Govt clears Rs 4,242cr IT-filing project, selects Infosys as developer

Source: IBEF.org, Jan 17, 2019

New Delhi: The government on Wednesday said IT major Infosys will develop the next-generation income tax filing system for Rs 4,241.97 crore which will cut down the processing time for returns to one day from 63 days and expedite refunds.

The Cabinet, chaired by Prime Minister Narendra Modi, gave its “approval to expenditure sanction of Rs 4,241.97 crore for Integrated E-filing and Centralised Processing Centre 2.0 Project of the Income Tax Department”, Union minister Piyush Goyal said.

Briefing media about the decision, he said the processing time at present for Income Tax Reurn (ITR) is 63 days and it will come down to one day after implementation of the project.

Goyal said the project is expected to be completed in 18 months and will be launched after three months of testing.

Infosys, he said, has been selected to implement the project after the bidding process.

The current system, he said, has been a success and new project will be more tax friendly.

The e-filing and Centralised Processing Centre (CPC) projects have enabled end-to-end automation of all processes within the Income Tax Department using various innovative methods to provide taxpayer services and to promote voluntary compliance.

The Cabinet also sanctioned a consolidated cost of Rs 1,482.44 crore for the existing CPC-ITR 1.0 project up to 2018-19.

Goyal also informed that tax refunds worth Rs 1.83 lakh crore have been issued so far in the current fiscal.

The decision will ensure transparency and accountability besides faster processing of returns and issue of refunds to the taxpayers’ bank account directly without any interface with the Income Tax Department.

The broad objectives of the integration project include faster and accurate outcomes for taxpayer, enhancing user experience at all stages, improving taxpayer awareness and education through continuous engagement, according to an official release.

Besides, it will also be promoting voluntary tax compliance and managing outstanding demand.

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Larger outsourcing contracts may boost IT revenues in FY19

Source: LiveMint.com, Jan 02, 2018

New Delhi: The twin trends of outsourcing larger technology contracts and Fortune 1000 companies awarding work that was earlier done internally to its vendors have led analysts and information technology executives to suggest that the sector could grow faster in the year starting 1 April.

These trends are the third positive development for India’s $167 billion information technology (IT) outsourcing sector, after the first six months of the current fiscal saw IT firms adding more employees and raising salaries of some of them by as much as 40%.

“Digital spend is industrializing a little bit, moving from pilots and PoC (proof of concepts) to big spends. That should look well overall for the industry, so I am quite optimistic,” Nasscom chairman Rishad Premji said in an interaction with Mint last month. “The other interesting and exciting thing is, again at broad basis, the return of larger deals.”

The ability of IT companies to offer solutions through mobility and data crunching platforms that allows their clients, from Citigroup Inc. to Walmart Inc., to do their business more efficiently saw the technology vendors generating more revenue from stand-alone deals signed in 2018 than ever before. Read the rest of this entry »

Indian IT industry set to invest big in automation, AI in 2019

Source: LiveMint.com, Dec 24, 2018

New Delhi: Information technology faces threats from rising protectionism, data flow curbs and fast-changing technological shifts, but the Indian IT industry is keeping its hopes high for the new year with plans afoot for big investments in automation and artificial intelligence. For industry body Nasscom, 2018 had been the year of ‘Digital at Scale’ as IT firms focussed on leveraging new technologies and creating right skills with help from innovation, policies and partnerships.

The year ahead is “punctuated with several transformative opportunities,” Nasscom president Debjani Ghosh said.

The industry body has projected exports to grow at 7-9% for 2018-19, almost the same as the previous fiscal, but domestic revenue is likely to grow faster at 10-12% and this may make the new year transformative, with overseas funds accounting for the lion’s share so far. Read the rest of this entry »

5G rollout may be $10 billion opportunity for Indian IT firms

Source: LiveMint.com, Nov 01, 2018

New Delhi: The planned rollout of 5G or fifth-generation wireless technology by telecom companies globally offers at least $10 billion business over the next six years for India’s information technology (IT) services companies, according to a Mumbai-based brokerage firm.

This new technology spend by telecom firms on software and services could bring over $1.1 billion in incremental revenue over the next three years for country’s five largest companies, including Tata Consultancy Services Ltd, Infosys Ltd, HCL Technologies Ltd, Wipro Ltd and Tech Mahindra Ltd.

This development is significant as telecom firms over the last two years had held back their spend on technology, leading to tepid growth at telecom verticals for all IT firms. A new gusher of money should further boost growth for the five largest IT firms, which share among themselves about 30% of homegrown IT companies’ business from telecom companies. Read the rest of this entry »

Nasscom signs deal with Hiroshima govt for building Japan-India IT corridor

Source: Business Standard, Oct 22, 2018

New Delhi: IT industry body Nasscom Monday said it has signed a letter of intent with the Hiroshima government to work together in creating Japan-India IT corridor to facilitate partnerships between companies from both nations.

“The Hiroshima government will co-invest with Nasscom in creating Japan India IT Corridor that could be at the forefront of promoting B2B cooperation and talent transfer from India to Japan,” Nasscom said in a statement.

This project will be formally initiated by early 2019 on mutual consent, it added. Read the rest of this entry »

Indian IT industry revenue to grow by 8% to $167 bn in 2018-19 : Nasscom

Source: Business Standard, Oct 04, 2018

Bengaluru: With 37 per cent share of the global outsourcing, the Indian IT industry revenue is set to touch $167 billion for fiscal 2018-19, said its apex body Nasscom on Thursday.

“The Indian IT and Business Process Management (BPM) industry revenue, including exports is set to growth nearly 8 per cent annually to $167 billion for 2018-19 from $154 billion in fiscal 2017-18,” said Nasscom Vice Chairman Keshav R. Murugesh at its strategic summit here.

Noting that the industry is capitalising on newer technologies and re-skilling, Murugesh said the back office segment (BPM) has the largest base in the world, generating $32.5 billion revenue with 1.2 million employees across the country. Read the rest of this entry »

Google agrees to comply with RBI’s data localization norms

Source: LiveMint.com, Sept 10, 2018

New Delhi: Technology giant Google has agreed to comply with the data localization norms set by the Reserve Bank of India (RBI), but has sought an extension of the deadline to put a proper mechanism in place.

During a recent meeting of Google chief executive officer (CEO) Sundar Pichai and IT minister Ravi Shankar Prasad at Google’s headquarters in Mountain View, the company agreed to comply with all the norms and sought time till the end of December, said a senior government official, requesting anonymity.

The RBI had set 15 October as the deadline for payment system operators to store data in India. Besides Visa, American Express, Facebook, PayPal, and Mastercard, among others, Google is also required to store date in the country.

Read the rest of this entry »