Message from Central Processing Centre (CPC)
In FY2012, CPC processed 1.32 crores returns, a 47% increase over FY 2011. Rectification requests received by CPC has dropped from over 10% of returns filed in AY08-09, to 6.5% in AY 09-10, to 3.8% in AY 10-11 and further to just about 2.9% in AY 11-12
FY 2012 saw several milestones / records set by CPC. Between October 2011 and December 2011 , the Financial Accounting System (FAS) at ITDCPC was revamped completely with three rounds of enhancements which resulted in a quantum jump in daily throughput. This resulted in:
a. Highest ever weekly processing of 7.06 lakhs in the week ended 30th December 2011
b. Highest ever monthly processing of 22.35 lakhs in December 2011
c. Highest ever quarterly processing of 53.6 lakh returns for Q3 2011
d. Week ended 6th January 2012, we generated and issued 1.9 lakh refunds
e. Consequent to the increase in throughput the average time for processing a return from the date of receipt of ITRV has dipped to below 40 days
f. Faster processing has also helped in a significant drop in refund reissue requests from 10% of refunds in AY 2009-10 to about 3% of refunds generated in AY 11-12.
Key Highlights-Financial Year 2012
Among other activities the following were key highlights of FY 2012.
- A countrywide email and post campaign was launched by CPC to inform the assessees of past tax demand lying in their names – over 17 lakhs emails and 8 lakh postal intimations were sent
- A new digitization platform was developed, and 1.6 lakh paper returns have been picked up in
March for processing.
- Facility for online request of Refund reissue to a new address and intimation request was launched in January 4.
- The Call centre headcount was doubled to nearly 60 folks and the portal used by the call centre was enhanced – this resulted in a miniscule call abandonment rate over the last few quarters and a significant improvement in call handling time
- For the first time ever CPC set up a demand management team to inform high demand assessees about the need to rectify their returns. An intense email, phone and even direct conversation with assessees helped in the filing of rectification requests reducing demand for over Rs3000crores.
- CPC also undertook several assesse / stakeholder interactive sessions in the year. This includes sessions in Bangalore, Chennai, Ahmedabad, Vijayawada, Guntur, Jalandhar, Ludhiana, Indore, besides interior locations in Karnataka like Mangalore, Belgaum, Hubli and Udupi. The latter sessions played an important role in reducing paper filing of returns across Karnataka.
- Besides meetings were held in CPC with key stakeholders like the Bombay Chartered Accountants Association, the Karnataka Chartered Accountants Association etc.
- CPC has also recommended several changes in the income tax forms and enhancement of validation checks when returns are being filed – a lot of which has been accepted by the department
- CPC also worked with the press to educate the public on the benefits of E filing of returns.
KEY CHALLENGES AHEAD:
Assessee education
Data entry mistakes by tax payers have resulted in
i. tax credits not being given to the tax payers due to use of wrong TAN nos, wrong dates of tax credits, amounts being rounded off instead of being exact etc
ii. refunds not reaching the assessees – non filling of MICR codes, bank account nos etc prevent faster disbursal of refunds
iii. number of other data entry errors result in returns being classified as defective, delaying the processing of returns
ITR V receipts
At this point nearly 20 lakh ITR Vs pertaining to AY11-12 have not been received by CPC. The ITD is
currently working on finding a solution to this issue. In the meantime all assessees whose returns are not yet processed by CPC are requested to call the CPC call centre or check in the Efiling website and confirm if their ITR Vs have been received. CPC has been periodically sending email and more recently SMS reminders to all the email addresses and mobile numbers which are stated in the ITRs, wherever ITRVs have not been received.
Defective Returns
Currently CPC is unable to process over 2 lakhs returns which have been classified as defective under CPC’s business rules. Assessees are requested to avoid errors mentioned below which are among the top reasons for the return to be classified as defective:
1. ITR 4 – The assessee has not filled Part A P&L or Balance Sheet or both and gross receipts as per and has entered a positive value in Schedule BP serial no1. This is the single largest reason for returns being classified as defective
2. ITR 4 – P&L “Sales/Gross receipts of business or profession” is greater than 60 lakhs and AUDIT INFORMATION not completely filled.
3. ITR 4S – has been filed but presumptive income u/s 44AD is less than 8% of Gross Receipt or Sales turnover u/s 44AE is less than Rs5000 p.m. per vehicle in case of heavy vehicles or`less than 4500 p.m. per vehicle in case of other vehicles.
4. ITR 4S – has been filled but Code mentioned under Nature of Business is 601 or 602 or 603 or 604 which are incorrect codes.
5. ITR 1- Tax Deducted as per Schedule TDS 1 is greater than GTI (Gross Total Income)
6. ITR 1- Tax Deducted as per Schedule TDS 2 is greater than GTI (Gross Total Income)
7. Depreciation claimed in Point 42 of Part A – P&L but Schedule DPM /DOA not filled.
8. Mainly ITR 4- Deduction claimed under Chapter VIA under sections 80IA, 80IB,80IC, 80G but the relevant Schedules not filled
9. All ITR forms – Brought Forward Loss has been claimed at Point 9 of Part B TI but Schedule CFL (Carried Forward Loss) has not been filled.
10. All ITR forms – No Income details or tax computation has been provided in ITR but details regarding taxes paid have been filled and filed.
11. ITR 6 – Corporate assessee has filed ITR 6 but audit information is incomplete
12. ITR 4 & 5 – In audit information 44AB Flag is Y but Part A P&L and or Part A BS not filled.
13. ITR 4- Part A P&L and Part A BS not filled but entire tax is claimed refund which is more than Rs25,000.
14. ITR 1- 4 – Gender Mismatch – The Gender provided in the return does not match with that appearing in the PAN database.
E-Assessment through CPC portal is a very simple and friendly system which brings in great relief to the assessees and the over-loaded AOs.May this route be strengthened further and my best wishes to the Dept in this regard.
I have a suggestion: The CPC system while passing the order may allow credit for tax payments by assessees after filing the Return of Income,but before receipt of the asst order. This system check will save time and work connected with rectification petition,etc.
R Balasubramanian, Chennai.
It is my appeal to all tax payers specially Small and medium size Tax payers to read correctly the tax return and may consulted with the Tax expert else with the Tax department officials how to fill up the tax returns , but they are not doing the same. resulting which tax return of income , by way of Profit and loss account and Balance sheet as per suggested code wise information are not given. resulting which Tax returns are defective. Income Tax department is very much liberal now a days. But , who cares for help. Now a days more or less all types of assesses seems to be experts in this line. I have the opportunity to dialogue with my juniors and clients in this regards . they are all experts in fill up the tax returns. In my case though my income is less yet to fill up the forms ( ITR -4 ) it took me one day time. I must verify the figures twice with the figures appearing in my Balance Sheet and profit and loss account. Beside the Code no of My profession. Tds certificates are not always correct in all respect as per information. under this circumstances it will be difficult for the CPC to process the refund. Tax laws are complex in nature . One must consult with tax experts else to the Taxing authorities before filling the tax returns. Salaried tax payers are more expert of their filling Tax returns , suppressing their other sources, even from no 16 are defective, even though they posses efficient. after that when they are not getting their refund if any , they put their grievances to the Taxing authority. they are not inform correctly with in the due time of their investments or otherwise to the employers . After getting the form 16 they file it ( which are defective in nature ) assuming they will get refund of Taxes. House rent received from the employers are most cases vogues as they are staying with parents house and getting house rent. But parents are not showing that income as their rental income. which need to be thoroughly investigated by the taxing authorities.
CA. Subhash Chandra podder
Kolkata
18/06/2012
Agreed with the information given here above . Now a news every tax payers are not consulted with Tax experts. Resulting which these mis matched. Income tax departments are more or less friendly with the Assesses save and except Corrupt consultants and Taxing authorities . This is my experience.
CA. Subhash Chandra Podder
Kolkata
28/06/2012