In order to make the income tax systems work more reliably, the Central Board of Direct Taxes (CBDT) has awarded the Taxnet 2.0 project to Bharti Airtel. As per a press release by CBDT on July 19, 2024, this collaboration with Airtel is aimed at providing network connectivity, facility management services, and video conferencing solutions to the Income Tax Department.
Experts say that this project can make the e-filing ITR portal work faster, as currently it is plagued with various network-related glitches and issues.
“Recently many taxpayers faced issues while using the online facility for ITR filing as opening each page of the tab was taking substantial time. We can expect that in the next season of ITR, taxpayers may find the e-filing portal’s interface to load at a faster speed,” says Mihir Tanna, Associate Director-Direct tax, S.K Patodia & Associates LLP.
However, it is unlikely that Taxnet 2.0 will help taxpayers who are chasing the deadline of July 31 this year. Going forward user experience with the income tax portal is likely to improve in future seasons of ITR filing.
Read below to find out what other tax services is going to improve due to the Taxnet 2.0 project.
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How the Taxnet 2.0 project aims to help you
In comparison to the Taxnet 1.0 project, Taxnet 2.0 aims to ensure smooth and uninterrupted access to the income tax systems including its functionalities and websites. This feature is especially important because at present due to the high volume of requests, the income tax e-filing portal is experiencing glitches and congestion and some taxpayers are even experiencing a slowdown in processing of requests, as per various social media posts. According to a social media post by the Income tax department on July 19, 2024, the key features of Taxnet 2.0 include:
- Enhanced security by utilising state-of-the-art technology to protect sensitive data and ensure privacy.
- Higher reliability by delivering consistent and dependable service to departmental users across the country.
- Seamless connectivity by ensuring smooth and uninterrupted access to departmental users.
- Enhancing tax services for citizens and businesses alike.
“This is a state-of-the-art technology, providing secure, reliable and seamless connectivity services and marks a significant advancement over the current Taxnet 1.0 project. It will go a long way in enhancing the digital infrastructure of the Department,” said CBDT in its press release.
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What might be the impact of Taxnet 2.0 on various income tax functionalities and features?
According to an article by ET, Airtel will offer dual connectivity with Software Defined Networks for WAN, Secure LAN amongst other technology solutions for CBDT’s Taxnet-2.0 program which aims to modernise the current system for collections, processing, monitoring, and accounting of direct taxes.
According to CA Ashish Niraj, Partner, ASN & Company, a chartered accountancy firm, here is what’s changed for you due to Taxnet 2.0:
- Better video conferring capability with the tax officers: During e-assessment, many times there is a need for videoconferencing between Department officers and Taxpayer and their CAs. Earlier many times there was an issue with videoconferencing and connectivity. Now with Airtel as a service provider, income taxpayers can expect easy video conferencing connectivity.
- Stronger Data security: Today during e-Assessment proceedings various income taxpayer data is uploaded on the income tax portal. This includes sensitive documents such as bank statements, clients’ invoices, inter-party agreements, etc. With time a much more robust system was needed to ensure enhanced safety and smooth user experience.
“The Taxnet 2.0 aims to revamp the Income Tax Department’s network system, provide enhanced security, improved reliability, and a seamless user experience for all stakeholders. M/s Bharti-Airtel Ltd, renowned for its expertise and innovative solutions in the field of telecommunication, has been selected for this critical project through an open tender selection process,” said CBDT in its press release.
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