The e-return scheme of the income tax department, a system which allows a tax payer to file returns through the Internet, is yet to find any takers in Ahmedabad.
The scheme was launched by the Union finance minister Jaswant Singh on August 8. The scheme is meant for salaried taxpayers in the four metropolitan cities along with Ahmedabad, Bangalore and Hyderabad.
The scheme at present envisages filing of returns through authorized intermediaries, but will be enhanced in the future to enable direct filing of returns through Internet under digital signatures.
In Ahmedabad, the authorised intermediaries for receiving tax returns are HDFC Bank at Mithakhali, Navrangpura, Bharat Overseas Bank at C G Road and Indian Overseas Bank at Ashram Road.
The I-T department's aim is to provide paperless filing for the maximum number of taxpayers. In the past 10 days, there has not been a single taxpayer who has availed of the e-return scheme. There are around 180,000 persons in Ahmedabad who are eligible to avail of the scheme.
Although it is early days, several reasons could be listed out for the lukewarm response to the scheme.
First, people are still not comfortable with the idea of filing returns through an intermediary and the taxpayer has to present documents to the intermediary instead of the I-T department.
Moreover, the process is long drawn although it promises to be an 'electronic furnishing of returns of income'.
This is how it works. A taxpayer can approach an authorised intermediary either with details of income and its supporting documents or with a prepared return of income.
The intermediary will prepare his return of income and obtain his signature on the same. The intermediary will then transcribe the data on the return of income and transmit it online to the server of the I-T department at Ahmedabad in a predefined format.
The department will send a provisional receipt online to the intermediary, indicating the date of receipt and will specify the office of the assessing officer, where the paper return is to be submitted by the intermediary.
The intermediary will submit the paper along with the provisional receipt at the I-T office and will get an acknowledgment, which he will handover to the tax payer. Tax payers are either unaware of the new scheme or are apprehensive about its success.
Dilip Shah, a serviceman, says that he has not heard of the scheme so far. "It sounds like a good scheme, but I have not heard of it. I do not even know which banks I must approach to avail of the scheme," Shah said.
Mahendra Patel, another salaried person said that he would prefer to stand in a queue and file returns at the I-T office.
"I will have to provide all papers to the intermediary too. Why not present these directly at the I-T office and be sure that the papers are in the right place?" he asked.
N K Jain, chief commissioner of I-T, Gujarat, admitted that no returns have been received under this scheme in Ahmedabad so far.
"Gradually, the scheme will be enhanced to enable direct filing of returns through Internet under digital signatures," he said.
However, given the large base of tax payers in the country, only 5,000-odd have got digital signatures.
The primary objectives of e-return scheme are to provide a convenient and fast alternative of filing returns without visiting the income tax office, to eliminate the interface of taxpayers with the department at the time of filing of returns, faster processing of returns and speedy issue of refunds.
Only individuals not having income from business and profession, those who have been allotted a permanent account number and those residing in the seven specified cities are eligible for the e-return scheme.