E-Nivaran Scheme

The E-Nivaran Scheme is an online grievance redressal mechanism introduced by the Income Tax Department of India to provide a faster, transparent, and efficient resolution of taxpayer grievances related to direct taxation. The scheme forms part of the broader digital governance framework adopted by the Central Board of Direct Taxes (CBDT) to enhance taxpayer services and promote ease of compliance through technology-enabled solutions.

Background

Before the introduction of E-Nivaran, grievance resolution in the Income Tax Department was largely manual, time-consuming, and fragmented across multiple channels such as physical complaints, emails, and the Centralised Public Grievance Redress and Monitoring System (CPGRAMS).
To address these inefficiencies and to align with the Government of India’s Digital India initiative, the E-Nivaran mechanism was launched in June 2016. It sought to provide taxpayers with a single-window online interface to submit, track, and resolve their grievances without needing to visit tax offices.
The term ‘Nivaran’ translates to ‘redressal’ or ‘solution’ in Hindi, reflecting the scheme’s core aim of grievance mitigation.

Objectives of the Scheme

The E-Nivaran Scheme was conceptualised to achieve the following objectives:

• To create a unified digital platform for all income-tax related grievances, eliminating the need for multiple submissions to different authorities.
• To ensure time-bound resolution of taxpayer complaints with accountability at each stage of processing.
• To enhance transparency in grievance handling by enabling taxpayers to monitor the status of their cases online.
• To promote paperless communication, minimising physical interaction between taxpayers and officials.
• To integrate grievance management with the existing systems such as the e-filing portal, Centralised Processing Centre (CPC) and Aayakar Seva Kendras (ASKs).

Mechanism of Operation

The E-Nivaran system is hosted on the official Income Tax e-Filing portal (www.incometax.gov.in). Taxpayers can access the facility using their login credentials.
The basic workflow includes the following steps:

1. Submission of Grievance: The taxpayer logs in to the portal and submits the grievance under a relevant category such as refunds, PAN issues, tax credit mismatch, assessment proceedings, or rectification requests.
2. Automatic Acknowledgement: The system generates an electronic acknowledgement with a unique grievance ID for tracking purposes.
3. Forwarding to Jurisdictional Officer: The grievance is routed automatically to the concerned jurisdictional office or processing unit based on the type of issue.
4. Status Monitoring: Taxpayers can track the real-time status of their grievances through the portal, which displays progress stages such as ‘received’, ‘under process’, and ‘disposed’.
5. Resolution and Closure: Once resolved, the taxpayer is notified electronically, and the grievance is marked as ‘closed’ in the system.

The E-Nivaran interface is also linked to Aayakar Seva Kendras (ASKs), where taxpayers who visit physical offices can lodge grievances that are subsequently entered into the same digital system for processing.

Categories of Grievances Covered

The scheme encompasses a wide range of taxpayer concerns, including but not limited to:

• Delayed income tax refunds or incorrect refund amounts.
• Technical glitches or login issues on the e-filing portal.
• Errors in Tax Deducted at Source (TDS) credits and Form 26AS mismatches.
• Rectification requests under Section 154 of the Income-tax Act.
• Grievances related to processing of returns at the Centralised Processing Centre (CPC), Bengaluru.
• Discrepancies in demand notices, interest calculations, or assessment orders.
• Issues with Permanent Account Number (PAN) and linking with Aadhaar.

Features and Technological Integration

• Single-window access: Taxpayers can raise grievances through one integrated platform that connects all tax administration units.
• Real-time tracking: Online tracking of complaint status enhances transparency and accountability.
• Automated routing: Complaints are routed to the appropriate tax officer or department using automated logic, reducing human error.
• Escalation matrix: The system incorporates hierarchical escalation if a grievance remains unresolved within the stipulated time frame.
• Performance monitoring: Supervisory authorities can monitor pendency and resolution times, improving administrative efficiency.
• Integration with CPGRAMS: The scheme is interoperable with the government’s central grievance portal to avoid duplication and ensure synchronised updates.

Advantages of the E-Nivaran Scheme

• Efficiency: Reduces the time and paperwork involved in grievance resolution by digitising the entire process.
• Transparency: Allows taxpayers to know exactly where their complaint stands and which authority is handling it.
• Accessibility: Provides 24×7 access to grievance redressal facilities from anywhere in the world.
• Accountability: Automatic tracking and escalation ensure that officers are held responsible for delays or inaction.
• Public trust: Encourages voluntary compliance by demonstrating the department’s commitment to taxpayer welfare.

Challenges and Limitations

• Digital literacy: Some taxpayers, particularly in rural or small-business segments, may face difficulties in navigating the online interface.
• Technical issues: Occasional website downtimes or slow processing at back-end units may delay grievance handling.
• Incomplete integration: Not all regional tax offices initially adopted full digital linkage, leading to uneven implementation.
• Quality of redressal: While grievances are disposed of more quickly, the quality of resolution may vary depending on officer efficiency and clarity of taxpayer communication.

Significance and Impact

The E-Nivaran Scheme represents a paradigm shift in taxpayer service delivery by embedding grievance redressal within the digital ecosystem of the Income Tax Department. It aligns with the principles of Minimum Government, Maximum Governance, and supports the broader objectives of administrative transparency, accountability, and citizen-centric service.
The system has improved response times, reduced the need for physical visits to tax offices, and built confidence among taxpayers regarding fair treatment. It has also provided valuable data analytics to the department for identifying recurring issues and improving systemic processes.

Future Prospects

Ongoing improvements in the E-Nivaran framework include:

• Integration with artificial intelligence-based modules to categorise and prioritise grievances automatically.
• Linking of grievance outcomes with performance metrics of officers.
• Enhanced mobile accessibility through the Income Tax Department’s mobile applications.
• Expansion of the scheme to cover other direct-tax platforms and allied government services.