1

PROJECT REPORT
ON
SATISFACTION OF TAX FILER
TOWARDS FUNCTIONING OF IT
DURING PANDEMIC

SUBMITTED BY
SAIF AHMED JAMIL AHMED SHAIKH

BMS (FINANCE)SEM :VI

ACADEMIC YEAR: 2021-2022

PROJECT GUIDE
PROF.SUBHASH SHENGALE

SUBMITTED TO
UNIVERSITY OF MUMBAI
Anna Leela College of Commerce and Economics and
Shobha Jayaram Shetty College for BMS
Shashi Manmohan Shetty Higher Education Complex,
Buntara Bhavana Marg, Kurla East, Mumbai – 400070

March 2022
 2

PROJECT REPORT
ON
SATISFACTION OF TAX FILER
TOWARDS FUNCTIONING OF IT
DURING PANDEMIC
SUBMITTED TO
UNIVERSITY OF MUMBAI
Anna Leela College of Commerce and Economics and
Shobha Jayaram Shetty College for BMS
Shashi Manmohan Shetty Higher Education Complex,
Buntara Bhavana Marg, Kurla East, Mumbai – 400070
IN PARTIAL FULFILMENT OF REQUIREMENT
FOR THE DEGREE OF
BACHOLOR OF
MANAGEMENT STUDIES
(FINANCE)
SUBMITTED BY
SAIF AHMED JAMIL AHMED SHAIKH
BMS (FINANCE)SEM :VI
PROJECT GUIDE
PROF. SUBHASH SHENGALE

March 2022
 3

Bunts Sangha Mumbai

Anna Leela College of Commerce andEconomics
Shobha Jayaram Shetty College for BMS
Shashi Manmohan Shetty Higher Education
Complex,
Buntara Bhavan Marg, Kurla (E), Mumbai 400 070

Certificate
This is to certify that Ms./Mr. SAIF AHMED JAMIL AHMED
SHAIKH has worked and duly completed her/his project work
for the degree of Bachelor of management studies under the
Faculty of Commerce in the subject of FINANCE and his/her
project is entitled, “SATISFACTION OF TAX FILER
TOWARDS FUNCTIONING OF IT DURING PANDEMIC ”
under my supervision. I further certify that the entire work has
been done by the learner under my guidance.
It is her/his own work and facts reported by her/his personal
findings and investigations.

Project Guide: SUBHASH SHENGALE

Approved by-

BMS Coordinator: External Examiner: I/C Principal:

Date of Submission:
 4

Declaration by learner

I the undersigned Miss/Mr SAIF AHMED JAMIL AHMED

SHAIKH hereby declare that the work embodied in this project
work titled “SATISFACTION OF TAX FILER TOWARDS
FUNCTIONING OF IT DURING PANDEMIC”, forms my
own contribution to the research work carried out under the
guidance of Ms./ Mr PROF.SUBHASH SHENGALE Whenever
reference has been made to previous works of others ,it has
been clearly indicated as such and included in the
bibliography. I, here by further declare that all information of
this document has been obtained and presented in accordance
with academic rules and ethical conduct.

Name and signature of students,

SAIF AHMED JAMIL AHMED SHAIKH

 5

ACKNOWLEDGEMENT
To list who all have helped me is difficult because they are
so numerous and the depth is so enormous.
I would like to acknowledge the following as being idealistic
channels and fresh dimensions in the completion of this
project.
I take this opportunity to thank the University of Mumbai
for giving me chance to do this project.
I would like to thank my Principal, PRASHANT SHINDE,
for providing the necessary facilities for completion of this
project.
I would like to express my sincere gratitude towards my
guide, Prof. SUBHASH SHENGALE whose guidanceand
care made the project successful.
I would like to thank my College Library, for having
provided various reference books and magazine related to
my subject.
Lastly, I would like to thank each and every person who
directly or indirectly helped me in the completion of the

project especially my Parents and Peers who supportedme

throughout my project.
 6

INDEX

CHAPTE TITLE PAGE NO

R NO
1 Introduction 7
 meaning
1.1 History of income tax department 9
an india
1.2 Reliefs during covid-19 12
 GST 14
 Ministry of corporate 15
affairs
 PM cares funds 17
 Banking laws 19
 New filling E-portal 19
22
 News articles( ITD 2.0)
25-30
Review of litreture
2
3 Research methodology 31
 Primary data
 Secondary data
 Objectives 32
 Hypothesis 32

4 Data analysis and interpretation 33-47

5 Findings 48
6 Annexure 49-50
7 Suggestions 51
8 Conclusion 52
9 Bibliography 53
 7

INTRODUCTION:

Taxation imposition of compulsory levies on individuals or entities by governments.

Taxes are levied in almost every country of the world, primarily to raise revenue for
government expenditures, although they serve other purposes as well. To maintain the
harmony and proper collection and imposition of tax the government established a legal
body who levied and collect the taxes asper the income or expenditure of the individual.

MEANING:
In modern economies taxes are the most important sourceof governmental
revenue. Taxes differ from other sourcesof revenue in that they are compulsory
levies and are unrequited i.e., they are generally not paid in exchange forsome
specific thing, such as a particular public service, the sale of public property, or
the issuance of public debt. While taxes are presumably collected for the welfare
of taxpayers as a whole, the individual taxpayer’s liability is independent of any
specific benefit.

Depending upon the structure, residential status, income, expenditure, nature of

business, turnover ofbusiness, place of supply, etc the income tax department
frames a various rules (various rates, forms, dates, sites, portals) for conveneincy
of individual income tax department plays a major role for any countries
development and progress. the money which is collected by government through
variouse sources they invest in a countries welfare activities like hospitals, roads
,infrastructure ,railways ,variouse scheduled tribes and tribes castes. Here is all you
need to know about how to file ITR online. Before you file your taxes, you will
need your Form 16, provided by your employer, and any proof of investment.
Using that you cancompute the tax payable and refunds, if any, for the year. You
can download the IT preparation software from the IT department’s website. Once
you have all the documents ready, you can start the Income tax return filing
process .e-Filing Income Tax Return, TDS return, AIR return, and Wealth Tax
Return can be completed online on https://incometaxindiaefiling.gov.in. E-filing
your return has obvious advantages like the fact that you won’t have to deal with
the hassle of paperwork and waste time sorting through it all. You can simply log
on to the secure website and e-file your return .This government website also has
provisions for you to submit returns, view form 26AS, outstanding tax demand,
CPC refund status, rectification status, ITR – V receipt status, online application
tools for PAN and TAN, e-pay your tax and even has a tax calculator.
 8

EXISTING TAX
STRUCTURE
IN INDIA

INDIRECT
DIRECT TAX
TAX

CEBTRAL VAT(SALES
CUSTOM SERVICE TAX OTHER TAX INCOME TAX
EXCISE TAX)
 9

CHP: 2 HISTORY OF INCOME TAX

DEPARTMENT FUNCTIONING:

The word ‘tax’ is derived from the Latinword taxare or taxo. It means
‘toassess the worth of something’. Taxes are imposed by government for
the useand service of the State. They are levied and collected by the
State for the purchase or sale of merchandise or a service. Taxes provide
revenue to the state, and is therefore one of the most significant
aspects of any system of administration by any form of government.

The strength of an economy depends upon how good thetax system is. A just tax
system can propel the economicgrowth of a country and lead to its prosperity.
This in turns makes its citizens happy and more productive. An efficient taxation
policy leads to growth in GDP; it is considered sound if it performs allocative,
distributionaland stabilization function in the economy.

There are two types of taxes – direct and indirect. Direct taxes are those that an
entity remits to the government directly, and include income tax, property tax, etc.
indirect taxes are those that an entity remits through third parties. Service tax is an
example of indirect tax imposedby the government of India.

Income is the money that an individual or business receives in exchange for

providing a good or services. A formal tax system was in existence in India since
the time of Maurya dynasty. The higher class of citizens contributed 1/6th of their
income as tax. It is said that even before the Mauryas, tax was mentioned in Manu
Smruti, one of the most ancient scriptures of India. The subsequent Mughal
invaders brought with them their owntaxation system. The infamous Jezia was a
tax imposed onthe non-Islamic people of the land. In India, it was abolished by
Akbar.

The income tax as we know today was first introduced inIndia in 1860 by the
British. It was introduced to compensate for the losses sustained by the
government due to the rebellion of 1857. Income tax is defined as theannual
charge levied on both earned income (wages, salaries or commission) and
 10

unearned income like dividends, interest or rent. In addition to financing a

government’s operations, progressive income taxation is designed to distribute
wealth creation more evenly in a population and to serve as buffer in case of
fluctuations inthe economic cycle.
There are two basic types of income tax: personal income tax and corporation income
tax.The Income Tax Act was passed in India in 1886, and there have been constant
revisions and refinements in the Act since then. After the first World War, a new
Income Tax Act was passed, in 1918, again to counter the residualeffects of economic
devastation caused by the war.

This income tax Act was in place till 1922, when it was replaced by another Act.
After 40 years, and 15 years after India gained freedom from the British, the
income tax Act was modified again. The current Income Tax Act has been adopted
in 1961, and bought into force with effect from April 1, 1962. It encompasses the
whole of India, including Sikkim, Jammu and Kashmir. The Central Board of
Revenue bifurcated and created a separate Board for Direct Taxes called as the
Central Board of Direct Taxes under the aegis of Central Board ofRevenue Act,
1963.
Currently, there are five broad heads under whichincome is taxed
by the govt. of India:

 Income from salary

 Income from business or profession
 Income from capital gains
 Income from property
 Income from other sources
Each successive government amends the Act with an aimto finance government
operations, and to try and distribute wealth more evenly. A noticeable feature of
theIncome Tax Act of India is that agricultural income in India is not taxable.
Income tax in India (and all other countries) is assessed annually for the previous
financial year.
 11

India currently has a three tier setup for taxation. The central government and the state
government can both impose tax. The State government in turn can delegate taxation to
the local governing bodies like the municipalcorporations and gram panchayats. It is
said that that theIndian tax system is one of the most complex in the world, including
the likes of income tax, wealth tax, property tax, gift tax, sales tax, VAT, custom duty,
exciseduty (now replaced by GST), corporate tax, income tax and a plethora or other
taxes? Indeed, it is one of the reasons why there is a high demand in India for income
tax consultants, GST consultants, auditors, and other professionals.

During the 19th century the prevalent idea was that taxes should serve mainly to
finance the government. In earlier times, and again today, governments have
utilized taxation for other than merely fiscal purposes. One useful way to view the purpose of
taxation,
attributable to American economist Richard A. Musgrave, is to distinguish between objectives of
resource allocation, income redistribution, and economic stability. (Economic growth or
development and international
competitiveness are sometimes listed as separate goals, but they can generally be subsumed
under the other three.) In the absence of a strong reason for interference,
such as the need to reduce pollution, the first objective, resource allocation, is
furthered if tax policy does not interfere withmarket-determined allocations.

The second objective income redistribution, is meant to lessen inequalities in the distribution of
income and
wealth. The objective of stabilization implemented
through tax policy, governmentexpenditure policy, monetary policy, and
debt management is that of maintaining high employmentand price stability.
 12

CHP: 3 RELIEFES GIVEN BY GOVT TO TAXPAYER:

DATES EXTENTION:
Indian FM announced economic stimulus plan, and relaxation of due dates due
to the issues faced by the taxpayers & companies amid complete lockdown in
Indiato control COVID-19 (Corona Virus). Covering various statutory,
regulatory compliance such as Income Tax, GST, Corporate Affairs, Banking
Charges,PM Cares Fund.

1. May 13th 2020 : Updates from economic stimulusplan.

2. Jun 12th 2020 : Updates from 40th GST Councilmeeting.

3. Jun 24th 2020 : Extension of time limits under theIncome-tax Act

(Notification No.35 /2020)
4. Jul 29th 2020 : Extension of time limits under theIncome-tax Act
(Notification No.56 /2020)
 13

5. Sep 30th 2020 : Further extensions in IT Filing Dates for FY 2018-

19 and Company Compliance

6. Dec 30th 2020 : Further extensions in IT Filing Dates for FY 2019-

20 and Company Compliance
7. May 02nd 2021 : Further extensions in IT FilingDates for FY
2019-20 and GST Compliance
8. Dec 30th 2020 : Further extensions in IT Filing Dates for FY 2019-
20 and Company Compliance
1. May 02nd 2021 : Further extensions in IT FilingDates for FY 2019-
20 and GST Compliance.

Announcements in 2021
(latest)Income Tax

1. The due date for Filing Income Revised or BelatedTax Return for FY
2019-20 is extended to31st May 2021 from 31st Mar 2021.

2. The due date for filing appeal to Commissioner (Appeal) (for which the
last date is after April 1st 2021) is now extended to 31st May 2021 or
date specified in the section whichever is later.
3. The due date for filing Income Tax return in response to notice u/s
148 (for which the last dateis after April 1st 2021) is now extended to
31st
May 2021 or date mentioned in notice whichever islater.
4. Payment of tax u/s 194IA, 194IB and 194M andFiling of Form
26QB, 26QC and 26QD which is required to be paid/filed before
30th April 2021 isnow extended to 31st May 2021.
 14

5. GOI extended the time limit for payment

under Vivad se Vishwas Act from 30th Apr 2021to 30th June, 2021
6. ITD made technological changes in data sharingformats by switching
from XML to JSON..
The due date for Linking PAN and Aadhar is extended to 30th
Jun 2020 ,31st Mar 2021 30thJune 2021 from 31st Mar 2020.COVID19
affected travelers, NRIs,taxpayers who have 'Anomalies' against their

residential status in India should report to Principal IncomeTax Commissioner,

(Intl. Taxation) to get relief, before Mar 31st
GST

1. The due date for filing GSTR 1 IFF (Monthly) forquarterly tax payers is
extended by 15 days i.e 28/05/2021 from 13/05/2021

2. The due date for filing GSTR 1 (Monthly) is extended by 15 days i.e 26th
May 2021 from 11thMay 2021.

3. The due date for filing form GSTR 4 for FY 2020-21 is extended to 31st
May 2021 from 30th Apr
2021

4. Govt announced Reduction in rate of interest dueto COVID for the

delayed GST Payments from normal rate of interest of 18% per annum
to a lower rates 0/9/18 % that increase by the numberof days.Govt
announced GST Late waiver for 30 days beyond the due dates for Mar,
Apr 2021 GSTR 3Bcovering both monthly and QRMP businesses.
5. Get the Monthly Compliance Schedule.

6. Private Limited Companies, OPC & LLPs who arerequired to file GST
Returns with DSC are allowedto file with EVC from 27th Apr 2021 to 31st
May 2021. Taxpayers who wants to opt for Quarterly GSTFiling for FY
2021-22 can change from 1st Feb2021 to 30th Apr 2021.
 15

Ministry of CorporateAffairs

1. The due date for filing MSME-1 (Filing of Returnsinrespect of

Outstanding Payments to MSME's @ ROC) for the period Oct 2020 to
March 2021 is 30thApr 2021.
2. Per MCA new Circular . every Company must use Accounting Software
having "tamper proof" AuditTrail from FY 2021-22 is enabled for
Audit Trail Today.
The due date for Filing Income Tax Return for FY 2019-20 is extended
to 10th Jan 2021 from 31st Jul2020 *
1. The due date for Filing Income Revised or BelatedTax Return for FY
2019-20 is extended to31st May 2021 from 31st Mar 2021.

The due date for Linking PAN and Aadhar is extended to

30th Jun 202031st Mar 2021 30th June 2021 from 31st Mar 2020.
The due date for Filing Income Tax Return for FY 2018-19 is extended to 30th Jun
2020 31st Jul 2020 30th September 2020 30th November 2020 from 31stMar
2020
2. The due date for TDS, TCS Returns by deduct orother than Govt.
for Q4 FY 2019-20 is 30th Jun 2020 31st Jul 2020.

3. The TDS rate on payments for contract, professionalfee, rent,

commission, dividend, brokerage etc shall be reduced by 25% of
existingrates. Now this TDS rates reduction is further extended upto Nov
30th 2020.

The date for making investments & payments forclaiming deduction under Section 80C
(LIC, PPF, NSC etc.), 80D (Mediclaim), 80G (Donations), extended to Jun 30th 2020 31st July
2020 for FY 2019-20 June 2021 from 31st March 2020 The due date
for Filing Income Tax Return for FY 2018-19 is extended to 30th Jun
2020 31st Jul 2020 30th September 2020 30th November 2020 from 31st
Mar 2020

4. The due date for TDS, TCS Returns by deductorother than Govt. for
Q4 FY 2019-20 is 30th Jun 2020 31st Jul 2020.
 16

5. The TDS rate on payments for contract, professional fee, rent, commission,
dividend, brokerage etc shall be reduced by 25% of existingrates. Now this
TDS rates reduction is further extended upto Nov 30th 2020.
6. The date for making investments & payments forclaiming deduction
under Section 80C (LIC, PPF, NSC etc.), 80D (Mediclaim), 80G
(Donations), extended to Jun 30th 2020 31st July 2020 for FY 2019-20
The date for making investments under Sec 54*, 54GB for claiming
re-investment benefits, extendedto 30th Sep 2020 for FY 2019-20 All
delayed payments of advance tax, self assessment tax, TDS, TCS,
equalization levy, STT, CTT made between 20th Mar 2020 and30th
Jun 2020 31st Jul 2020 will be charged at reducedinterest rate i.e., 9%
p.a instead of 12% p.a

7. Waiver of interest u/s 234A where self assessmenttax is up to Rs 1Lakh.

8. The due date for issue of notice, intimation, order, investment in tax
saving instruments, investments for roll over benefit of capital gains
under Income Tax has been extended to 30th Jun2020 31st Jul 2020
9. Due date for Form-16 generation has been extended to 15th Aug 2020 to
give an opportunityforthose employers who are unable to meet the
timelines.
 17

PM Cares Fund

Applicable to Individuals and other than Individuals

1. 100% deduction allowed on donations to the PM- CARES Fund (*
later updated)

2. The limit on deduction of 10% of gross income is notapplicable for

donations made to PM CARES Fund (* later updated)
GSTLatest as on Oct 01st 2020

1. GSTR-9 & GSTR-9C are extended from 30th Sep2020 to 31st

October 2020 Per 40th GST Council meeting held on Jun 12th
2020.recommended to have a reduction in Late Fee for Past
GST Returns and other measures to reduce the compliance
burden

1. Late fee & Interest waived off for NIL

Returns for the period of July 2017 to Jan 2020 iffiled between
July 1 2020 to Sep 30 2020
2. Max late fee capped @ Rs. 500/- per return if anytax liability for
the period of July 2017 to Jan2020 if filed between July 1 2020 to
Sep 30 2020
3. Late Fee & Interest are waived off for GSTR 3B Filing for the months
of May, June, & July 2020 forthe taxpayers having turnover up to Rs 5
Cr if filedbefore 30th Sep 2020

DUE DATES

1. The due dates for filing Feb, March and April GSTreturns has been
extended till the last weekof 30/06/2020 for those whose turnover is
below 5 Crores.
2. Interest will be charged at reduced rate of 9% p.a instead of 18% p.a
for the companies with turnovermore than Rs 5 crores. No Late Fee and
 18

Penalty willbe charged if complied before June 30th 2020

3. The due date for filing Annual return for FY 2018-19is extended to 30th
Sep 2020 from 31st Mar 2020
for Composition taxpayers has been extendedto15th Aug 2020 31st
Oct 2020
4. The due date for opting into composition scheme hasbeen extended to 30th
Jun 2020 from 31st Mar2020.
Ministry of CorporateAffairs

Applicable to Private Limited, OPC and LLP

1. No additional fee shall be charged for late filing during a

moratorium period (01/04/2020 to 30/09/2020) in respect of any
document, return, statement etc required to be filed in MCA system
irrespective of its due date
2. Additional time of 6 more months given to newlyincorporated
companies for declaration of commencement of business in eform
20A. Now, itcan be filed up to 1 year from the date of
incorporation of company
1. A company director who does not comply with minimum residency
requirement of 182 days or more in India shall not be considered as
violation
2. Applicability of CARO-20 which was supposed tobe effective from FY
2019-20 has been shifted to FY 2020-21.
3. The mandatory requirement of holding Board meetings shall be extended
by a period of 60 daystillnext 2 quarters i.e., till 30th September 2020
4. Company and LLP Forms like Director KYC (DIR-3KYC), DPT-3
(Annual Return), INC 22A, holding EGM, Registration as Independent
Director, Form 11etc can be filed upto 30th Sep 2020 31st Dec 2020
without any Late Fee.
5.
 19

Banking Laws

Applicable to all who has bank account

1. Debit card holders can now withdraw cash fromany bank without
any additional charges for next 3 months.
2. There will be a complete waiver of fees chargedbythe banks for not
maintaining the minimum balance

3. There will be reduction of bank charges for digitaltrade transactions

for all trade finance consumers

Other Announcements

1. Due Date for filing Employee Provident Fund (EPF) electronic challan
cum return for the month of March is extended to 15th May 2020 from
15thApr 2020
2. Rs 3 lakh crores. Collateral-Free Automatic Loans for Businesses,
including MSMEs. To pay after 12 months of moratorium
3. Pending refunds to co-operatives, charitabletrusts, non-
corporates will be processed immediately to relieve Statutory
PF Contribution by Employer and employee hasbeen reduced
to 10% from 12% for May, Jun, Jul 2020.

4. The difference between Manufacturing and servicesector is eliminated

and the long-due new MSME definition is expected to be approved
soon. Gives opportunity for certain MSMEs not to lose the benefits
that they used to enojoy per old regime dueto increase in the
revenue / investment.
 20

1. Statutory PF Contribution by Employer and employee has been reduced to

10% from 12% forMay, Jun, Jul 2020.

2. The difference between Manufacturing and service sector is

eliminated and the long-due new MSME definition is expected to be
approved soon. Gives opportunity for certain MSMEs not to lose the
benefits that they used to enojoy per old regime dueto increase in the
revenue / investment

3. .Income Tax Department is set to launch a new 'taxpayer friendly' income tax filing portal on
June 7 as the Central Board of Direct Taxes said earlier this month that
the existing portal will be phased out after a
'blackout period' of six days beginning next month. An IT Department communicate on May 19
 21

said the 'transition' from the old website - www.incometaxindiaefiling.gov.in to the new -
www.incometax.gov.in - will
be completed and madeoperational from June 7. It further stated, "In preparation of this launch
and for migration activities, the existing portal of the department
www.incometaxindiaefiling.gov.in would not be available for a brief period (taxpayers as well
as external stakeholders) of six days from June 1 to 6.
The Central Board of Direct Taxes urged the taxpayers tobe patient during this
transition, addingany compliance dates won't be fixed during this timeto ensure
'no inconvenience to taxpayers'
Various features of new portals:

 Information available on mobile (mobile app)

 Quick interaction of portalQueries
handling procedure
 Online payment system for payments
Easy availability of refunds
 22

The government has so far paid Rs 164.5 crore to Infosys between January 2019 to June 2021
for developing the portal. Sitharaman had on June 22 called a meeting with keyofficials of
Infosys to review the issues on the portal in whichthe ICAI representatives highlighted the
issues faced by taxpayers and tax professionals on the portal.
the new Income Tax Department website, which has beenmarred by glitches, has successfully
received over 25 lakhreturns, more than 3.57 crore unique logins and has allocated over 7.90
lakh e-PANs, according to the latest official data on Thursday.
The portal was launched on June 7 with the new domain name www.incometax.gov.in, but it hit
rough weather as anumber of its functionalities did not function properly.
Official sources in the tax department, however, say that the e-filing 2.0 website is now
"gathering pace and processes aregetting smooth".

According to official data accessed by PTI, the e-filing

website has seen 25,82,175 Income Tax Returns (ITRs) being filed successfully, registered
4,57,55,091 logins, and 3,57,47,303 unique taxpayers over the last two weeks time.A total of
80,23,266 ITRs have been drafted, over 6.07 lakhforms have been drafted out of which
5,51,150 were filed atthe portal, the data stated. The website also received 69,45,539
successful requests for linking of the Permanent Account Number (PAN) with Aadhaar,
while it allocated 7,90,404 e-PANs over the platform.

A total of 2,92,601 digital signature certificates or DSC have

also been received at the portal during the last two weekstime period, it said.

"The functionalities are getting smoothened now, and they

are activated one after the other, as is evident by the figuresthat
the new portal is processing", official sources said. "We hope that
the website will be absolutely normal to use sooner than
later.
 23

INFOSYS CEO SALIL PAREKH’S RESPONSE

Infosys CEO Salil Parekh said he was aware of the difficulties and said the team is doing
everything to ensure the smooth functioningof the portal.He told the finance minister that over
750 team members are working on fixing the glitches related to the income tax e-filing portal,
adding that Infosys CEO Pravin Rao is personally overseeing this project.Salil Parekh also
assured that Infosys is working expeditiously to ensure a glitch-free experience for taxpayers
on the portal.After the meeting, senior executives from the company held discussions with
officials in the finance minister and the CentralBoard of Direct Taxes to find out problems that
taxpayers are facing on the portal.

| Nearly 26 lakh ITRs filed on new IT e-filing

portal

Infosys gets time till September15tofixincometaxportalglitches

Finance Minister Nirmala Sitharaman told Infosys CEOSalil Parekh that she was deeply
disappointed over glitches in the new tax filing portal.

India Today Web Desk

New Delhi August
24, 2021
UPDATED: August 24, 2021 16:21 IST

Glitches in the new income tax e-filing portal have not been fullyfixe over two months after
it was launched.
Major IT services provider Infosys has got a fresh deadline to fix glitches in the income tax e-
filing portal after its CEO Salil Parekh met with Finance Minister Nirmala Sitaraman on
Monday.
The finance minister said she was deeply disappointed over glitches in the new tax filing portal
and ordered the IT vendorto fix all the issues by September 15.
 24

WHAT FM NIRMALA SITHARAMAN SAID?

Nirmala Sitharaman summoned Infosys CEO Parekh to explainwhy the new income tax e-
filing portal has not been fixed fully after such a long time.
It has been more than 2.5 months since the new income tax e- filing portal was launched.
Earlier, the IT services provider said itwould resolve all pending glitches within a few weeks.
Nirmala Sitharaman also said Infosys needs to devote more resources and step up efforts to
ensure the portal is deliveredwithout glitches.
“The finance minister demanded that the issues faced by taxpayers on current
functionalities of the portal should be resolved by the team by 15th September so taxpayers
and professionals can work seamlessly on the portal,” the ministrysaid in a statement.
Nirmala Sitharaman also informed Salil Parekh about the difficulties taxpayers were facing due
to the glitches
on the portalincluding delays in tax filing.

the website will not be available for a certain amount of time between Saturday and Sunday.
As per a ticker on the new incometax portal, "Alert: Website will not be accessible due to
scheduledmaintenance activity from Saturday 23rd Oct 10.00PM to Sunday24th Oct
10.00AM IST".

A month after its launch in August 2021, the site was not accessible and the
message that appeared once landing onthe was that it was under maintenance.

Previously, the finance minister Nirmala Sitharaman had given time till September 15, 2021
to Infosys (the company that creatednew income tax portal) to fix all the glitches on the
websites. Dueto recurrent glitches, many chartered accountant associations, taxpayers asked
the government.
 25

2.REVIEW OF LITRATURE
1. The fiscal policy of both developed and developing countries has put tax avoidance

more firmly in the recent times.

2. If the tax issues are absent in CSR agenda, companies can make tax avoidance by
unfair Means. Tax avoidance has negative relation with tax strategy in CSR.
The above conclusions can be commented in various ways. Tax avoidance is one of the
reason but not the sole reason for improving the revenue. In addition making tax strategy in
CSR agenda cannot give guarantee to mitigate tax avoidance.
Sharma & Singh (2017) canvassed income tax responsiveness of India in post
Liberalisation period. Data from 1991 to 2015 has been used for the research work. Authors
Applied regression model for data analysis after using unit root test. Income tax revenue
and GDP was taken as explained and explanatory variable respectively.

Geetanjali & Venugopal (2016) cracked down the impact of direct tax contribution on
GDP.
The authors took time series data from 2000-2016. The test of stationary, normality, serial
correction has been employed. The OLS method is used to interpret the results.
Regression results show the significant impact of net collection of direct taxes on GDP. This
research work suggests that “Policy makers have to therefore emphasize on tax evasion and
tax collection.”
Musa et al (2016) contemplated tax buoyancy and elasticity in Nigeria. The authors applied
standard multiple regression with vector error correction model (VECM) model.
Researchers took aggregate tax revenue as endogenous variable and national income,
government
expenditure, external grant, inflation rate as exogenous variable along with a dummy
variable.
This paper concluded that the “aggregate revenue is relatively elastic and significantly
buoyant”.
 26

Sharma (2016) wrote about the tax system and tax collection of ancient India. The book
reflects a detail idea about philosophy of taxation, ways and means of tax collection in
ancient India. The author opined that revenue collection was core aspects of administration
and governance in that period. Further the study concluded that systems, followed in respect
of taxation and revenue collection in ancient India, are still relevant, and if adopted, may
provide the contemporary fiscal system with a humanitarian face

Bagchi (2013) made a theoretical study on priorities of a tax programme, pointed that the
objective of maximising the yield of direct tax raising tax rate, widening tax base and curve
evasion. The focus of a tax reform must suggest the means for talking problems of black
money, tax evasion and tax arrears as well. The author also indicated that the corporate
taxation should be in principle oriented to promote efficiency rather equity.
The paper concluded that even with a widened base and the best of intentions, it may not be
possible to achieve the desired results merely though the income-tax or, for that matter,
through direct taxes alone.
Yusuf & Huq (2013) analysed tax buoyancy of major taxes in Bangladesh. The authors
Used time series data from 1980 to 2011. The authors applied exponential smoothing
method and used dummy variable in slope. The research work employed Johansen Co-
integration test for
long term relationship, Augmented Dickey Fuller test for unit presence of unit root, VEC
Residual Correlation LM Test for auto-correlation or serial correlation and Jarque-Bera
statistics
to test the normality of residuals.
The above study highlights the revenue performance of the country. The author concluded
that “with an uninterrupted economic growth and changes triggered by the discretionary
measures, revenue
structure of the country experience the structural shift where the role of Income Tax and
VAT hasbecome more prominent than that of the Customs Duties”.
 27

Jenkins & Newell (2013) critically examined the connections between corporate social
responsibility, tax and development. This paper further focuses on tax payment and tax
evasion, the role of taxation on development of the state. The impact of tax evasion and tax
avoidance on government is also being studied. They author opined that the law makers
should provide a CSR platform where tax strategy is key. The paper also highlights the
excess reliance on corporate tax revenue by the developing countries. The authors arrived
different conclusions which are as follows.
Lucotte (2012) made an empirical study on inflation targeting and tax revenue
performance
in 59 emerging countries. The author investigated whether adoption of inflation targeting in
emerging economies has encouraged governments to increase domestic tax revenue.
Propensity score matching tool has been used to analyse the data. The independent variable
Is interest which is a binary variable, taking the value one if the country operates within an
share of GDP. The paper concludes that adoption of monetary policy framework by
maintaining inflation low levels encourages the government to improve collection of
domestic tax revenue. The author found most of the attributes on the level of total public
revenue are positive and highly significant and larger in magnitude.

Yi (2012) synthesized the relation of democracy in tax programmes and vice versa. It is
hypothesized that affects of taxation on democracy tend to be relatively stronger and event
history model is being used for data analysis purpose. A pooled time series dataset from
1970 to 2000 of thirty countries is taken. The author found that taxation has conditional
impact on democratization. It is critiqued that tax-GDP ratio has less impact than
tax-EXP ratio to fit the second hypothesis which is effect of income inequality on taxation
reforms.
This article can be annotated on the ground that democracy structure and/or income
inequality are the sole variable for taxation of a country as other variants as economic
Policy and fiscal condition are ignored.
 28

Thomas (2012) published a paper which shows the elasticity taxable income with tax
Reform in New Zealand from the 1986 reform. The author used Auten and Carroll (1999)
model to
analyse the elasticity. It is argued in support of model that it has also been followed in
Several other studies, including: Sillamaa and Veall (2001) for Canada; Hansson (2007) for
Sweden;
and Auten, Carroll and Gee (2008) for the US. The author regressed the change in the
logarithm of taxable income against the change in the logarithm of the ‘net-of-tax rate’ (one
minus the marginal tax rate) as well as a number of additional control variables. The
empirical model is as follows:
These results imply a significant behavioural response to tax rate changes well in excess
Of that implied by standard labour supply elasticity estimates, and suggest that the welfare
costs of taxation in New Zealand are larger than may have previously been considered.

Acharya (2011) diagnosed the tax elasticity of India for the period 1991-2010.
Tax elasticity is calculated by dividing Marginal Tax Rate to the Average Tax Rate.
The author has employed regression analysis to the time series data. Natural Log Total
Direct Tax Natural Log Total Indirect Tax and Natural Log Gross Tax is taken as
Regress and and Natural Log GDP at current prices factor cost Natural Log GDP at current
prices market price are taken as regressor. The author used “Discretionary tax measures
(DTMs) to describe changes in the tax system which includes changes in statutory tax rates
tax bases, tax allowances and This research work found that direct tax elasticity is 1.62
percent, elasticity of indirect tax is0.89 percent and gross tax elasticity is 1.20 percent.
The author opined that “Tax Elasticity of Direct tax is high at 1.62 compared to other taxes
and thus showing that change in taxes has been higher than the changes in tax base and thus
showing that more and more people from the tax base are paying more taxes. This is a
healthy sign and can lead to lowering of effective tax rate with time”
Palande (2011) dig out different income tax problems and recommends certain suggestions
for improvement of income tax revenue, efficient compliance, administration etc.
 29

This paper deals with different problem variants like lower tax-GDP ratio, greater reliance
on indirect taxes, exemptions of agricultural income, widening of tax base etc. The author
emphasised on the simplification of tax structure which ultimately accelerate tax
compliance, widening of tax base to increase tax revenue, improving of tax administration
to strengthen tax system, minimising compliance cost as an austerity measure.
It is accented that nullifying the distortions of economy is the key when tax reforms
took place. It is added that simplifications of tax structure can yield in win-win way for both
state and tax payer. Exemptions for bothsenior citizens and handicapped should be
eliminated including interest on house loan. The author argued that deduction of interest in
respect of housing loan is not a beneficial multiplier for industries like steel, cement, brick
making, tile, wood, sanitary etc. The author strictly concluded that no government should
take money from the people more than what itneeds for genuine capital and revenue
generations.
30
 31

CHP:3Research Methodology

PRIMARY DATA

The primary data are those, which are collected afresh andfor the first
time, and thus happened to be original in character. We can obtain primary
data either through observation or through direct communication with
respondent in one form or another or through personal interview.

Method used in primary data collection:

Cluster sampling
Convenient samplingEmail
survey Telephone survey

SECONDARY DATA

The secondary data on the other hand, are those which have already been collected
by someone alse and which have alreadybeen passed through the statistical
processes. When the researcher utilizes secondary data then he has to look into
various sources from where he can obtain them. For e.g. books,magazine,
newspaper, internet, publications and reports.

In this study data have been taken from various secondarysources like:
 Internet
 Books
 Magazines
 Newspapers
 Journals
 32

OBJECTIVES:
1. To know the functioning of income tax departmentduring such kinds of
pandemic situation.
2. What measures IT had adopted for convenience oftax payer.
3. Individual reaction on such measures.
4. Government supports for IT measures.
5. Benefits availed by individual.

HYPOTHESIS:
H1 : Government are provide most effective measures to tackle such
covid-19pandemic.
H2 : New income tax portal 2.0 needs to more monitoring ,
organizing, and effective necessaryremedial measures.
 33

CHP: 4 DATA ANALYSIS AND PRESENTATION:

On the above data representation shows that for all respondents 50% are
belongs to25-35 age group, whichshows that 50% of all responses are this age
groups.
 34

On the above representation of data we can say that 40.9%are belongs to self
occupation which is highly ratedand lower occupational rate are business man
with a 13.6%.
 35

With respect to the all responses that I have been receiveddue to some age porpose
with show in above too,the people are educated and hence they had file there
returns for themselves i.e 54.5% and remaining due to some complexity and busy
scheduled file by others.
 36

The above pie chart shows that 40.9% respondent are good opinion about the
functioning of IT 18.2% responses opinion are excellent, and 27.3%
consideredgood and remaining are satisfactory.
 37

Following are the various responses of the above:

Networkfacility 11 2 4 5

Sites 5 7 10 -
functioning

approvals 4 12 6 -
 38

With above reference about 77.3% are agreed that morework are done during
this pandemic.
 39

On the above representation of the data its shows thatapproximately 68.2%

people are not agreed that income tax sites are running normally as they are
working on normaldays and remaining had different opinion.
 40

Inferences are below:

Extended 18 3 1 -
dates

Refunds 7 5 10 -

concessions 7 4 11 -
 41

On the above representation we are conclude that government need some

effective measures for solvingsuch kinds of situation.
 42

As above response we concluded that respondent considered thatEarlier sites functioning

more effectively.
43
44
45
 46

Incompleted and wrong information(99% are stronglyagree)

Tediouswork(100%)means need to improvise
 47

As above graphical representation the maximum

Numbers of individual not satisfied with the functioningof Infosys group companies
performance .

So as per above information which I had collected during

Our survey the hypothesis 2 proved that govt is not successful for their motives , and
new sites not working properly.
 48

5.Findings of the study

After analysis of the data these are following findings were emerged

 70% respondants are male and 30% are female .

 Majority of the respondents 50% are belongs to25-35 age group, whichs hows that 50% of
all responses are this age groups.
 13.6% response relate to business men category ,22.7% relate to professionals,40.9% relate
to self employed and rest are others
 45.5% respondants are filings returns by others and 54.5% respondants are filing by their
own
 40.9% of respondants thinks that functioning of inome tax during pandemic was average
while 27.3% of the respondants thinks that it was good
 Majority of respondants faced network issue while filing ITR
 68.7% repondants agreed that site was not functioning normal as it was before
 Majority of the repondants agreed that income tax had taken effective measure as they have
extended dates
59.1% respondants thinks that goverment needs some extra efforts for proper working during
such kind of Pandemic.
 49

6.Annexure

1. age of the respondent.

18-25
25-35
35-45
45 and above
2. you are belong to which occupation.
Business men
Self employed
Profession Other
3. are you filling your returns itself?or other are filled on your behalf?
Self
Other
4. what is your opinion about functioning of income tax department?
Good
Average
Excellent
Satisfactory
5. what kind of difficulties you face during this pandemic for fillingreturns .or other
queries?
Proper network facilitiesSites
functioning
Proper approval and scrutiny
6. Are you think it become plethora work due to pandemic?Yes
No
7. May be sites of www.incometax.gov.in (new portal)working
Properly.
Yes No
May be
Other
8. Deos the income tax department success his effective measures?
Extended dates
Refund returns
 50

Concession in variouse tax rates

9. did earlier sites is far better then new 2.0 income taxPortal?
Yes
No
10. Are you think that the govt needs some extra efforts for properworking
during such kind of pandemic?

Yes No
Maybe

11. there is no need to change the earlier version of income taxPortal.what is

your opinion?
Open ended questions

12. basic issues faced by tax filler?

Incomplete and wrong data
Tedious
Non
applicabi
lity of
various
IT forms
Downlod
issue

13. What is your opinion about Infosys working on such glitches?

Good
Better
Worst No
ideas
 51

7. SUGGESTIONS
1.Previous portal is more efficient.
2. Govt brings suitable changes with help of concerned competentauthorities.
3. Scrutiny of software
4. Properly grievance handling procedure without any delay.
5. Bring old portal.
6. Govt is successful for their effective measures.
 52

8. CONCLUSION
With respect to this project the information which Imentioned, what I comprehend is
that the government provide an good initiate during pendamic.(H1:proved)
Newportal is not succesfull for working (H2:proved)
9,82,71,116
Individual Registered Users

4,15,69,670
No. of returns filed (AY 21-22)

3,59,59,714
No. of returns verified (AY 21-22)
2,75,07,462
No. of verified ITRs (AY 21-22) processed

The conclusion that I had drawn above is purely the data that I had collected through Primary
and secondary data responses and on my personel analysis skills
 53

9.BIBLIOGRAPHY:
News paper
 Times of india
 Hindustan time
Income tax sites
 www.hindustantimes.com
 www.indiatoday.in
 www.fb.org
 `www.ndtv.in
Textbook
 International monetory fund sites Books
 Manan prakashan (direct tax) T.Y.B.M.S
Semester 5
 Sheth publications - direct tax