Paper Documents back as I-T refunds not e-asy

Last updated: 28 September 2007 Follow on Google News

NEW DELHI: Switching back to paper may help corporate tax payers who had e-filed returns and are still awaiting tax refunds. With Rs 14,000 crore worth of refunds stuck due to non-processing of e-returns, the income-tax department plans to ask them to furnish documents supporting claims for credits such as tax deducted at source (TDS) certificates.

Individual tax payers have been luckier and after the initial hiccups, refunds issued to them have witnessed an increase. However, the issue of corporate refunds still seems to be troubling the I-T department. The issue had figured at a recent meeting of the senior department officials.

The department is now planning to ask top 200 corporate assessees and other assessees who have substantial tax refund claims to submit documents related to these claims. The department would also scrutinise their returns. The tax claims of these assessees can then be adjusted against any additional tax demand.

The exercise will not only help the department in hastening processing and getting over the problem of refunds but also boost revenues, a source explained.However, the issue of processing post office returns still hangs fire.

After facing trouble with processing these returns last year, the government did not offer the option of filing of returns at post offices this year. Nearly 4 lakh individuals had used the post-office facility to file returns last year.

E-filing of income-tax returns was made mandatory for corporate assessees last year. It was formally launched by finance minister P Chidambaram on October 13, 2006.

The number of income-tax returns filed by corporates till the last date of November 30, 2006, was 2,88,471 compared to 2,01,059 filed till October 30, 2005. The number increased to 3.2 lakh till March 31, 2007.

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Finance news reporter covering taxation, GST, income tax, business compliance, and economy updates. I simplify complex financial topics into easy-to-understand articles for professionals, taxpayers, and business owners on leading finance and tax platforms.

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