Is this the new face of Indian Income Tax?
It is nice to see this tax-payer friendly action on the part of the Income Tax Department and let us hope that this may be the harbinger of many more good things to come
 
Hope you filed your income tax return (ITR) by now. The earlier you file your return, quicker you will get the refund, if due to you.  If you file your tax returns accurately and with care, chances are that you will get the refund due to you much earlier than last year. Can you believe that this could happen in India? Read further.   
 
 A senior citizen conscious of his responsibility to the State, took pains to personally file his income tax return in the last week of July 2015 for the assessment year (AY) 2015-16, i.e. for the fiscal year 2014-2015. The return was filed online on 30 July 2015 claiming a refund of a few thousand rupees, as his bank had levied tax deducted at source (TDS) on his fixed deposit, which he had to claim back from the Income Tax (I-T) department. As a law-abiding citizen, he had filed the return a month earlier, as this year the last date for filing the return had been extended till 31 August 2015. 
 
A week before e-filing the return he had linked his Aadhaar number with his income tax account in the website of the Department on reading from the newspapers that this would facilitate the verification of his tax return as and when it is filed.  As soon as he filed the return, there was a pop-up on the computer screen asking him to verify his return through various options including through Aadhaar. Within a few minutes of his clicking the Aadhaar option in the pop-up on the computer screen, he received a one-time password (OTP) on his registered mobile. When he mentioned the OTP on the screen, he instantly received on his computer the income-tax return acknowledgment with a notation “Do not send this acknowledgement to CPC, Bengaluru as the return has been electronically verified.” 
 
This simple step saved him the trouble of physically sending the ITR-V duly signed to the Central Processing Centre (CPC), Bengaluru, by post, as done last year.  Thus, ended the onerous task of filing the tax return and he thought that he has now to wait at least for six months, if not more, to get the refund, as he had received a similar refund last year, after about six months of filing the return. 
 

And the wait for refund is over:    

Last week, on 20 August 2015, to his great surprise, he received an SMS from the CPC of Income Tax Dept reading as under: “Refund for Ack No. xxxxxxxxx for PAN No.xxxxxxxxxx for AY 2015-16 has been issued by CPC. Kindly check the status on http://tin-nsdl.com after 3 days.”  And on the 21 August 2015, he got another SMS from his bank that his savings bank account has been credited with the refund amount received from the I-T Department. All this happened within 22 days of filing the tax return. 
 
This may appear a miracle, but it did happen in our country. There was neither any influence nor the use of any contacts to get this refund so fast. It really came in the normal course.  And I understand that there are a couple of more instances of getting the refund so fast this year. Obviously, the Income Tax department appears to have put its house in order and taken steps to fulfil some of the expectations, if not all, of the tax payers, and this is really commendable. 
 
It is anybody’s guess as to whether this is the new people-friendly face of Indian Income Tax or just a flash in the pan. In any case, it is nice to see this tax-payer friendly action on the part of income tax and let us hope that this may be the harbinger of many more good things to come. 
 
(The author is a financial analyst, writing for Moneylife under the pen-name ‘Gurpur’.)
Comments
Saturn Solar
9 years ago
You are calling this a miracle - getting a refund in 22 days. For me it happened in 12 days. Kudos.

It proves, again, appropriate technology adoption can kill corruption and inefficiency.
Dahyabhai S Patel
9 years ago
IT Department now informs and earlier was sending refund and interest advice as a single figure where you will have to refer the copy of your return and subtract the refund amount you claimed and the refund amount ITD has paid you back with interest. Whether this amount of interest is taxable or not, I do not know!!!

The ITD must supply how and at what rate the interest is calculated. The rate must be at least the same at which they charge us for late payment, and logically the rate must be higher. Even penalty also must be there for late payment of refund as a natural justice.

Besides the interest must be calculated from the dates of payment of advance ITs going backwards.
Meeta Agarwal
9 years ago
The refund of Income Tax in 20-22 days is still far from my expectation. I remember in 2001 while filing manual return in IT office and asked when I will get refund, The IT assistant taunted that even after one year, IT may not see your return and this is not USA. I simply give response that a day will come when refund is given by IT immediate or within 24 hours in my life time.
I request IT for immediate refund after filing the return for some rider like if refund is less than 30% if Tax paid, Income is less than 8 Lacs, income is only from Interest particular senior citizens.
Return form should be available from 1st april onwards as we have to wait for 2-3 months to notify forms by IT.
Dahyabhai S Patel
9 years ago
This process started quite before the promises of fake "achchhe din" which is a nothing but jumla like crediting Rs.15L in every Indian's account!!!
Gurudutt Mundkur
Replied to Dahyabhai S Patel comment 9 years ago
were we not naïve to believe that we could credit of Rs 15 lakh without working for that amount?
We should by now not to believe politicians as a class until they implement what they profess. Until then, take their intentions with more than a pinch of salt.
Gurudutt Mundkur
9 years ago
Glad you could get something to appreciate.
Achhe din aane shuru huvay hai!
Gurudutt Mundkur
9 years ago
Glad you could get something to appreciate.
Achhe din aane shuru huvay hai!
P Jayaram
9 years ago
I am also a senior citizen. I also filed my returns in July 2015. I did not link with aadhar. I got my refund in third week of August 2015, a full one week before the last date of filing. Kudos to all concerned.

Jayaram
Rangachari Krishnan
9 years ago
I pinch myself! Am I in BHARAT?
Rangachari Krishnan
9 years ago
I pinch myself! Am I in BHARAT?
Dahyabhai S Patel
9 years ago
Deducting TDS for FD interest results in less income for FD holder and so lesser IT on that less income if any on the FD Interest besides lot of paper work and power consumption of server for internet use (ecology damage), extra useless work for bank and IT Department employees. So logical is not to deduct the same for the FD Holders who regularly file IT return!!!!!
Salim Ahmed
9 years ago
I think i am luckiest one, filed return on 27 August and received return in bank account on 3rd September. Yes we are now living in progressive India...
TIHARwale
9 years ago
it is nice tax payers are able to get refunds in less than a month of filing returns. However tax payers who had filed manual for AY 2009-10 2010-11 still getting demands for TDS recovered by Banks but getting reflected in different AY but I.T.Department is not making any effort to set of by looking into preceding or succeeding AY and doing adjustment at their end. Instead thy are raising demands but at the same time not refunding excess wrongly reflected in another year. if they do this elementary check they can settle returns of both the AY.
Avinash Gupta
Replied to TIHARwale comment 9 years ago
Dear sir, I have faced this problem with ITD. After spending lot of time in writing to them, for which no response was received, I finally decided to meet the jurisdiction officer personally. I went to the office and met the dealing person. Two of five matters were resolved immediately. Later I found out no. of Additional CIT of my ward and met her after an appointment. She was extremely helpful and two more cases were resolved the same day. One case is still pending. However, it has something to do with system and local staff is unable to rectify it. However, I am optimistic to resolve the same after some more follow up with ACIT or above. Suggest to go personally rather than sending someone else.

TIHARwale
Replied to Avinash Gupta comment 9 years ago
Good that your issues got resolved
S K Gupta
9 years ago
Yes I will agree the current govt is putting a lot of effort to clear the mess created by previous Govt.
Subhash
Replied to S K Gupta comment 9 years ago
it has nothing to do with previous Govt. You can see big improvement in EPF updating also and things dont change overnight. The infrastructure for all this take years - so let us applaud the good work and give credit to the dept. but dont blame previous Govt. I hope you dontt give the credit of Mangalyan launch also to present Govt.
Avinash Gupta
Replied to S K Gupta comment 9 years ago
I think this is partisan comment. This has nothing to with present government. It is a direct consequence of computerization efforts undertaken by the IT department during last decade.
manhar kothari
9 years ago
yes one of our family member got IT refund of AY 2015-16 within 15 days of submitting IT return on line linking his Adhaar number.
We were surprised with this efficient way of working by Income Tax department.
We wish to congratulate department.
Avinash Gupta
9 years ago
I have even a more amazing story of what IT Department is doing. I filed my return on 19/08/15 which was verified online. The return was processed and refund credited to the bank account on 28/08/15 i.e. in 10 days. Intimation u/s 143(1) was received in my e-mail on 01/09/2015. I am happily stunned. Wish to thank the IT Authorities through this post and wish them all success in this endeavour.
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