Monday, August 6, 2012

E-filing of income tax

While the Indian government's effort to get all income taxes over ₹10 lakhs to be filed online compulsorily must be lauded, we are still really myopic about the way to do it.

The website requires one to first create an account (a regulation step), and then submit an XML file as the tax return. The use of XML is a great step as (i) it is really just a text format, (ii) it is free and not under any copyright, etc.

However, as soon as one starts thinking of how to create the XML file, trouble ensues. The website asks one to use a spreadsheet file (that also after unzipping). Note that while spreadsheet is an open (and free) format, the file that the website provides issues macros and ActiveX controls which, unfortunately, cannot be run without Microsoft Excel. I have tried different Openoffice versions and confirmed this.

This is where my real complaint is. Why force an entire population to use a paid (and if I may add, quite heavily so) software? Does the Indian government assume that all users have access to such a pricey software? Or as is the current wisdom, have access to one with such a privilege or worse have access to a pirated version? Is this really promoting piracy?

I must re-emphasize the fact that the final output is just an XML file. Some other software (not a spreadsheet) could have been used to generate it only if the website also provided the document structure for it. But why bother when the open secret is that M$Office is freely pirated.

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