Deprofilization by Income Tax department- A nightmare for tax professionals


Let us first make you all read the official reasoning from IT department “New registration process to facilitate effective communication between the taxpayer and the department is enabled. The existing e-filing users are required to update their profile by logging into e-filing account. Users who have registered already and not activated have to register again,” the advisory by the Income Tax Department said. Here is our analysis.

Profile updation on income tax website would be a nightmare for assesse as well as practitioners.

As you all aware that income tax department has now mandated to update the profile via a landing page on the website login. One can not use same contact details more than 3 times which will be the reason for the nightmare. You have just struggled with aadhar pan seeding issues and now this is another night monster waiting for you.

This is like the very popular demonetization in which the old currency was deposited in return of new currency. Similarly, old data would be replaced by the new ones.

Are you still thinking that how this would be a nightmare when this is a 5 minutes craft to update the profile? In that case please go through the below mentioned case study.

Mr. CA has 500 clients for whom he had given his own email id’s or some different email id’s which could be used up to 10 times and he has a record of that email ids in computax software for example.

Now for any website related task, he has to update the profile with new contact details. Surely he would require his client’s support for this task since contact details would be accepted only if validated by OTPs. Many of tax professionals had used their own contact details for client profile. Now he updates his own profile using his own credentials and here the suspense arises. An error message will be there saying you have used email id or mobile number more than 3 times. Twist doesn’t end up here since you will have no idea that in how many client’s profiles you had used your credentials. Now, what is the ridiculous thing that your profile is not updated with your contact details and you still claim yourself a Tax Professional 😀

So you will think to use the details of the client itself but now you come to know that 40-50% of your clients do not use email id regularly. Yes this is the case of nightmare for you to create separate email id’s for all your clients. Your stress doesn’t wipe off here. Since you might create separate email id’s for clients then how would you manage the communication sent by the department? Ultimately your client will notify you about the communication received on his mobile number and you will check that from efiling website not from the email id. This is what you are doing right now.

A most important thing which is currently ignored by this government is that the tax professionals are the key drivers in the tax filings, not the assessee so why their laws and rules are detrimental for tax professionals? They should make rules in consideration with tax professionals to ensure the smooth functioning of the finance ministry.

So our simple question from the CBDT that why there is such a need to update the credentials.

Further on the point of address and bank details updation what you think let us know in the comment section below.

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