Income Tax Department considering drive to expedite refunds: Report | Mint
Active Stocks
Wed Feb 28 2024 15:59:21
  1. Tata Motors share price
  2. 957.75 -0.52%
  1. Tata Steel share price
  2. 140.75 -2.36%
  1. HDFC Bank share price
  2. 1,408.15 -0.87%
  1. Power Grid Corporation Of India share price
  2. 279.55 -4.43%
  1. ITC share price
  2. 408.60 -0.62%
Business News/ Money / Personal Finance/  Income Tax Department considering drive to expedite refunds: Report
BackBack

Income Tax Department considering drive to expedite refunds: Report

The Income Tax (IT) department is contemplating launching campaigns to aid taxpayers, alongside their proactive efforts to expedite refund processing through alternative means, said the report.

Income Tax Department looking to launch drive to quicken refunds. (Pixabay)Premium
Income Tax Department looking to launch drive to quicken refunds. (Pixabay)

With 3.5 million tax refund cases currently delayed, the Income Tax (IT) Department is contemplating the organisation of campaigns aimed at aiding taxpayers. In addition to this, it is actively exploring alternative methods to expedite the refund processing, according to Financial Express

The processing of I-T refunds faced challenges when it was done manually. To streamline the procedure, the department transitioned to electronic issuance of returns in 2011, the report noted.

Nonetheless, tax authorities point out that misinformation concerning taxpayers' bank account and Permanent Account Number (PAN) details is a key factor causing delays in refunds, said the report. 

Earlier this month, in a conversation with journalists, Nitin Gupta, Chairman of the Central Board of Direct Taxes, stated that the department was in communication with taxpayers experiencing refund delays. He emphasised the department's commitment to promptly crediting refunds to the correct bank accounts of these taxpayers, as per the report.

Approximately a year ago, the department initiated an innovative demand management facilitation system to address cases with delayed refunds due to various reasons. In this process, an email is automatically sent to the taxpayer, indicating that they can expect a call from a specified number within three days of email dispatch. Subsequently, discussions take place to resolve the issues at hand, it said.

A call centre located in Mysuru is dedicated to addressing tax refund cases, and in the fiscal year 2023, they successfully resolved over 140,000 refund-related cases, it added.

“The tax department should periodically send reminders for validation of bank accounts since this is one the reasons for the refunds getting held up. In case the PAN is linked with the bank accounts, it generally takes 1-2 days to validate accounts. However, in case it is still not validating a grievance can be raised on the tax portal," Amit Maheshwari, Tax Partner, AKM Global, was quoted as saying in the report.

“Where the refund cannot be processed due to lack of information (of the taxpayer), notices or emails can be sent to taxpayers to seek such information or a good-will campaign can be organised wherein a window of opportunity can be given to seek assistance in seeking refund," Saurrav Sood, Practice Leader – International Tax and Transfer Pricing at SW India, told FE.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Check all the latest action on Budget 2024 here. Download The Mint News App to get Daily Market Updates.
More Less
Published: 20 Oct 2023, 06:14 PM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App