New Delhi: Chairman, Central Board of Direct Tax (CBDT), R Prasad said that the finance ministry would be evolving a centralized system to process refunds within a period of 4-6 months which is why they gave sops to tax payers in the budget for 2008-09.
According to Prasad, tax payers would not get notices from a particular assesse or income tax official but would be served notices under a seal of an income tax department for evasion of taxes or for seeking any clarification.
With the new system in place, the tax payers would not be required to appear before a particular tax official with written reply but would be required to submit their return explanation without being physically present so that tax refunds can be processed without any delay.
Tax compliance in the last two years on direct and indirect front have gone up by 40%-43% as against 22%-25% in last four years and the government is therefore tempted to evolve a centralized system in eight to nine centres for processing quick refunds.
Economic advisor to FM, Shubhashis Gangopadhyay, clarified that the finance ministry would generate resources for scheduled commercial banks so that loan wavier scheme for marginal farmers could be executed well by them. He said that scheme was full of merit since banks could not have done anything against those that refused repayment of agricultural loans to the extent of Rs60,000 crore.
The advisor admitted that the government in future would enhance its GDP and education ratio much beyond 6% to ensure literacy at primary and higher education levels.