Online tax filing in India is on a rise and as we reported earlier, there was a sharp increase of 504% in 2007 and the total number have reached 7.3% (of the total numbers filed).
In 2008-09, over 27 lakh income-tax assesses filed their tax returns via web and the number is expected to reach 45 L by 2009-10.
What has bridged the gap is availability of digital signatures – earlier one had to physically submit the form, but with digital signatures, one can electronically furnish the return [source].
The market opportunity for up selling tax related service can be gauged from the fact that IT and ITES professionals aren’t so bothered about tax planning.
Data from a survey conducted among IT/ITES professionals:
- 70% of those surveyed did not have any medical insurance and about 18 per cent only had medical insurance cover provided by their employers
- 36% of the respondents did not have any kind of life insurance in Hyderabad.
- more than 60 per cent had not fully utilised the limit of Rs 1 lakh
- 11 per cent of the respondents in Hyderabad used only Provident Fund (PF) investments, among the various tax saving options available.
As per a research conducted by Google India, Online sales accounts for 18% of total financial products sales in India.
Connect the dots and you can sense the trend.
What’s your take on this industry?