E-governance Plans in MCA and Income Tax Departments - Professionals - Legal - TIK Share
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E-governance Plans in MCA and Income Tax Departments


CA Pulkit Sharma

2013-10-04

INTRODUCTION

Government of India is rolling out its E-governance Plans not at a faster pace but its doing. If we talk about Finance or Tax professionals, much of the work is made online. The front leader in implementing the E-governance is Ministry of Corporate Affairs (MCA). Income Tax department is catching up the race.

MINISTRY OF CORPORATE AFFAIRS

Ministry of Corporate Affairs has made almost all processes online and one need not be physically visit the ROC office to register a company or filing various returns.

Various Facilities that MCA portals make available to general public are:

  1. Registering a Company or LLP
  2. Appointing director
  3. Change in AOA/MOA
  4. Obtaining DIN
  5. Filing Annual Returns
  6. Filing Various returns
  7. Meeting many legal requirements which were earlier done by physical process

MCA has provided various facilities and are really helping the general public but still user complain of some inconvenience caused to them due to some reasons like:

  1. Service Unavailability – MCA server are down most of the time. To do task which should not take more than 10 minutes, may take a day or more.
  2. Technological backwardness: Check the list of software’s required by MCA to use online facilities. PDF 9.4 to 10.x, so if you have latest PDF you will not be able to file the return.

Same is the case with Java that MCA recommends.

MCA is using PDF as main software for its document filing purposes. And even users think its better to use PDF than Excel.

INCOME TAX DEPARTMENT

Now if we talk of Income Tax Department, still the department is way behind the MCA in implementing the 100% E-governance system. And unlike MCA, you have to make a lot of physical visits to Department to get the work done.

However the various stuffs you can do at income tax portal are:

  1. Filing the Income tax Returns
  2. Filing the Tax Audit Reports
  3. Electronic payment of Taxes
  4. Viewing Tax credit

Income Tax is behind MCA and even Income Tax portal gives same troubles to users. Slow Servers, Service Unavailable etc.

And Income Tax Portal makes use of Excel as its primary software for Return and document uploading.

BENEFITS

It is really good to see the way MCA and Income Tax departments have scaled up the quality of services after going Electronic. The various benefits that public got by E-governance are:

  1. Corruption Level has decreased, not much but yes has gone down
  2. A lot of time is saved  due to services available at your desktop
  3. Healthy Environment, yes due to decreased use of Paper returns lots of trees are saved.
  4. And many more


CHANGES REQUIRED

But still some improvements are to be made and more facilities to be made online by Income Tax Department. And recent case of Hackings by CA students has socked the users. Actually it’s not a Hacking in technical terms; it is just a misuse of facility provided by Income Tax Department. It is very easy to get the Income Tax password of any user. Anyone can open the account of another person if wants. And most of the Bank Staff, Accountant or Finance people can easily see your income by visiting your account without you knowing. And I believe Income tax Department should change its password retrieval process. Currently you can set the password by either Answering Security Question or filling the last years Return acknowledgement number. Any one get you acknowledgement number and change the password.

As per me Income Tax Department should send the link to email address to reset the Password. But again problem lies in this process also, as most of the users are not technical strong and their work is done by Chartered Accountants. And incase CA is changed; it becomes very difficult to change the password as email will of previous CA.