Indian taxpayers are expected to start receiving refunds from the Income Tax department more quickly, thanks to a new filing system that is due to be implemented over the next 18 months.
The aim of introducing the Integrated E-filing and Centralized Processing Center 2.0 applications is to promote voluntary tax compliance by providing faster and more accurate outcomes for taxpayers.
The system will reduce the time it takes to process returns to just 24 hours from 63 days and be launched following three months of testing, Union Minister Piyush Goyal told the Hindustan Times after a cabinet meeting. The government selected IT firm Infosys Ltd to implement the project after a competitive bidding process.
“The turnaround time to process an income tax return will reduce from 63 days to one day,” Goyal said. “In case of rectification requests, the duration will also come down.”
He added that the number of rectification requests was also expected to drop from a current 2% of the total to 0.1%. “We’ll be able to give more facilities to the taxpayer - whether it is real time processing, grievance redressal or spreading awareness - all through the digital medium,” Goyal said.
The Cabinet has already sanctioned more funds for the existing Centralised Processing Centre-Income Tax Return [CPC-ITR] 1.0 project up to 2018-19, he added.
Chartered accountant Satyendra Jain believed the move to the new system would benefit both the taxpayer and the government, according to Financial Express.
“It takes almost two years in getting refunds after you file your tax returns. This time will be significantly reduced,” he said. “If returns are processed in just 24 hours, ideally, refunds should come to bank accounts of taxpayers instantly. It shouldn’t take more than a week.”
The move will not only cut government transaction costs, which include interest payments on late refunds, but also reduce the work load on staff currently engaged in processing tax returns, Jain added.
Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.
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Indian taxpayers are expected to start receiving refunds from the Income Tax department more quickly, thanks to a new filing system that is due to be implemented over the next 18 months.
The aim of introducing the Integrated E-filing and Centralized Processing Center 2.0 applications is to promote voluntary tax compliance by providing faster and more accurate outcomes for taxpayers.
The system will reduce the time it takes to process returns to just 24 hours from 63 days and be launched following three months of testing, Union Minister Piyush Goyal told the Hindustan Times after a cabinet meeting. The government selected IT firm Infosys Ltd to implement the project after a competitive bidding process.
“The turnaround time to process an income tax return will reduce from 63 days to one day,” Goyal said. “In case of rectification requests, the duration will also come down.”
He added that the number of rectification requests was also expected to drop from a current 2% of the total to 0.1%. “We’ll be able to give more facilities to the taxpayer - whether it is real time processing, grievance redressal or spreading awareness - all through the digital medium,” Goyal said.
The Cabinet has already sanctioned more funds for the existing Centralised Processing Centre-Income Tax Return [CPC-ITR] 1.0 project up to 2018-19, he added.
Chartered accountant Satyendra Jain believed the move to the new system would benefit both the taxpayer and the government, according to Financial Express.
“It takes almost two years in getting refunds after you file your tax returns. This time will be significantly reduced,” he said. “If returns are processed in just 24 hours, ideally, refunds should come to bank accounts of taxpayers instantly. It shouldn’t take more than a week.”
The move will not only cut government transaction costs, which include interest payments on late refunds, but also reduce the work load on staff currently engaged in processing tax returns, Jain added.
Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.
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