Are your online tax returns safe?

By Ashwin Mohan, CNBC-TV18:

You can now file your returns at the click of a mouse. But just how safe is it? You could be vulnerable to hackers.

Last year, 22 lakh people filed their tax returns online. This year, the Central Board of Direct Taxes, or CBDT, expects at least 50 lakh more. e-filing of income tax returns has come as a welcome relief for many. But it may just turn to discomfort as anyone can hack into your account and browse through your income tax details.

Three pieces of basic information ‑ name, date of birth, and pan number ‑ is all that an aspiring hacker requires. And www.incometaxindiaefiling.gov.in is where he can get down to business. Go to the home page and click on the login link. Then click on the forget password link, which will take you to the password modification page. Enter the login as the individual's pan number, which is known to you. Enter the other two details, i.e. name and date of birth. Now, enter the new password twice and click on the reset password button.

Login with the new password and you have access to the net income, tax returns, TDS deductions, and refund amount of the individual concerned. What's more your phone number and address are also at the hackers disposal. Details which should remain between the individual and the IT Department. Interestingly, the same procedure can be repeated in the case of corporate income tax records as well. Seems like the taxman will certainly have to clear up its online act.