If you were banking on your income tax refund for 2006-07 to take care of your investment needs or meet liquidity requirements, then there is no immediate hope in sight with the government yet to develop a software to process your returns. While the finance ministry launched the new multi-page tax returns form in May this year, it is yet to develop a software to process the information. "Work is going on and developing it is not going to take much time," said an official. Software apart, the short-staffed income tax department is yet to complete processing refunds for 2005-06 (remember you filed returns in July 2006). But there may be some good news on this front if you are an individual seeking up to Rs 25,000 refund. The Central Board of Direct Taxes last week asked its officers to ensure that demand for refunds up to Rs 25,000 are processed by the end of the month, while the others too are expedited and completed by end of November instead of the earlier deadline of December. Till the end of August, officials said, around 20 lakh applications had been processed and individuals had been refunded around Rs 4,300 crore that they had paid as excess tax. During the last financial year, the government processed around 44 lakh such cases and paid Rs 3,000 crore in refunds to individuals. "Compared to previous years, the tax department has been doing a better job in processing refunds," claimed an official though there were a large number of individuals who were yet to get their dues. But there is bad news for the corporate sector with the income tax department deciding to set off the fresh demands raised by officials during the current financial year against the refunds claimed by the companies for 2006-07. Of the Rs 20,195 crore pending refunds at the start of the financial year, around Rs 10,500 crore has been refunded so far, said an official. But it's only later that he reveals that at least 50% of the refunds pertain to 2005-06 and not 2006-07. So the pending refunds for last year are close to Rs 15,000 crore. "Not all companies are affected. It is mainly those who have claimed tax benefits under one section or another," said an official. Like individuals, the government's latest move has upset the calculations of many companies too which were under the impression that introduction of e-filing was going to speed up processing and refunds.
NOW, SOFTWARE MAY HOLD UP TAX REFUNDS
Last updated: 19 September 2007
Comments
Recent News :
- Income Tax Practitioners Sentenced to 3 Years in Jail for TDS Refund Fraud
- Income Tax Department Launches State-Wide Searches on Builder Group for Suspected Tax Evasion
- NFRA Chief Highlights Significant Improvements in Company Auditing Over Last 3-4 Years
- RBI Reports 98% Return of Rs 2000 Banknotes Post Withdrawal Announcement
- CBDT Exempts Diplomatic Missions and UN Agencies from Section 194N Provisions
- UPI Processes 16 Billion Transactions Worth Rs 23.49 Lakh Crores in October 2024
- Record Rs 1.82 Lakh Crore GST Collection in November Marks 8.5% Growth
- ICAI's Role in Strengthening Capital Markets: A Pathway to Economic Growth and Investor Protection
- CBDT Pushes for Swift Review of Income-Tax Act: Officers to Station in Delhi
- CBDT Extends ITR Filing Deadline for Taxpayers u/s 92E to 15th December 2024
Popular News
- Income Tax Practitioners Sentenced to 3 Years in Jail for TDS Refund Fraud
- ICAI Proposes Mandatory Qualifications for Forensic Audit Professionals
- CBIC Extends GSTR-3B Filing Deadline for Oct 2024 to Nov 21 for Maharashtra and Jharkhand
- Cabinet approves the PAN 2.0 Project
- GST Collections See Sharp Decline Across Major States in H1 FY25
Trending Online Classes
-
6 days Certification Course on GST Practical Return Filing Process
CA Pratibha Goyal16 December 2024
CAclubindia
