In general, the digital transformation of tax administration aims to achieve several goals. These include improving efficiency, speed, and transparency, reducing compliance and administrative costs significantly, and ultimately increasing revenue by enhancing compliance. Regarding taxation, the process of digitizing tax functions involves companies adopting tax technology to comply with electronic reporting requirements and improve the accuracy and efficiency of their tax functions through automation.
Dissecting the promising aspects alluding to digital transformation of tax administration
The digital transformation of tax administration is an ongoing process that is being implemented in stages or modules, taking into account various factors such as funding, capacity to absorb change, strategic vision, and political support. Although the adoption of specific processes and technologies may vary regionally, there are similarities across Asia and the Pacific in areas such as e-filing and e-invoicing, indicating the need for some coordination in implementing digital transformation.
In the context of digitization, a significant area of focus is the digital economy, as it enables businesses to expand their reach into markets where they have limited physical presence. This can result in a situation where a company based in one state can generate substantial revenue in another state without paying a significant amount of corporation tax in the latter state, due to the existing international tax rules that allocate taxing rights based on physical presence.
Following the recent announcement by the income tax department, Axis Bank, Bank of Baroda, Bank of India, Bank of Maharashtra, Canara Bank, Central Bank of India, City Union Bank, Federal Bank, ICICI Bank, IDBI Bank, Indian Bank, Indian Overseas Bank, IndusInd Bank, Jammu & Kashmir Bank, Karur Vysya Bank, Kotak Mahindra Bank, Punjab National Bank, UCO Bank, and Union Bank are the 19 banks available at the e-filing portal.
Online ITR Filing has been made accessible, trustworthy, and unmissable by the leading tax filing platforms.
E-filing brings with it incredible benefits, let us explore a few of them, shall we?
1. The e-filing portal ensures complete transparency and confidentiality, allowing you to file your tax returns honestly with the income tax department.
2. Only those with access to your user ID and password can view your tax information, ensuring security and privacy.
3. The e-filing portal is built with the latest internet security technology, making it safe to use.
4. Filing income tax returns is convenient and less time-consuming and can be done from the comfort of your home, as the portal is available 24 hours a day.
5. Any errors made during the filing process are easy to correct online without having to fill out all the information again.
6. E-filing allows you to maintain and access your tax records online, which are well organised, paper-free and categorised by year.
7. Faster income tax refunds can be obtained through e-filing, with the income tax department verifying information online, resulting in quicker processing times.
The use of technology reduces the potential for errors as part of online ITR Filing and introduces a more structured process with faster updates.
