MM TAX CLUB

In the year 2023, the Central Board of Direct Taxes (CBDT), Department of Revenue, and Ministry of Finance has taken many citizen-centric initiatives throughout the year. The CBDT has furthered initiatives through reforms by focusing on taxpayer outreach, and assistance through active helpdesks, and has embraced faceless processes, showcasing a commitment to transparency and efficiency. The revamped national website and other digital initiatives have also contributed to an overall improved taxpayer experience.

Gross tax collections of Rs. 12.67 lakh crore mark a 17.7% YoY increase, with net collections reaching Rs. 10.64 lakh crore, reflecting a 23.4% growth. Notably, 58.34% of the budget estimates for the fiscal year have already been realized. Speedy processing and refunds are evident, with over Rs. 2.03 lakh crore refunded, and more than 3.43 crore Income Tax Returns (ITRs) processed within 7 days. The introduction of initiatives like TIN 2.0, pre-filling of ITRs, and updated returns has streamlined processes, resulting in 44.76 lakh updated returns filed.

Following are some of the major achievements of the Department of Revenue, Ministry of Finance, in 2023:

CENTRAL BOARD OF DIRECT TAXES:

STEADY GROWTH IN DIRECT TAX COLLECTIONS:

• Gross collections in FY 2023-24, at Rs. 12.67 lakh crore are 17.7% higher than the gross collections for the corresponding period of the preceding year.
• Net collections in FY 2023-24, at Rs. 10.64 lakh crore are 23.4% higher than the net collections for the corresponding period of the preceding year.
• 58.34% of Budget Estimates for FY. 2023-24 already achieved.
• As on November 30, 2023

SPEEDY REFUNDS:

• Refunds amounting to Rs. 2.03 lakh crore issued between 1st April, 2023 to 30th November, 2023.
• Special initiative was taken in case of 35 lakh refund failed cases of all AYs and refund was issued to validated bank account.
• Enablement of TIN 2.0 resulted in quick issue of refunds. More than 3 crore refunds have been credited using TIN 2.0 with an error rate of 0.002%.
• Highest number of refunds issued in a single day is 14 lakh.

ACHIEVEMENTS IN INCOME TAX RETURN (ITR) FILINGS:

• 7.97 crore ITRS filed for all AYS till November 30, 2023
• 7.76 crore ITRS filed for
  A.Y. 2023-24 till November 30, 2023
• Highest filing of ITRS in one day
  64.33 lakh ITRS filed on 31st July, 2023
• Maximum ITRS filed in a month
  5.5 crore ITRS filed in July, 2023
• ITR filing per second: 486
  (At 4:35 pm on 31st July, 2023)
• ITR filing per minute : 8,622
  (at 5:54 pm on 31st July, 2023)
• ITR filing per hour: 4,96,559
  (between 5PM to 6PM on 31st July, 2023)

UPDATED RETURNS:

• Updated Returns facility was introduced by Finance Act, 2022 to facilitate taxpayers to update their returns within two years from the end of the relevant assessment year, subject to prescribed conditions.
• Upto 30th November, 2023, over 44.76 lakh Updated returns have been filed, resulting in additional tax collection of over Rs.4000 crore.

PRE-FILLING OF ITR EXPANDED:

• A substantial portion of the ITRS are pre-filled with data pertaining to the taxpayers' profile.
• Pre-filling has been expanded to include information on salary, interest, dividend and tax payments including TDS related information, brought forward losses, MAT credit etc to ease compliance for taxpayers.
• The taxpayers used this facility extensively resulting in smoother and faster filing of ITRS
• Total Number of fields pre-filled across all ITR Forms 1-7: 2469

SPEEDY PROCESSING

• More than 7.43 crore ITRS for A.Y. 2023-24 processed including 3.26 crore ITRs in which refunds were claimed.
• More than 1.66 crore ITRS for A.Y. 2023-24 were processed in a single day.
• Average processing time reduced from 16 days (F.Y. 2022-23) to 10 days (FY. 2023-24).
• Approximately 23% of ITRS were processed within 24 hours of filing.
• More than 3.43 crore ITRS which is 43% of ITRS processed within 7 days of filing.

BENEFICIAL INITIATIVES FOR TAXPAYER FACILITATION:

• Circular No. 13/2023 issued for condonation of delay under Section 119(2)(b) of the Income-tax Act, 1961 (the Act) authorizing CCSIT/DGSIT to deal with applications pertaining to returns of income claiming deduction u/s 80P of the Act for assessment years AY 2018-19 to AY 2022-23.
• Circular No. 19/2023 issued for condonation of delay under Section 119(2)(b) of the Income-tax Act, 1961 for extending due date for filing of Form 10-IC for AY 2021-22 till 31.01.2024.

TAXPAYER OUTREACH PROGRAMME:

• Campaigns on social media along with targeted email and SMS campaigns were launched to encourage the taxpayers to file their ITRS early and also to create awareness among them about important tax compliance dates and processes.
• During current FY more than 50 crore targeted emails and 51 crore targeted SMSs have been sent to taxpayers to create awareness and provide guidance to them on various issues such as Aadhaar-PAN linking, ITR filing and other statutory filing, Bank validation issues, digital signature certificate, e-Verification of ITR etc.
• Educational videos/tutorial and banners to guide the taxpayers.

ACTIVE HELPDESK TO ASSIST TAXPAYERS:

• The e-filing Helpdesk team which worked in extended business hours and on 24x7 basis in last few days of peak filing period, has handled approximately 5 lakh queries from taxpayers in the month of July 2023.
• The support from the helpdesk was provided to taxpayers through inbound calls, outbound calls, live chats, WebEx and co-browsing sessions.
• The Helpdesk also supported resolution of queries received on the Twitter handle of the Department through extensive Online Response Management (ORM) by proactively reaching out to the taxpayers and assisting them on near real time basis

EASE OF DOING BUSINESS FOR START UPS: For Start-Up companies selected for scrutiny on the single issue of applicability of section 56(2)(viib), no verification on such issues to be done in consonance with Letter F.No.173/149/2019-ITA-1 dtd 10.10.2023.

TIN 2.0

• A new e-pay tax payment platform TIN 2.0 was made available on the e-filing portal replacing the erstwhile OLTAS based payment system (from 01.04.2023, the entire tax payment has shifted to TIN 2.0).
• This enabled the provision of user-friendly options for e-payment of taxes which currently include Internet Banking, NEFT/RTGS, OTC, Debit Cards, payment gateway, and UPI.
• The number of banks onboarded on TIN 2.0 is higher than ever before giving taxpayers a wider choice of banks for payment of taxes.

INITIATIVES UNDERTAKEN IN AIS MODULE

• AIS utility with modify feedback functionality enabled - To facilitate taxpayers to modify earlier feedback through the utility.
• AIS homepage on Compliance portal provides a bird's eye view of all the functionalities available on the Compliance portal - increased convenience for users
• New attributes for the "Tax Payments" section in AIS - Certain attributes like BSR code, Challan serial number etc were added to facilitate the taxpayer in filing ITRS.
• PAN-Aadhaar linking status display on AIS portal Status is displayed in the ' icon provided besides PAN number ease of compliance.
• Information Confirmation Functionality - To share taxpayers feedback on information gathered with information source and to take confirmation on taxpayers feedback/response.

PAYMENT OF TAXES REPORT: A new report related to the tax payments made by the taxpayer for a given Assessment year is made available under the 'Reports' section on Compliance portal which provides a consolidated summary of all the taxes paid for the given Assessment year.

FACILITY FOR FILING ONLINE FORM RELATED TO TDS: All the forms for application for deduction of tax at lower or nil rate can now be filed electronically and are processed electronically

REVAMPED NATIONAL WEBSITE OF INCOME TAX DEPARTMENT

In the year 2023, the Central Board of Direct Taxes (CBDT), Department of Revenue, Ministry of Finance, has taken many citizen-centric initiatives throughout the year. The CBDT has furthered initiatives through reforms by focusing on taxpayer outreach, assistance through active helpdesks, and has embraced faceless processes, showcasing a commitment to transparency and efficiency. The revamped national website and other digital initiatives have also contributed to an overall improved taxpayer experience.

Gross tax collections of Rs. 12.67 lakh crore mark a 17.7% YoY increase, with net collections reaching Rs. 10.64 lakh crore, reflecting a 23.4% growth. Notably, 58.34% of the budget estimates for the fiscal year have already been realized. Speedy processing and refunds are evident, with over Rs. 2.03 lakh crore refunded, and more than 3.43 crore Income Tax Returns (ITRs) processed within 7 days. The introduction of initiatives like TIN 2.0, pre-filling of ITRs, and updated returns has streamlined processes, resulting in 44.76 lakh updated returns filed.

The Central Board of Indirect Taxes and Customs (CBIC), Department of Revenue, Ministry of Finance, has achieved significant milestones in enhancing the efficiency and integrity of the Goods and Services Tax (GST) system. Goods and Services Tax (GST) not only completed six successful years of implementation but also broke all records of previous collections and achieved the highest ever tax revenue collection for April 2023 at Rs 1.87 lakh crore.

Leveraging data analytics and artificial intelligence, the CBIC has strengthened the registration process by implementing a risk rating system for applicants, ensuring thorough verification to prevent fraudulent entries. Additionally, geo-tagging of business locations, system-based suspension of registrations for non-filers, and risk-based processing of refund applications showcase CBIC's commitment to curbing malpractices.

To streamline the filing process, sequential filing of GSTR-1 and GSTR-3B has been mandated, promoting timely returns and smooth availability of input tax credit. Special drives against fake registrations, system-based mechanisms for intimation of mismatches, and a new functionality for unregistered persons to apply for temporary registration demonstrate CBIC's dedication to compliance.

Moreover, measures like transfer of balance in electronic cash ledgers, exemptions for small taxpayers, and facilitation of intra-state supply through e-commerce operators underscore the CBIC's efforts to support businesses and improve cash flows. Noteworthy is the extension of GST exemptions for satellite launch services and simplification of late fee structures.

On the customs front, CBIC has initiated regulatory and policy reforms, including the rationalization of customs duty rates and steps towards decriminalization. Technological advancements like ICEGATE 2.0 and the Anonymised Escalation Mechanism showcase a commitment to modernisation and user-friendly interfaces. Infrastructural initiatives, such as pre-gate processing facilities and modernisation of control laboratories, further enhance operational efficiency. The CBIC's efforts reflect a holistic approach to tax administration, aiming for transparency, Ease of Doing Business, and compliance.

The CBDT vide Circular No. 20/2023 dated December 28, 2023, has issued guidelines addressing challenges and providing clarity on the application of section 194-O of the Income-tax Act, 1961, particularly in a multiple e-commerce operator model such as the Open Network for Digital Commerce (ONDC). Section 194-O mandates that an e-commerce operator deducts income tax at a rate of one percent on the gross amount of sale of goods or provision of services facilitated through its digital or electronic platform. The circular comprehensively outlines various scenarios with illustrative examples, offering insights and resolving concerns raised by different stakeholders. Additionally, the Circular incorporates Frequently Asked Questions (FAQs) to further enhance understanding and address a spectrum of issues raised through representations from various quarters.