New ITR e-filing portal 3.0 launching soon: All you need to know

The Income Tax Department is set to launch a revamped e-filing portal, ITR E-Filing Portal 3.0, with significant improvements aimed at making tax filing easier for taxpayers. According to an internal circular dated October 8, 2024, the new portal, part of Project IEC 3.0, will replace the current system and introduce advanced features for smoother and more secure filing of income tax returns.
The existing ITR e-filing system, known as IEC 2.0, is coming to the end of its operational phase. The new system, IEC 3.0, will not only continue offering all the current services but will also come with enhancements that aim to create a more user-friendly and secure environment for taxpayers.
According to the Income Tax Department’s internal circular, the IEC platform allows taxpayers to electronically file their Income Tax Returns (ITRs), submit statutory forms, and access other services. The Centralised Processing Centre (CPC) handles the processing of these returns through the portal. In addition to this, there is a Back-Office (BO) portal that tax officers use to access data related to taxpayer filings and processing.
Project IEC 3.0 will continue all these functions, but with a focus on improving user experience and providing faster, more efficient services.
Before launching the new portal, the Income Tax Department is seeking feedback from the public and stakeholders. The department believes that the new platform will have a major impact on how both taxpayers and tax officers work in the future, so they are encouraging users to share their opinions and suggestions.
A committee will be formed to gather input from various stakeholders, including taxpayers, tax professionals, and officers of the department. This committee, led by a senior officer not below the rank of CIT (Commissioner of Income Tax), will be tasked with gathering feedback on the current system’s strengths and weaknesses and identifying areas for improvement in IEC 3.0. The committee will be formed within a week of the order, and all suggestions are expected to be submitted by November 30, 2024.
Chartered Accountant Ashish Niraj, Partner at A S N & Company, told The Economic Times (ET) that the transition to IEC 3.0 will make the system more user-friendly. He expects that the new portal will process ITRs more quickly, potentially speeding up refunds for taxpayers. He also hopes that common issues such as problems with downloading past tax returns or forms, server failures, and payment issues will be resolved in the upgraded system.
“There were some technical glitches in IEC 2.0, but with the high-speed technology expected in IEC 3.0, I am optimistic that these problems will be reduced,” Niraj told ET.
Chartered Accountant Hardik Kakadiya, President of the Chartered Accountants Association, Surat, also commented on the potential improvements. He said that there have been ongoing issues with the current portal, and a case has even been filed in the Gujarat High Court regarding the glitches. Kakadiya hopes that the new portal will be able to handle the increasing number of taxpayers more efficiently and prevent similar problems in the future.
“If the portal is upgraded on time, it can help avoid not only technical issues but also prevent a lot of unnecessary legal challenges,” Kakadiya told ET.