The time limit of 30 days for refund adjustment has been reduced to 21 days.
After this instruction, the officers will have to answer the complaints of the taxpayer in 21 days.
Experts said that the new instructions will help in solving the difficulties of taxpayers.
New Delhi. The Income Tax Department has given a big relief to the taxpayers regarding refund adjustment against the outstanding tax. Tax officials will now have to take a decision in such cases within 21 days. This decision will reduce litigation. The Directorate of Income Tax (Systems) said that the 30-day time limit given to the assessing officers to take a decision has been reduced to 21 days. With this decision, the possibility of getting refund to taxpayers has increased.
According to a statement, “If the taxpayer does not agree to the adjustment or partially agrees, the case will be immediately forwarded by the Centralized Processing Center (CPC) to the Assessing Officer, who will give his opinion to the CPC within 21 days that Adjustment can be made or not.
This decision will reduce litigation
Rajat Mohan, senior partner, AMRG & Associates, said that in many cases involving adjustment of refunds, the CPC found that refunds were incorrectly adjusted due to misclassification of demand or non-receipt of response from the assessing officer. In such a situation, unnecessary litigation took place. He said that after the latest instructions, the taxpayer’s complaints will have to be answered in 21 days.
Will help in solving the problems of taxpayers
Earlier, the Income Tax Department has told its top officials including all its Principal Chief Commissioners that the department has seen instances of wrong adjustment of outstanding tax demands against pending refunds to taxpayers. The Directorate of Income Tax had said that this usually only increases the tussle between taxpayers and officers. Under the law, the tax authority can adjust the refund on account of outstanding demand after issuing a notice to the taxpayer.
Experts said that the new instructions will help in solving the difficulties of taxpayers. Because the officer now has only 21 days to respond to taxpayers’ complaints. Explain that the Income Tax Department is focusing on speedy processing of tax returns and issuing refunds quickly. Official figures show that in the current financial year till November 10, the department has issued 1.83 billion rupees in refunds, which is 61 percent more than the refunds issued in the same period a year ago.
(with input from language)
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FIRST PUBLISHED : December 04, 2022, 15:54 IST