CBDT to save Rs 4,400 cr on interest payout

Kolkata: The Central Board of Direct Taxes (CBDT) will save an estimated Rs 4,400 crore in interest payout in the current year by preponing tax refunds and clearing the backlog.”We will save Rs 4,400 crore in the current year for preparing the refunds and clearing the backlog of the refunds,” chairman CBDT Sudhir Chandra said.

He said for the assessment year 2010-11, CBDT has already made refunds for 5.4 lakh accounts between April 1 and 10, 2011 and backlog of some 5-6 lakh that would be cleared by April 20.

In 2009-10, CBDT has made record refund of Rs 72,000 crore as the board has decided to begin Direct Tax Code era from April 2012 with a clean slate, Chandra said.

Chandra said the notification to effect the Union Budget proposal for exempting small tax payers income up to Rs 5 lakh from filing tax return will be issued by June.

Speaking about issues pertaining to tax deducted at source, he said, “All issues would be taken care of in the next 15 days.”