Prof. Krutesh Patel, CA

I filed Income Tax return of my client in July 2012 for assessment year 2012-13 which was very well before the due date of 31 July 2012. I filed another return of my client in March 2013, which was approximately 9 months late. But see the irony! The Return filed in month of March got processed and return Filed in the Month of July is still not processed.

What was the difference between these two returns? Apparently nothing. Both were nil tax Return, showing income below the taxable limit.  But there was a huge difference. The March return didn’t have any tax payable or receivable while return of July contained refund of tax.

Yes, Income tax department is playing smart. We studied LIFO or FIFO rule of work. But Income tax department has new rule. Process returns with nil tax liability or having tax demand. But don’t process returns which have refund payable. Why? If you don’t process return, liability to refund tax does not arise. That’s as simple as that.

Everyone knows that Government is striving of cash. Income Tax department could not meet collection target due to slow down in economy. Hence, they resort to window dressing. They are keeping taxpayer’s refund money at hold or raising income tax demand enthusiastically.

If you don’t pay your tax of Rs. 10,000, you will be served notices. Your bank accounts may be freezed or property may be auctioned. But the same rule not applies, when you have to claim your money back from government. They can keep your processing of return on hold, just because they don’t want to return your money. It is breach of trust which number of taxpayers has kept in new online system & in Income Tax Department. Just as government expects honesty from public, public also expects the same from government.

Government should take honest steps to ensure faster refund of taxpayer’s hard earned money which is legally due to them.

More Under Income Tax


  1. Robert says:

    People of India have full respect to all officers and employees of CPU and people of India are ready to worship them if they shown their efficiency and prove their efficiency .

    Government should aware next parliamentary election is not too far and if Government give more trouble , Tax payers will be forced to united under opposition parties .That will be not good for the Ministers of present Government .

    Pay Taxpayers and make them happy and make happy yourself also .

  2. Robert says:

    Taxpayers are very much afraid and they don’t have any trust on Government .There are so many top politicians in India who have large amount of black money is lying with Swiss Bank. People of India and all Taxpayers have been feeling insecure as Government is playing unexpected and bizarre game which is unbelievable .

    Are they now targeting Hard Earned Refund Money of honest taxpayers and will those monies will ultimately deposited in the Swiss bank account of different politicians ?

    Please raise your voice about such type of grave injustice against general people of India and honest Taxpayers . If possible , Taxpayers can conduct countrywide agitation against this Government immediately as this Government can give us scams only and they can only create trouble for General people of India .

  3. Robert says:

    Taxpayers are very much afraid and they don’t have any trust on Government .There are so many top politicians in India who have large amount of black money is lying with Swiss Bank.

    Are they now targeting Hard Earned Refund Money and will those monies will ultimately deposited in the Swiss bank account of different politicians ?
    Please raise your voice against this grave injustice of general people of India . If possible , Taxpayers can conduct countrywide agitation against this Government immediately .

  4. Khurshedkhan says:


  5. Robert says:

    Why medias also silent on this important issue ? Why Respected Arnab Goswamy ,Respected Rahul Kanwal or Respected Borkh Dutta not showing interest to highlight this corruption in media ?

    It is also Government backed corruption .Unity of Taxpayers urgently needed .Let us start an Taxpayers Association across the India by which Government can’t play one side game .

    Taxpayers should unite immediately to prevent such Government back corruption.

  6. Robert says:

    We may not aware whether Gang inside Government who is backed by politicians are thinking and plainning to conduct another 2G Type or Madhu Koda or Hassan Ali type of scams with the hard earned money of Taxpayers ?
    How can Ministers promise in parliament and violate their won promise in parliament .It is also surprising opposition parties are also silent in parliament in this issue .

  7. AAnand Prakash saxena says:

    Definitly due to this practice IT department is loosing integrity.
    Small and Rural Assesse are being haressed highly.

  8. Thaneshwar says:

    I am agree with this statement. I felt the same last month. Govt. should scruitinize the mistake where it is being wrong. and If it is order of any of the upper class officer, then it should punished.
    consequently, it should be prevented atonce.

  9. gkbarnwal says:

    Yes, 100% ture, My grand pa is a senior citizen, got deducted income tax on maturity of his Fixed deposit at SBI matured on 21.06.2011. Deduction was as for F.Y. 2008-09 Rs. 1924, for 2009-10 Rs. 2277, for 2010-11 Rs. 2435, for 2011-12 Rs. 5220, for 2011-12 Rs. nil. My grans pa is an ordinary villager have no exta income. He has no PAN. After this deduction, he applied for PAN and got alloted the same. With PAN, he requested to SBI to issue the TDS form 16A.SBI issued the Form 16A with PAN and details of Income tax deducted. When tried to fill e-return… there is no record of tax deduction at form 26AS under PAN. I lodged a complain at NSDL, but they told to contact SBI as it is fault of deductor (SBI), they didn’t rectified the tax details with your PAN. When contacted to SBI, they shown the reciept from Inocme tax department showing details of PAN and Amount deducted as tax. After many repeated attempts via e-mail, toll free no.of NSDL or tin facilitation center at Bangalore, or manually at local income tax office at Bokaro, Jharkahand, the result was null. And after passage of about two years, details of tax credit at form 26AS is still not updated as per form 16A of SBI. and the customer is in a fix, who is responsible for this fault. Whatever be the reasorn, the senior citizen, having limited income (under taxable limit), lost hope to get the return from the Govt. And be forced to believe the story of Prof. K. Patel that Income tax department is playing smart.Income tax department has its own rule. Process returns with nil tax liability or having tax demand. But don’t process returns which have refund payable. Why? If you don’t process return, liability to refund tax does not arise. That’s as simple as that.Whatever be the reason, tax once deducted need not to be returned. Its very disappointing, very-very disappointing….

  10. MANOHAR CH L (CA FINAL) says:

    Yes, seems to be ture, when compared to last year (Asst.yr 2011-12)manual refunds are slow than e-filed returns. Where as for Asst.year 2012-13 the position is reversed manual refunds are faster than e-filed return cases. I didnt get any refund of my clients well filed online in August 2012, still. When contacted Toll free number, they used to say ” Return under process” and they are not in a position even to estimate the time of issuing of refund approximately. Its very disappointing.

  11. s k sharma says:

    Refunds too are processed quickly but problems comes when a person claim refund and his TDS payments do not match and in such cases processing of refunds means creating infructuous demand. Matching of TDS entirely depends upon intermediatories who are entering transactions and sending amouns to NSDL for uploading to Incometax. In case TDS is matched properly, there is no reason to withheld refund by incometax in any case. Processing of such returns are avoided just to keep away assessees from infratuous demand and harassment too. Otherwise i do not see any other reason not to process return. Another problem is that when assessee claims refund and in case of TDS mismatch demand is created, that demand goes to CPC banglure and a notice is sent from banglure to deposit the same and assessee is asked to contact his Assessing officer to clear off the issue and in case assessee does not reply or do not contact AO, this demand is likely to be adjusted in next year’s refund. This way this is a unnecessary harassment to the tax payer just becoz his TDS remained unmatched. It is therefore necessary to get 26AS downloaded before filing Tax returns. This shows correct amount sent to incometax by NSDL. If TDS claimed reflects in form 26AS and matches with that of actual TDS, there is no reason for the AO to withhold one’s refund. If the assessee is able to resolve such issues quickly,

  12. Asokan T says:

    I had different problem. My return claim for the year 2012-13 was adjusted for year 2009-10(which was enter manual).But the 26AS does give any balance still the IT had adjusted the exact amout what I claimed for refund. No information from the adjustment whether it is correct or I have to pay further. How to get the details since I filed online?

    IT is not honest on the assesment details.

  13. sajid sk says:

    FM should take steps for transparency in process of Income tax return or otherwise stop Income Tax collections. Government should reply for the same in parliament and draw a road map which should be honest and justifiable at par with demand recovery.

  14. RL Garg says:

    Either Finance Miniser or CBDT should issue instruction / circulars to pass assessment orders on the basis of First come first served and refund be made. It will avoid corruotion as the tax officials to not issue refunds unless you fratify them. There should be provision in Income Tax Act that interet on delayed payments be either recovered from the person concerned who is sittin on the file or adverse remark be given in their Annual Report and be given due weightage on promotions by giving minu marks. The problem must be addressed immediately;
    Some time the Assessing officer alo pas eretic order to satisfy hi whim because tye asessee has not agreed to his illegal demands. uch cases should also be reviewed in Annual Confidential Reports.

  15. s c kapur says:

    Totally agreed with comments offerred so far. Income Tax Department needs to be answerable. But appears they are not bothered to process pending Refunds.

  16. CA. Nitesh says:


    I filled various return in July and even after that but returns having refund did not yet processed but which have nill liability or which had some refund up to Rs. 2000/- got processed.
    Department is good at Window Dressing. But we people as professional should do something to get fair system of return processing.

  17. अनिल किशोर says:

    I have filed my tax return with no refund before 31.7.12 but till date they have not processed it. I don’t think that there is any rule for processing of ITRs.There seems no monitoring at all. Unless things are reported to their higher authorities, the things may not improve.

  18. Prashant Bamane says:

    Totally agreed………for refund they are taking 1-1 year to proceed…but for tax payment they issue notice within15-30 days aftr filing return(if tax not paid earlier)

  19. Abhishek says:

    Sir…to tackle such matters, the people have to come together and file PIL’s against the govt. departments, govt. employees & government itself if such practices are being followed. there are various laws in this country which makes it difficult for honest taxpayers to remain focussed on their business and. i strongly feel a charitable organisation which hires CA’s, advocates etc needs to be set up which will stand up and support honest taxpayers and enterpruners of our country and work towards transparent and simpler laws.

  20. mhd says:

    But ultimately Income Tax is going to suffer in long run. For instance many of my clients have not paid advance tax and are ready to pay SA tax with interest in order to avoid any refund position. IT cannot take public as fool, if public gets smart, govt will suffer even badly. In getting smarter Govt is losing its creditibility and integrity. The best smartness is in being honest and friendly to assessees.

  21. CA.Subhash Chandra Podder says:

    I understand the the point – discussion / deliberation of Prof.Patel , CA. I have also the same experience as like as of Prof. Patel.
    I have filed my Income tax return for the assessment year 2012-2013 ( financial year ended on 31/03/2012 in the month of July 2012 ( due date 31/07/2012 ) having refund due ( deducted and deposited by one of the Public sector bank ,for my professional assignment , deducted and deposited in the month of MAY 2011, by the Income tax department . As per notification tax refund amount will be refunded with in three months from the date of filing of Tax return ( previously it was with in Six months ) , No refund has yet been given by the tax department .
    While I submitted on behalf of my clients in the month of July 2012 as Loss return has been assessed ( assessment year 2012-2013 – financial year 2011-2012 )
    Further also submitted belated return in the month of March 2012 for the assessment year 2011-2012 – financial year 2010-2011 as loss return has been assessed .
    Then why my refund has not yet been given by the Income Tax Department ?
    Reasons well narrated by Prof,Krutesh Patel , CA

    CA. Subhash Chandra Podder , FCA

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September 2021