As the deadline for filing income tax returns (ITRs) approached, millions of Indian taxpayers encountered significant issues with the income tax portal, developed at a cost of ₹4,200 crore. The portal’s performance left many struggling to complete their submissions on time, leading to widespread frustration and criticism.

Technical Troubles

In the final days of July, as taxpayers rushed to file their returns for the 2022-23 fiscal year, they were met with a barrage of glitches, slow response times, and system crashes. Many took to social media to express their dissatisfaction, questioning the substantial investment made in the portal.

“Spent the entire day trying to file my ITR. ₹4,200 crore for this?” one user tweeted. Another commented, “Every year we face the same issues with the tax portal. This is unacceptable!”

Government Assurance

The Central Board of Direct Taxes (CBDT) responded to the criticism by reassuring taxpayers that they were working closely with service providers to resolve the issues. “We are engaging closely with our service providers Infosys, IBM, and Hitachi, who are on the job. The volumes are high and the compliance is also good… I have been assured that the website will function properly,” said the CBDT chairman, as quoted by PTI last week.

Despite these assurances, many taxpayers continued to experience difficulties, highlighting the need for a more robust system capable of handling high volumes of traffic, especially considering the significant financial investment involved.

Navigating Tax Regimes

Adding to the complexity was the need to choose between India’s two personal income tax regimes. The old regime, with higher tax rates, offers numerous exemptions and deductions, while the new regime, with lower tax rates, provides fewer deductions. This decision-making process added another layer of stress for taxpayers already grappling with technical issues.

Significant Figures

For the 2022-23 fiscal year, 8.61 crore ITRs were filed, underscoring the importance of a reliable and efficient tax portal. The glitches not only delayed submissions but also caused considerable stress for taxpayers trying to meet the deadline.

Implications for Digital Infrastructure

The issues with the income tax portal raise broader concerns about India’s digital infrastructure. As the country moves towards greater digitization of public services, the reliability of these systems is crucial. The repeated failures of the tax portal highlight the need for accountability and effective project management in large-scale IT initiatives.

Future Expectations

As the tax filing season comes to a close, attention will likely turn to ensuring that such disruptions do not occur in the future. There will be calls for increased transparency in the use of public funds for IT projects and for stricter performance standards for service providers.

For now, taxpayers can only hope that their complaints have been heard and that future interactions with the tax portal will be smoother. With ₹4,200 crore invested, the expectation is for a seamless and efficient system.

Conclusion

The recent challenges with the income tax portal serve as a reminder of the complexities involved in digital transitions. While the goal of increased efficiency is commendable, execution must align with expectations. As India continues to digitize public services, the lessons from this experience will be vital in ensuring that technology effectively serves its citizens