Steps-to-be-taken-when-your-income-tax-refund-stuck-with-department.
PrintListen to this Article
Steps-to-be-taken-when-your-income-tax-refund-stuck-with-department.
Ideally, once you file your returns, the I-T department has to verify the information and any excess tax paid is supposed to be automatically processed and refunded. A cheque is supposed to be sent to the assessee’s address in four months. The amount can also be credited to his bank account (through electronic clearing system or ECS), if he has chosen the option.
However, the ECS option, which was introduced under the Refund Banker Scheme in 2007 to implement speedy redressals of refund issues, does not cover the salaried tax-payer in some cities like Mumbai ,though it covers 14 other cities.
The problem arises when the four-month period – as prescribed by the Central Board of Direct Taxes – stretches to, well, years. In fact, even the interest penalty (calculated at six per cent from April 1 onwards) for any delay has not helped matters.
I-T officials plead not guilty. “The technical problems relating to our systems actually cause the delays. At times, wrong computation of tax or even an incorrect address can lead to delays,” said an official.
Since high technology fails to live up to the promise of speedy refunds, you must resort to the good, old letter-writing art, and hope the postal route (a registered post) can make up for the technical snag.
But before you pick up the pen, you can go to the tax department, or NSDL-TIN (National Securities Depository Limited-Tax Information Network) websites.
Here are a few things to do:
Any defective filing from your/I-T’s side has to be solved by a rectification letter. If the issue is cleared, you will get your pending refund.
If there are no defects, you need to write a letter, along with copies of returns, to your Assessing Officer (AO), informing him.
No response in 10 days? Write another one. This time, to the Additional Commissioner of Income Tax (A-CIT). Attach a copy of the earlier letter to the AO.
Write another letter to the Grievance Department, with copies of letters to both AO and A-CIT.
Sometimes, a visit to the officers concerned may help sort matters earlier.
Cases are normally sorted within a month. If not, approach the nearest I-T Ombudsman’s office. The Ombudsman will write a letter directly to the I-T Commissioner, seeking details of your case.
This measure works most of the time, with results within a month or three at the most.
Category : Income Tax | Comments : 0 | Hits : 774
Income Tax Alert - Here Are 5 High-Value Transactions That May Come Under Scrutiny. Large Cash Deposits: Any cash deposit exceeding Rs 10 lakh in a financial year across savings accounts draws the attention of the income tax department. Even if deposits are spread across multiple accounts, the cumulative amount beyond the threshold triggers scrutiny. Fixed Deposits: Surpassing the Rs 10-lakh limit in fixed deposits within a financial year prompts inquiries regarding the source of f...
Delhi Court Sentences Woman to 6 months Jail for not filing the return of income (ITR) discussed. Accordingly, the accused is held guilty of not filing the return of income for the assessment year 2014-15 under Section 276CC of The Act. Accordingly, the accused is convicted for an offence punishable under Section 276CC of the Act," the court said in the judgement. "The convict is awarded a sentence of simple imprisonment for six months with a fine of Rs 5,000 and in default to unde...
Corporates, Non-corporates or government department all are procuring major part of services or goods from the MSMEs. There are provision under the Micro, Small, and Medium Enterprises Development (MSMED) Act, to ensure that businesses make payments to MSMEs within a specified time frame, and failure to which can impact the deduction claims for such payments. To facilitate timely payments to micro, small, and medium enterprises (MSMEs) and address the challenges faced by these businesses in rec...
In the Income tax act, the words “Turnover”, “Gross receipts” and Sales are used at many places. In the common business parlance, the terms sales and turnover are used interchangeably. However, as per Income Tax law, guidelines are available on the question of what constitutes turnover. Understanding the concepts of these words is necessary for the purpose of the tax audit. An audit is mandatory for corporate assessees, irrespective of the amount of turnover. In ...
Very Important Income Tax Update regarding Micro and Small Enterprises Section 43B-any amount remains unpaid on year end to creditors, being micro/small entity, beyond 45 days or less, as agreed or 15 days if no agmt, shall be added to taxable Income resulting in huge additional tax liability. Keeping such creditors unpaid is risky. If payment for purchases made from *Micro and Small units* remains outstanding on 31st March, there may be huge tax liability. Therefore...
Comments