Insight Instruction No. 76 issued by the Directorate of Income Tax (Systems) provides guidelines for verifying high-risk refund cases in Tax Deducted at Source (TDS). This comprehensive instruction aims to enhance scrutiny and ensure accuracy in refund processing. Let’s delve into the details of this insightful directive. Insight Instruction No. 76 sets forth a structured framework for CIT (TDS) verification of high-risk refund cases, ensuring transparency and efficiency in the refund process. By adhering to the SOP and guidelines outlined in this directive, tax authorities can effectively identify, investigate, and address potential discrepancies, thereby upholding the integrity of the TDS system and promoting taxpayer confidence.
Insight Instruction No. 76
DIRECTORATE OF INCOME TAX (SYSTEMS)
ARA Centre, Ground Floor, E-2, Jhandewalan Extension,
New Delhi-110055
F. No. DGIT(S)-ADG(S)-21 HRR/2023-24/
Dated: 02.04.2024
To,
All CCITs (TDS.)/ CITs(TDS)
Sir / Madam,
Sub. : – Functionality for Verification of High Risk Refund Cases for TDS charge officers at Insight – reg.
Kindly refer to the above.
2. TAN based cluster of High-Risk refund ITRs identified based upon certain rules have been disseminated to the CITs (TDS) for the purpose of verification.
3. Upon receiving the cluster, the CIT(TDS) may preferably allocate one or more cluster to a particular assessing officer (AO) i.e. DCIT/ACIT/ITO for comprehensive investigation.
4. AO’s need to verify the cases and provide one of the following feedbacks in Insight Portal after verification:
a) “No Further Risk Assessment required” or
b) “Further risk assessment required”
5. In this regard, SOP for verification of High-Risk Refund (HRR) cases by TDS charge officers is attached as Annexure-A. All the aspects mentioned in the SOP have to be examined in detail before submitting the feedback as mentioned above. Further, kindly refer to Annexure-B for Step-by-Step guidance on case view, verification, and feedback on Insight portal.
6. In case of any technical difficulty being observed, users may contact OR write to Insight help desk. (Helpdesk number- 1800-103-4216, Email id: helpdesk@insight.gov.in).
Yours faithfully,
(Abhishek kumar)
ADG(Systems)-2, New Delhi.
Copy to:
1. PPS to the Chairman, Member (S&FS), Member (TPS), Member (L), Member (A&J), Member (Adm.) & Member (IT & Rev.), CBDT and DGIT(Systems), New Delhi for information.
2. Nodal officer of ITBA, Insight i-Library, https://www.irsofficersonline.gov.in
ADG(Sys e s)-2, New Delhi.
Annexure A
F. No. Dir (Hqrs.)/Ch(DT)/07/Misc./2023
Government of India
Ministry of Finance
Department of Revenue
[Central Board of Direct Taxes]
Room No. 226, North Block
New Delhi, 20.03.2024
OFFICE MEMORANDUM
Sub: Standard Operating Procedure (SOP) for CIT (TDS) for verification of High-Risk Refund (HRR) cases (TAN level clusters)- reg.
It has been noticed that many return filers are claiming excess refunds through various means such as wrong claim of TDS credit, under reporting of income, over stating of deductions, claim of bogus expenses etc. Accordingly, some cases have been identified based upon approved risk rules for high risk refunds.
These cases consist of ITR filers, in which common employer Tax Deduction and Collection Account Number (TAN) have been reported. Details of such high-risk clusters are being sent to the respective jurisdictional CIT(TDS) for the purpose of verification of suspicion that whether false claims of refunds have been made in an organized manner or through a single key person. Such cases should be verified as per the procedure prescribed below.
Guidelines for handling high risk refund cases (TAN level clusters) disseminated by Pr. DGIT / DGIT (Systems):
1) Upon receiving the cluster, the jurisdictional CIT(TDS) may preferably allocate one or more cluster to a particular assessing officer of DCIT/ACIT/ITO level for integrated and comprehensive inquiries.
2) The Assessing Officer (AO) will get cases in Insight portal in Verification Module with a new case type- “High Risk Refund Cases-TDS”.
3) The AO needs to refer to the relevant Insight Instruction for accessing the case type and related details in Insight Portal.
4) The AO must submit timely feedback in Insight Portal after verification. The AO must give feedback as “No Further Risk Assessment required” or “Further risk assessment required” after verification.
5) CIT(TDS) may run an outreach program with cluster TAN Deductor where the AO has given the feedback “Further risk assessment required”, to sensitize the deductee with respect to the claim of deductions by the taxpayers in variance with the claim of deductions as per TDS return filed by the deductor.
6) While verifying the AO will take care of following aspects:
i. To examine if the TAN of the TAN cluster has been flagged in High-Risk Refund rules in 3 or more years out of last 8 / available years as available in Insight Portal. If yes, the feedback “Further risk assessment required” must be given.
ii. To examine if any penalty order has been passed or prosecution has been launched on the deductor for any TDS default in any of the latest 3 Penalty Orders /prosecution proceedings out of last 8 years as available in TRACES AO Portal. If yes, the feedback “Further risk assessment required” must be given.
iii. To examine if any demand u/s 201 was raised for 3 or more years out of last 8 years in TRACES AO Portal. If yes, the feedback “Further risk assessment required” must be given.
iv. To examine if the TAN of the TAN cluster has been reported in the TDS defaulter report in TRACES AO portal. If yes, the feedback “Further risk assessment required” must be given.
7) This issues with the approval of Competent Authority.
(Vikas Jakhar)
DCIT (OSD) HQ cum Dy CISO, CBDT
To,
All Pr. CCsIT
[Kind attention: CsIT(TDS)]
Annexure B- Step by Step reference guide
Navigation to Cluster Verification
1. After successfully login to Insight, user needs to navigate to Verification and Select “Verification” displayed under Cluster Tab to navigate to High Risk Refund- TDS Cases.
Navigate to High Risk Refund cases- TDS
2. User will be navigated to Cluster Case summary view to select High Risk Refund Cases- TDS. User needs to click on count as displayed below to navigate to Group Case List View.
Navigate to Group Case List View
3. In Group Case List view, user will be able to view Group cases created on Employer TAN
4. User will be able to download Group Case List excel having additional details like count of PANs in group cases, PAN name and PANs in group cases.
5. User will be able to reassign group in bulk from this view.
6. By clicking “Group ID” hyperlink user will be navigated to Group Case Detail View.
Group Case Detail View and Group Case level activities
7. At Group Case Detail View, user will be able to view Details of PANs available in group i.e. PANs Name, PAN, and Case id of Individual PAN.
a. User will be able to click on Case ID Hyperlink to navigate to Case Detail view of single PAN.
8. Following Group Case level activities will be available to the user at Group Case Detail Page
a. Reassign Case
b. Submit Feedback
c. Enter Comments
d. View Upload Case attachments.
Enter Comments
9. The following screen will be visible to user on clicking activity “Enter Comments”. User will be able to update comments in the case which will be visible to the user and all supervisor in hierarchy (In cumulative View).
Reassign Case
10. User will be able to Reassign Group case to the Reporting Officer and Subordinates in hierarchy.
Submit Feedback
11. This activity will be performed by ITD User to submit the Feedback on the Group Case.
12. The AO must give feedback as “No Further Risk Assessment required” or “Further risk assessment required” after verification.
13. Remarks will be mandatory.
14. User will also be able to add documents in support of the feedback.
15. On clicking submit button, Feedback will be submitted and the status of the case will be updated from “Under Verification” to “Verified”.
History of activities performed at Group Case Level
16. History of Activities performed at Group Case Level will be visible to ITD user at Activity Tab available at Group Case Detail view.
17. The page will display Activity ID wise activities with complete details of remarks and documents uploaded by user while performing the activity.
Case Detail View
18. The Case Detail page will display details of case available on individual PAN in the group.
19. The Case Detail page will provide detail of Verification Issue on the PAN
20. View hyperlink will navigate the user to Information Detail view.
Information Detail View
21. Information Detail view will provide detail of Information underlying the Verification Issue. TSN will be hyperlink which will provide detail of Information like Acknowledgement Number, Date of Filing, Form Type and Filing Type.
TSN Pop up view
Case Level activities available on Individual PAN Case
22. User will be able to below mention activities at Individual PAN Case level.
a. Enter Comments- This activity will allow ITD user to enter case level comments. The history of activity performed by ITD User will be visible to all supervisors in hierarchy (in cumulative view).
b. View upload Case attachments – This activity will allow ITD User to upload documents relevant to the case. The history of activity performed along with the documents uploaded by the ITD User will be visible to all supervisors in hierarchy (in cumulative view).
View Previous Years HRR Issue in Taxpayer Profile views
23. The user will be able to view the Details of the High-Risk Refund issues flagged on PAN of the Taxpayer in Previous years, if any, in Taxpayer Profile Views under Taxpayer Annual Summary (TAS).
24. User needs to select the relevant Assessment Year filter.
25. User will be able to click on view hyperlink and view the Verification issues of previous year acknowledgement Number wise.
Viewing the Feedback submitted in Respective PAN in Profile views
26. The Feedback submitted in bulk in the case by TDS user will be visible in Taxpayer Profile views of Respective PANs.
27. Any ITD User having level 2 access over PAN will be able to view the Feedback submitted by TDS Function Code user in HRR- TDS case under Taxpayer Annual Summary (TAS)>>Information>>uploads.
28. User will be able to view complete details of the Feedback submitted along with documents uploaded.
——End of Report——
