Facing the problems with its Information Technology network due to the shortage of a technical manpower and some of the systems still not having fully stabilized, the income Tax it departments is still facing problems because of this. The Information Technology departments has to outsource some of its work due to a shortage of manpower and this is being done at the local level even to some small-time infotech companies which can compromise the integrity of the data. The sources disclose that the outsourced agents often know the ID and passwords of the officers of the IT department which gives them access to confidential data. The exp0oses the system to a risk of manipulation and misuse. The computer network of the department of customs was hacked to siphon off official funds meant for the export incentives under the duty drawback scheme.
From the Ludhiana, the passwords of the customs officials were used to log into the computer network to get the details of the consignments dispatched by genuine exporters. The consignments were then presented as exports of a front company to claim refunds. The customs officials claim that the computer professionals employed for the outsourced work were responsible for the leaking the passwords. The Information Technology department issues the refunds running into the thousands of crores every year. There is a potential risk involved of the system that is being hacked. The refunds amount close to 15 percent of gross corporate tax while in the case of the individuals it is around nine percent.
The departmental staff is not supposed to give out their passwords and in the case that the passwords is misused it can be found out and the officer concerned can be brought to book. In carrying out the assessment, the assessment Information and System of the Information Technology department is an online, menu-driven software, which assists the assessing officer. Into the AIS, the data on the paper returns filed by the taxpayers are fed by the range staff of each AO into the AIS. The bundles of the data are categorized into the segments such as the nil demand and the demand. The employees of firms doling outsourced work also gain access to the data when they get the password of the official staff.
Even the computerization of the Information Technology department has come a long way, it is also trying to train its staff meet the new challenges. The pace of the progress is not good enough. The glitches continue to surface in the e-filing system. It was reflected in the postponement of the last date for filing e-returns in July this year because of the network snag. The computerized system has not fully stabilized that the department has not been able to meet its own target for the reducing delays in the payment of the Information Technology. This is considered a critical area for achieving efficiency in the tax administration.
REFERENCE:
http://businesstoday.intoday.in/story/outsourcing-to-local-firms-exposes-i-t-data-to-fraud/1/9197.html