Industry leaders have highlighted a pressing issue: taxpayers are encountering challenges in keeping track of notices from the Central Board of Direct Taxes (CBDT). Sometimes, the email notifications about these notices arrive late or, in some cases, not at all. Furthermore, while the new income tax return (ITR) website interface is an improvement over the old one, it still falls short of being user-friendly, according to experts in the field.

What are the hurdles in the current system?

When the income tax department issues a notice to a taxpayer, an email notification should follow suit. However, the actual notice isn't sent as an attachment in the email; rather, it's made available on the income tax return filing portal.

Presently, upon receiving an email from the income tax department, taxpayers must navigate to the tax portal to locate the relevant communication. However, there are instances where these email notifications aren't received, leaving taxpayers unaware of new notices. Consequently, there's difficulty in identifying recently issued notices and pending communications within the income tax portal.

Tax experts believe that the new Income Tax Return (ITR) portal is an improvement over the old one, but there's still room for enhancement. While it's more user-friendly and engaging compared to its predecessor, there are areas that could be refined further.

One key area for improvement is making the portal more user-friendly. Many taxpayers find it difficult to locate important communications and notices within the portal. Simplifying navigation and enhancing accessibility could greatly benefit users.

Suggestions for Improving the ITR Portal

  1. Incorporate a separate tab for viewing income tax-related communications or notices issued to taxpayers, organized by date for easier tracking.
  2. Ensure that the date is prominently displayed on the E-Proceeding tab for all proceedings, aiding clarity and transparency.
  3. Simplify the navigation and layout of the ITR portal to make it more user-friendly. A clear and intuitive design will help taxpayers locate and understand information with ease, reducing confusion and enhancing interaction with the income tax department.
  4. Enhance convenience by attaching notice documents directly to email notifications. This will allow taxpayers to access important information promptly from their email accounts, ensuring timely awareness of any communications from the income tax department.
  5. Implement a robust notification system within the ITR portal to alert taxpayers promptly about new notices, advisories, or important updates.
  6. Consider adding a dashboard feature summarizing the taxpayer's current status, pending actions, and upcoming deadlines. This dashboard would further streamline the process and provide users with a quick overview of their tax affairs.

In November 2023, the income-tax department set up a demand facilitation centre (DFC) to assist taxpayers who received section 245 notices. These notices were sent via email, but many taxpayers couldn't find them on the ITR portal. To address this, taxpayers should contact their jurisdictional income tax assessing officer (AO) for the notice document.

Maintaining an online record of all notices on the ITR portal will greatly help taxpayers, reducing confusion and ensuring transparency in the process.