Make that free, web-based & state-hosted online solutions.
What is this tax-software thing you are taking about?
See this page if you're interested: https://translate.google.com/translate?sl=auto&tl=en&js=y&pr...
They also have a web based solution, but I personally prefer not to use it, because I don't trust it.
Out of curiousity what do you not trust?
I don't trust to store this stuff in a remotely secure manner for the online version. I have no idea how their setup looks like, but I expect they'll throw it in some kind of database and are done with it. That would be the worst case.
If anyone manages to compromise the application server, they can see all the data.
I don't trust them to have a sane architecture where the application server has basically write only access to the database. I don't trust them to encrypt the data with a public key to process them later on on a box that doesn't serve random requests from the internet.
I have more faith in them beeing able to physically guard a piece of paper, even if they'll scan it and then process it digitally later on (which they do), you can not access it by exploiting an SQL injection on the public internet (hopefully).
Edit: I just checked their website again and it seems to confirm my suspicion about their architecture. Seems you could even get access to all data from previous years:
> If the online solution [was] used in the previous year, the previous data will be available automatically.
Sure, they could encrypt each dataset with they key the provide to each user, but i doubt it.
Tax authorities would like to get direct access to see bank accounts, that's not on yet.
Filing a tax return is very easy. Usually you need to do nothing, but if you have some specific tax deductions - not much is eligible - then you can do it with a fairly simple Web interface, or leave an equally simple paper form.
You can see this even more starkly in the difference between the two in regards to medical records. Or even just basic personal details. My Kela card mostly tells doctors all they need to know, and even my address changes seem to get around without my having to do anything about it.
It was a bit unsettling at first for an American, but the systems here are largely pretty efficient except where unemployment is concerned...
[1]https://incometaxindiaefiling.gov.in/e-Filing/UserLogin/Logi...
This is just BS from companies afraid to lose their cash cow.
Fraud is always going to happen, period. Deal with them and that's it.