The income-tax department that faced flak from many quarters for late payment or non-payment of tax refunds, has been now asked to beef up its automation that does not seem to have helped much for the pending refund claims that could take even four years to be processed. The late payment of refunds has also burdened the exchequer with interest of Rs 5,785 crore for late refunds during 2008-09.
“A decade of computerisation by the income-tax department has gone by but the pendency rate of refund claims is on rise…we recommend that the department identify the gaps in automation,” the official auditor comptroller and auditor general (CAG) said in a report on income-tax refunds that was tabled in the Parliament on Friday.
Taxpayers have also been inconvenienced as their refunds were adjusted against outstanding demands, sometimes erroneously, without even informing the taxpayer, the CAG said. It was also found that the weakened controls had lead to wrong refunds that still remain undetected. In fact, examination of the samples selected by the CAG showed that erroneous refunds amounting to Rs 136 crore were sent to people.
The comptroller and auditor general has also suggested extension of the refund banker scheme that is only available in some cities now.
Along with stressing the need for monthly monitoring of the refunds so that they can capture the delays in the stage of processing, the biggest bottleneck according to the CAG.
Moreover, the departmental staff also has to be sensitised to think themselves as the service providers working for the customer satisfaction and the assessment officers should surely follow the automation process.
The government has been consistently been aiming to increase its tax base though the tax refunds claimed by tax assessees has always been a concern.
However, the tax department has also been claiming that the refund payments have increased and they have been trying to speed-up the refund process.
Not only staff. Do the IRS officers know their job? All CIT(A) take exception to case laws being cited. They plainly want 40% of the total demand and the future penalty leviable. You pay and buy the prder Same with 264 orders. Same naturally with ITOs for 154 order. There is not one competent officer in IRS and whole department. And those who are competent and honest are punished and humiliated. Post retirement jobs and elevation to CBDT, etc are for those who “serve”. The knowledgeable officers and practitioners suffer humiliation only. So dony blame the staff who must collect for the bosses from top to bottom to stay in paying posts.
IT depp. is not properly equipped with skilled staff 2 operate computers.Over the yrs.work has multiplied,but the staff has not popotionately increased.Refund work needs to be entrusted to banks who charge substantial amount of collection chsrges.
One of the preamles of Income Tax system is ‘to rob Peter to pay Paul’. Now in the case of TDS and refunds/demands on the basis of IT returns the preamble is “to penalise Peter for the fault of Paul’ because if the deductor does not pay the TDS or does not file the TDS returns correctly the sufferer is the assesse from whom the the tax is deducted and not the deductor who has committed mistake.
It is indeed like a whiff of fresh air to a sinking and hopeless man to be able to read the Hon’ble CAG’s observations on the totally-collapsed system of issue of income tax refunds. And this is not a “problem”, but in reality a very strategically and deliberately built system created over decades for ulterior motives and the top to bottom in the department are involved. As a result, it is no more a question of a tax payer’s right to get refund of the excess tax paid/deducted at source, etc., as Smt. B. Matiyani had reportedly said to the press on the eve of demitting her office as Ombudsman, Delhi. The greater menace is that of being denied the rightful credit for the TDS from the deposit of pensionary benefits and interest received from banks. There actually are lakhs and lakhs of sufferers all over the country in this boat [see ……below] and, I am very happy to say (out of a prvert sense of revenge) that, after their “TOTAL AND FINAL” retirement from government jobs, the high officials of the department will be in this boat too.
But do these serving time-servers ever ponder over the plight and agony of thousands of the old people who are notified, first by the NSDL that there is no evidence with them about any TDS whatsoever made by any authoity/bank, etc., and implying that there will not be any credit for any TDS! The inevitable result is a notice for a huge demand from the Deptt. inclusve of the interest for the unpaid tax/shortfall in tax payment and the mandatory interest thereon and also the inevitable notice issued for penalty for concealment of income/making a false claim for TDS .
The point I am trying to make is that, the refund-related racket of extracting forcefully bribes from ordinary tax payers has been a part of income tax department’s work culture for decades and, after computerisation, the extent and poison of this menace has only increased. And the Ombudsman simply DOES NOT DO ANYRHING TO REDRESS THESE GRIEVANCES.
It is also necessary to realise and accept the fact that the serving officers are also the product of and subservient to the existing system. So, it is unwise to expect any meaningful contribution by way of suggestions to improve the system itself as they cannot reasonably be expected to ignore the pressures fro the superiors as well as the non-cooperation from the subordinates in the field. Therefore, if the government really means business, a committee should be constituted with a CPI-M leader as chairman and a few retired (but honest and competent) IRS officers, fewer serving IRS officers who have sufficient “field” experience and, of course, union leaders from the staff as well as the officers. In fact, the CAG can have an IA&AS officer as its Member-Secretary.
Unless the Government takes serious steps to improve the System assessees will continue to suffer. Senior citizens are the worst sufferers. I was told by one of the ITOs, that I should file Form 15 to the Bank and pay advance tax in case tax is payable to avoid this harrasment.
I have read the comments of CAG about the slow process of Income Tax refunds, its effect on the revenue loss by way of interest on the refund due. The only reason for late payment of Income Tax refund which I observed is that the interest of Income Tax Officers, Inspectors and clerks is to get bribes from the Assessee for issuing their Refund Orders early. These government servants are require to provide the service to customer truly but these people are doing the wrong things which is not in the interest of the Revenue. there should be some powerful provisions in the Act which will stop this corruption process in our country. The officer who is held guilty of his service be hang till death.
I think one problem is that TDS information is not filled properly and timely by banks. Could be PAN related problem too. Some bank say UTN is discontinued & other are issuing TDS certificates with UTN. How they manage to get UTNs if UTNs are discontinued? I have received TDS certificates from one bank with UTNs. Other issued TDS certificates without UTNs. On inquiring it says UTNs are discontnued. Kindly send your comments specially on UTNs on my E-mail address rkj951@yahoo.com. Thanks, RAKESH