Group Members

Imran Khan

Saurabh Gupta

Shreshtha Jaiswal

IMPACT ANALYSIS OF INCOME TAX

HISTORY OF e-GOVERNANCE

The United States of America was especially driven by the 1998 Government Paperwork Elimination Act, introduced by former President Mr. Bill Clinton on December 17, 1999.

What is e-governance?

E-governance is the application of Information Technology to the processes of government functioning to bring about…

SmartMoralAccountableResponsiveTransparent Governance.

4 PILLARS of e-governance

BENEFITS of e-governanceCost effectiveSpeed, efficiency & convenientMinimum use of paper [ENVIRONMENTAL BONUS]Increases interest of citizensEasily accessible

e-governance is a journey and not a destination

Major task : Simplification & speeding.Two main goals :1.Process integration as electronic back office

including training of civil servants.2.Harmony of e-services.

Top 5 countries in world which implemented e-governance

RANK COUNTRY 1. SWEDEN 2. DENMARK 3. NORWAY 4. UNITED STATES 5. NETHERLANDS

Department of Electronics and

Information Technology (DEITY)

Department of Administrative Reforms and Public Grievances

(DARPG)

NeGP (National e-Governance

Plan)

e-governance in India

AIM:Improve delivery of Government Services to citizens & businesses.

VISION:Make all Government services accessible to the common man in his locality, through common service delivery outlets and ensure efficiency, transparency & reliability of such services at affordable costs to realize the basic needs of the common man.

e-governance in India

Mission Mode Projects & Components:A mission mode project (MMP) is an individual project within the National e-Governance Plan (NeGP) that: Focuses on one aspect of electronic governance, such as banking,

land records or commercial taxes etc. Clear defined objectives, scope and timelines Measurable outcomes and service levels.

Types of Mission Mode Projects (MMPs):1. Central MMPs 2. State MMPs3. Integrated MMPs

There are 31 Mission Mode Projects which are going on as on date.

e-governance in India cont……

Income Tax Department (ITD) undertakes a comprehensive deployment of ICT to enable taxpayers and citizens to transact with the department on anywhere anytime basis.

Return of income tax filing for companies made mandatorily compulsory online every year.

Objectives: Systems Integrator and Databases Migration & Consolidation: Have a single ITD

application running over a single national database with BCP and DRS. PAN Module and PAN Related Services: Provide PAN card to citizens and improve

authentication for all major financial transactions. Electronic filing of Income Tax Returns: To enable all taxpayers to fulfill their statutory

obligation of filing their Income Tax Return electronically- 'Anytime', 'Anywhere', securely and conveniently using the Internet.

Tax Information Network (TIN): Deliver more than 18 e-services to the taxpayers through digitization of all processes, filing of forms/applications, digitization of tax payments, authentications, tax credit verifications and refund processing.

Refund Banker Scheme: Fast track issue of refunds through agency bank (SBI) and enable web based tracking of refund status.

Central MMPs : Income Tax

The Income Tax website has facilitated end-to-end online delivery of many services though several taxpayers appear to prefer the ‘manual’ process.

Most services are still accessed manually with the ‘online’ part primarily being used by institutional users, as mandated by the department.

Central MMPs : Income Tax Cont….

The number of income tax payers in India

Earlier, tax collection was mainly done through manual counters provided by the department or at the special tax collection drives a week before the tax returns filing deadlines.

In order to respond to the growing demand for an efficient system of tax collection, the Income Tax Department launched a centralized website in 2002 with the aim to answer broad-based Income Tax queries.

Central MMPs : Income Tax Cont….

Financial Year Income Tax Assesses (Millions)

1996-97 12.5

2006-07 31.9

2007-08 33.6

2008-09 32.6

2009-10 34.0

2010-11 33.7

In 2005-06 more substantial electronic transactions were introduced through the Income Tax website.

Presently 19 services are offered through the online system including but not limited to: Preparation and filing of individual Income Tax returns and TDS returns and TDS returns by tax deductors; filing and tracking of PAN/TAN applications; status enquiry of taxes paid in banks; and access to taxation rules and taxpayer-specific information.

Central MMPs : Income Tax Cont….

For end-to-end delivery of these services through the online mode requires users to have Digital Signatures for filing documents and credit cards for making on-line payments.

E-filing and e-TDS for corporations are the only two services that have been mandated through the online mode.

Besides the Income Tax portal, services are also provided through the websites and offices of National Securities Depository Limited (NSDL) and UTI Infrastructure Technology And Services Limited (UTIITSL), and Income Tax offices across the country.

Users of online services primarily comprise of individuals and corporate bodies. The Income Tax portal was mainly used for e-filing of returns.

The portal is regularly used to access information about rules and regulations.

Central MMPs : Income Tax Cont….

Mode of obtaining primary data/information: STRUCTURED QUESTIONNAIRE

Examine difference between manual and computerized mode of operation from citizens/end users’ point of view

Cost related dimensions were measured directly WHILE quality and governance related indicators were measured as perceptions on a 5-point Likert scale.

Structured feedback on experience of using computerized interface with objective of providing inputs for future evolution & scope of computerized systems.

Systematic selection of samples of different types of users.

RESEARCH METHODOLOGY

FRAMEWORK OF STUDYDIMENSIONS OF IMPACT INDICATORS

Cost of Availing Services

Number of trips, Average Waiting time

Amount paid as bribe to functionaries

Amount paid to agents to facilitate service

Quality of Governance

Transparency participation, accountability, corruption measured.

Quality of Service

Interaction with staff, complaint handling, privacy, accuracy measured on 5 point scale

Overall Assessment

Preference for manual vs. computerized system

Composite score manned on Likert Scale factoring in the key attributes of delivery system

Random Sampling Methodology

Sample Size of 70 respondents

Questionnaire floated over emails (specific groups and individuals) and social networking sites.

Entire respondent population divided into region (north, south, etc.), cities (metro, non-metropolitan, etc.).

Users of online services primarily comprise of individuals and corporate bodies. The Income Tax portal was mainly used for e-filing of returns.

SAMPLING PLAN & SIZE

IMPACT ON KEY DIMENSIONSPROJECT INCOME TAX PORTAL (e-FILING)

Manual Online

Number of trips Individual 4 2

Corporate 2 1

Waiting time (minutes) Individual 45 15

Corporate 25 10

Total elapsed time in availing service (Days)

Individual 11 8

Corporate 10 4

Proportion paying bribes (%) Individual 35 10

Corporate 10 N/A

PROJECT INCOME TAX PORTAL (e-FILING)

Manual Online

Proportion using intermediary (%)

Individual 33.5 10.5

Overall Service Quality (5 point scale)

Individual 3.9 4.4

Corporate 3.1 3.9

Overall Governance Score (5-point scale)

Individual 4 4.2

Corporate 3.1 3.9

Composite Score (100 point scale)

78 84

Preference for computerized system (%)

82

IMPACT ON KEY DIMENSIONS contd.

Respondents asked to state three aspects of service delivery that they considered important and essential

Around 20 attributes ranging from cost of access, convenience, quality of delivery and quality of governance.

Corporate filers of income tax return perceived Corruption level Accuracy of transactions Cost of availing services

Individual filers also perceived following as important Accessibility to data Speed and efficiency of query handling Clarity & simplicity of processes and procedures

ANALYSIS OF DESIRABLE ATTRIBUTES

LIMITATION: Only online users considered. Huge chunk of physical service availers not considered.

Survey indicates Corporate users have benefitted on more aspects of services provided by

ITD. Individual filers have had limited benefits of services provided by ITD.

Varying degree of impact -> importance of making service delivery completely online so that it delivers the expected benefits such as: Time required for preparing income tax returns is significantly less in online

system as compared to manual mode. Requirement of depositing paper copies of Acknowledgement forms with IT

dept. -> negates time gained through e-Filing.

Simplified procedures and clear guidelines required to encourage use by actual users and eliminate dependency on middlemen/intermediaries.

LEARNINGS FROM THE STUDY

SCOPE of e-governance

Major implementation areas Public Grievances: Ration Card, Transportation facilities. Rural Services: Land Records. Police: FIR registrations, Lost and

Found details. Social Services: Birth, School, Death Certificates. Public Information: Information about Employment,

Hospitals, Railways etc. Agricultural Sector: Fertilizers, Seeds. Utility Payments: Electricity, Water, Telephone bills. Commercial: Income tax, Custom duty, Excise duty.

IMPORTANCE of e-governance Building strong and effective information chain. To bridge the gap between India and developed

countries. Effective utilization of resources. Reduction in delays, Red tape and corruption.

LIMITATIONS of e-governance

Budget. Poor IT literacy. Lack of electricity in rural areas. Corruption. Privacy problems.

CHALLENGES of e-governance

Lack of Integrated services Lack of KEY PERSONS Population Lack of communication among different

departments Different Languages

Result of Indian projects of e-governance

15%

50%

35%Successful projects

Failure of projects

Partly failure

ConclusionThe goal of e-governance is the ability to access

& interact with the world.Developing countries have many opportunities to

better themselves through e-governance.WALK WITH THE WORLD.

Recommendations Create awareness about positive role, the

Government can play in ECONOMIC and SOCIAL development.

E-governance makes an impact on the KNOWLEDGE OF SOCIETY as well as on the LITERACY LEVEL of society.

Reduce CORRUPTION in delivery of public services.

E- govt. benefits only the URBAN PEOPLE.