The Central Board of Direct Taxes (CBDT) today said it has reduced the time period for tax refunds to three months and would take steps to release arrear payment as fast as possible.

"We have brought down time for refund...Timing of rectification at the Central Processing Centre (CPC) level has been brought down to 3 months and so," CBDT Chairperson Poonam Kishore Saxena told reporters here.

"Arrears are going to be released. From September 3, we have started demand correction fortnight. Adjustment would be done in a short while," Saxena said. 

She admitted that due diligence was missing in some cases and the department would try to sort out the problems.

Saxena also said in the last five years, the number of refunds disbursed by the Income Tax department stood at 35.20 crore, out of which 20.61 crore refunds were done through bank facility.

In the current financial year as on August 2012, the number of refunds disbursed stood 33.51 lakh, out of which 33.15 lakh refunds were executed through bank facility.

In case of refund bank facility, refund directly goes to account of concern assessee.

Saxena said the target for direct tax collection of Rs 5.70 lakh crore for the current financial year would be met.

"The department is going on massive computerisation drive. We want to be identity blind. Attempts are to reduce interaction so that grievances are minimised," she said. (PTI)