode Projects (MMPs):
1. Central MMPs
2. State MMPs
3. Integrated MMPs
There are 31 Mission Mode Projects which are going on as on date.
e-governance in India cont……

13.  Income Tax Department (ITD) undertakes a comprehensive deployment of ICT to enable
taxpayers and citizens to transact with the department on anywhere anytime basis.
 Return of income tax filing for companies made mandatorily compulsory online every
year.
Objectives:
 Systems Integrator and Databases Migration & Consolidation: Have a single ITD
application running over a single national database with BCP and DRS.
 PAN Module and PAN Related Services: Provide PAN card to citizens and improve
authentication for all major financial transactions.
 Electronic filing of Income Tax Returns: To enable all taxpayers to fulfill their statutory
obligation of filing their Income Tax Return electronically- 'Anytime', 'Anywhere', securely
and conveniently using the Internet.
 Tax Information Network (TIN): Deliver more than 18 e-services to the taxpayers through
digitization of all processes, filing of forms/applications, digitization of tax payments,
authentications, tax credit verifications and refund processing.
 Refund Banker Scheme: Fast track issue of refunds through agency bank (SBI) and enable
web based tracking of refund status.
Central MMPs : Income Tax

14.  The Income Tax website has facilitated end-to-end
online delivery of many services though several
taxpayers appear to prefer the ‘manual’ process.
 Most services are still accessed manually with the
‘online’ part primarily being used by institutional users,
as mandated by the department.
Central MMPs : Income Tax Cont….

15. The number of income tax payers in India
 Earlier, tax collection was mainly done through manual counters
provided by the department or at the special tax collection drives
a week before the tax returns filing deadlines.
 In order to respond to the growing demand for an efficient
system of tax collection, the Income Tax Department launched a
centralized website in 2002 with the aim to answer broad-based
Income Tax queries.
Central MMPs : Income Tax Cont….
Financial Year Income Tax Assesses (Millions)
1996-97 12.5
2006-07 31.9
2007-08 33.6
2008-09 32.6
2009-10 34.0
2010-11 33.7

16.  In 2005-06 more substantial electronic transactions were
introduced through the Income Tax website.
 Presently 19 services are offered through the online system
including but not limited to: Preparation and filing of individual
Income Tax returns and TDS returns and TDS returns by tax
deductors; filing and tracking of PAN/TAN applications; status
enquiry of taxes paid in banks; and access to taxation rules and
taxpayer-specific information.
Central MMPs : Income Tax Cont….

17.  For end-to-end delivery of these services through the online mode requires
users to have Digital Signatures for filing documents and credit cards for making
on-line payments.
 E-filing and e-TDS for corporations are the only two services that have been
mandated through the online mode.
 Besides the Income Tax portal, services are also provided through the websites
and offices of National Securities Depository Limited (NSDL) and UTI
Infrastructure Technology And Services Limited (UTIITSL), and Income Tax
offices across the country.
 Users of online services primarily comprise of individuals and corporate bodies.
The Income Tax portal was mainly used for e-filing of returns.
 The portal is regularly used to access information about rules and regulations.
Central MMPs : Income Tax Cont….

18.  Mode of obtaining primary data/information: STRUCTURED QUESTIONNAIRE
 Examine difference between manual and computerized mode of operation from
citizens/end users’ point of view
 Cost related dimensions were measured directly WHILE quality and governance
related indicators were measured as perceptions on a 5-point Likert scale.
 Structured feedback on experience of using computerized interface with
objective of providing inputs for future evolution & scope of computerized
systems.
 Systematic selection of samples of different types of users.
RESEARCH METHODOLOGY

19. FRAMEWORK OF STUDY
DIMENSIONS OF IMPACT INDICATORS
Cost of Availing Services
Number of trips, Average Waiting time
Amount paid as bribe to functionaries
Amount paid to agents to facilitate service
Quality of Governance
Transparency participation, accountability, corruption
measured.
Quality of Service
Interaction with staff, complaint handling, privacy,
accuracy measured on 5 point scale
Overall Assessment
Preference for manual vs. computerized system
Composite score manned on Likert Scale factoring in
the key attributes of delivery system

20.  Random Sampling Methodology
 Sample Size of 70 respondents
 Questionnaire floated over emails (specific groups and individuals) and
social networking sites.
 Entire respondent population divided into region (north, south, etc.), cities
(metro, non-metropolitan, etc.).
 Users of online services primarily comprise of individuals and corporate
bodies. The Income Tax portal was mainly used for e-filing of returns.
SAMPLING PLAN & SIZE

21. IMPACT ON KEY DIMENSIONS
PROJECT INCOME TAX PORTAL (e-FILING)
Manual Online
Number of trips Individual 4 2
Corporate 2 1
Waiting time (minutes) Individual 45 15
Corporate 25 10
Total elapsed time in availing
service (Days)
Individual 11 8
Corporate 10 4
Proportion paying bribes (%) Individual 35 10
Corporate 10 N/A

22. PROJECT INCOME TAX PORTAL (e-FILING)
Manual Online
Proportion using intermediary
(%)
Individual 33.5 10.5
Overall Service Quality (5
point scale)
Individual 3.9 4.4
Corporate 3.1 3.9
Overall Governance Score (5-
point scale)
Individual 4 4.2
Corporate 3.1 3.9
Composite Score (100 point
scale)
78 84
Preference for computerized
system (%)
82
IMPACT ON KEY DIMENSIONS contd.

23.  Respondents asked to state three aspects of service delivery that they
considered important and essential
 Around 20 attributes ranging from cost of access, convenience, quality of
delivery and quality of governance.
 Corporate filers of income tax return perceived
 Corruption level
 Accuracy of transactions
 Cost of availing services
 Individual filers also perceived following as important
 Accessibility to data
 Speed and efficiency of query handling
 Clarity & simplicity of processes and procedures
ANALYSIS OF DESIRABLE ATTRIBUTES

24.  LIMITATION: Only online users considered. Huge chunk of physical service
availers not considered.
 Survey indicates
 Corporate users have benefitted on more aspects of services provided by
ITD.
 Individual filers have had limited benefits of services provided by ITD.
 Varying degree of impact -> importance of making service delivery completely
online so that it delivers the expected benefits such as:
 Time required for preparing income tax returns is significantly less in online
system as compared to manual mode.
 Requirement of depositing paper copies of Acknowledgement forms with IT
dept. -> negates time gained through e-Filing.
 Simplified procedures and clear guidelines required to encourage use by actual
users and eliminate dependency on middlemen/intermediaries.
LEARNINGS FROM THE STUDY

25. SCOPE of e-governance

26. Major implementation areas
 Public Grievances: Ration Card, Transportation facilities.
 Rural Services: Land Records.
 Police: FIR registrations, Lost and
Found details.
 Social Services: Birth, School, Death Certificates.
 Public Information: Information about Employment,
Hospitals, Railways etc.
 Agricultural Sector: Fertilizers, Seeds.
 Utility Payments: Electricity, Water, Telephone bills.
 Commercial: Income tax, Custom duty, Excise duty.

27. IMPORTANCE of e-governance
 Building strong and effective information chain.
 To bridge the gap between India and developed
countries.
 Effective utilization of resources.
 Reduction in delays, Red tape and corruption.

28. LIMITATIONS of e-governance
 Budget.
 Poor IT literacy.
 Lack of electricity in rural areas.
 Corruption.
 Privacy problems.

29. CHALLENGES of e-governance
 Lack of Integrated services
 Lack of KEY PERSONS
 Population
 Lack of communication among different
departments
 Different Languages

30. Result of Indian projects of
e-governance
15%
50%
35% Successful projects
Failure of projects
Partly failure

31. Conclusion
The goal of e-governance is the ability to access
& interact with the world.
Developing countries have many opportunities to
better themselves through e-governance.
WALK WITH THE WORLD.

32. Recommendations
 Create awareness about positive role, the
Government can play in ECONOMIC and SOCIAL
development.
 E-governance makes an impact on the
KNOWLEDGE OF SOCIETY as well as on the
LITERACY LEVEL of society.
 Reduce CORRUPTION in delivery of public
services.
 E- govt. benefits only the URBAN PEOPLE.