I-T dept may launch drive to quicken refunds
October 19, 2023
Given that 3.5 million cases of tax refunds are “held up”, the Income Tax (IT) department is considering organising campaigns to assist the taxpayers, apart from proactively pursuing other means to process the refunds.
The processing of the I-T refunds was not smooth when the process used to happen manually. To ease the process, the department switched to issuing returns through electronic means in 2011.
However, tax officials say misinformation regarding the bank account and permanent-account number (PAN) details of taxpayers delay the refunds.
Earlier this month, during an interaction with reporters Central Board of Direct Taxes’ Chairman Nitin Gupta had said that department was “in correspondence” with such taxpayers, whose refunds are stuck. “We want to credit the refunds to the correct bank accounts of the taxpayers quickly.”
The department has started a unique demand management facilitation system about a year back for all such cases where refunds are held up due to a variety of reasons. An email is triggered to the taxpayer saying they will get a call three days from the dispatch of the email from a particular number and following this conversation, the issues are being resolved.
A Mysuru-based call-centre is resolving cases of tax refunds. Over 140,000 cases of refunds through the call-centre were resolved in FY23.
Amit Maheshwari, Tax Partner, AKM Global, said, “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.”
“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,” said Saurrav Sood, Practice Leader – International Tax and Transfer Pricing at SW India.
Meanwhile, for non-residents, who do not have bank accounts in India and the refund cannot be processed to a foreign bank account. For such taxpayers, an alternative should be given where in tax refund can be credited, experts say.
In the current financial year till Oct 9, the Income tax department has issued refunds worth Rs 1.5 trillion. In FY23, refunds worth Rs 3.07 trillion were issued by the Income Tax Department.
[The Financial Express]
