The Central Board of Direct Taxes (CBDT) said on Friday it has awarded a network project to Bharti-Airtel Ltd., which will go a long way in enhancing the digital infrastructure of the income tax department.
The apex direct tax policy making body did not disclose the value of the contract but said Bharti-Airtel was selected through an open tender selection process.
Under the project, called Taxnet 2.0, the company will provide network connectivity, facility management services and video conferencing services.
The project seeks to revamp the department’s network system, provide enhanced security, reliability, and a “seamless user experience”, CBDT said.
The project will also use technology to protect sensitive data and ensure privacy while delivering higher reliability. The project will also enhance the tax services for citizens and businesses alike, CBDT said.
The Infosys precedent
In 2019, CBDT had hired Infosys Ltd. to build a new tax return filing portal, which is now operational.
The Taxnet 2.0 project will provide a robust network connectivity platform to the income tax department that further advances the government’s commitment to modernizing the country’s digital infrastructure and delivering high-quality services to the public, CBDT said.
The new connectivity project is expected to boost the tax department’s faceless assessment and appeals process as connectivity is central to communication between the tax authority and professionals and tax payers. The department has been deploying technology to automate various processes to improve efficiency and to remove any element of subjectivity that may be involved in the physical interface between officials and tax payers.
With stepped up IT capabilities, the department is capable of capturing and analysing a large amount of data and enhance its oversight of transactions in the economy. Direct tax collections have in recent years shown a strong growth. Centre’s direct tax collections stood at ₹5.74 trillion in the 1 April to 11 July the period, after tax refunds, showing a 20% growth annually, according to CBDT data.
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