Income Tax Department considering drive to expedite refunds: Report

livemint.com:

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.