Income Tax Portal Woes: Is Infosys or FinMin to Blame?

So who is to be held accountable? Infosys, for failing to prepare adequately? Or the Ministry, for continuing to rely on them despite repeated setbacks?
Income Tax Portal - Infosys - Finance Ministry - taxscan

The Income Tax Portal Project, a massive ₹4,241.97 crore initiative spanning 8.5 years, was launched by the Finance Ministry in collaboration with Infosys. While the project represents a major step forward in modernizing India’s taxation system, persistent glitches and annual disruptions continue to raise serious concerns.

The question remains: Who bears the responsibility for these recurring issues, the Government or its celebrated tech partner, Infosys?

The Central Board of Direct Taxes (CBDT) extended the due date for income tax return filing to September 15, 2025. According to the official press release, the delay is due to the time required to make utilities ready. The reason appears genuine.

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But this raises further questions:

  • Does the delay affect the workflow of tax professionals?
  • Does it inconvenience the public expecting timely refunds?
  • Does it impact the filing of updated returns?
  • Could it even affect the financial planning of the country?

Also read: Unexplained Credits Must Be Taxed in the Hands of Ultimate Beneficiaries, Not Conduit Companies: Delhi HC [Read Order]

Where exactly is the problem?

It’s difficult to point fingers definitively. Infosys, being one of India’s top tech giants, naturally emerged as a leading contender for such a critical government contract and the government trusted their capability and also the low quotation provided by them. However, since its launch in 2021, the portal has been marred by recurring issues, especially its inability to handle heavy traffic during peak filing periods. The government has paid Rs. 165 Crores to the Infosys team in 2019.

As the tech partner, Infosys should have anticipated the increasing number of taxpayers each year and taken proactive steps to ensure the portal’s performance. Moreover, it’s hardly a revelation that utilities need to be ready by April or May of every financial year and yet, this readiness continues to fall short.

So who is to be held accountable? Infosys, for failing to prepare adequately? Or the Ministry, for continuing to rely on them despite repeated setbacks?

Last year alone, the portal experienced 15 major issues that frustrated taxpayers and professionals alike:

  • Inability to download Form 26AS
  • Loading problems
  • Server downtime
  • ‘Portal not found’ errors
  • Payment processing issues
  • Errors in pre-filled data
  • Difficulty accessing Form 26AS and AIS
  • Website freezing every few seconds
  • Error ITD-EXEC2002 while paying challans
  • OTP not received for authentication
  • Trouble downloading filed ITR receipts
  • Income Tax Utility not working or showing incorrect password
  • Form 15CB showing “pending” even after processing
  • Incorrect error: “Cannot claim both 10(13A) and 80GG”
  • General utility errors in ITR filing

Also read: Income Tax Portal Technical Issue makes Filing TDS Form 15G/15H Hard for Individual Taxpayers

These are not just technical bugs, they are bottlenecks that stall financial workflows and erode public trust. Similarly the Karnataka State Chartered Accountants Association (KSCAA) submitted a representation on the ongoing technical issues affecting the Income Tax portal before the board. The glitches raised as follows:

  1. Login Failures and Unresponsive Pages
  2. Slow Response Times
  3. Inability to Access or Download 26AS, AIS, and TIS
  4. Error Messages During Return Submission
  5. Difficulties Filing Income Tax Returns
  6. Challenges in Filing TDS Returns
  7. Issues in Filing Tax Audit Reports
  8. Problem with Form 3CEB
  9. Difficulty in Generating Challans and Making Payments

Despite repeated complaints from professionals and the public, technical glitches on the portal continue to persist. Even when grievances are raised, they often go unresolved or are not addressed effectively. It is imperative for the government to prioritize the interests of taxpayers after all, the nation’s major source of revenue depends on their compliance and trust in the system. Also may be to change the contract to some other team who could do the best.

Also read: Rental Income Offered for Taxation in One Assessment Year Cannot Taxed Again: ITAT Remits Matter to AO [Read Order]

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