Happy news for all tax payers, specifically those who are claiming a Tax Refund in their ITR!
Towards its steps to bring delight to taxpayers, the Income Tax department has put in action a new plan where it will be ensured that any tax refund (claimed in the ITR) is safely deposited in their personal bank account directly (through ECS process) as soon as it is processed and released.
Presently, as per the tax department policy, all the tax refunds for a value of more than Rs 50,000 are issued via cheques through the postal department. Now, the department is planning to fully adopt and use banking services to end this current system.
CBDT Chairperson Anita Kapur, during a recent interaction with the media, said that a plan is being worked out on priority and is aimed at bringing an end to taxpayers’ grievances regarding this particular service.
The Chairperson further said that CBDT is in touch with banks and RBI, after it found that the problem of wrong refunds or no refunds at all was continuing unabated. She said that RBI told them that in the e-environment, when a refund is sent directly to a taxpayer’s bank account, the existing protocols are such that banks do not match the name to the account number.
The Chairperson mentioned that under the present system the tax payers are facing lots of hardships. Hence, considering all the factors, their department has started working towards bringing ECS system for all refund claims.
The CBDT Chairperson also said that Prime Minister Narendra Modi had some time back held a review in this regard following which she had written to her field offices to ensure that the message of facilitating the convenience of taxpayers percolated through the ranks.
This article is useful and relevant for all ITR filers in India i.e NRIs, Expatriates and All Other ITR Filers. It also clarifies various general doubts & frequently asked questions of ITR Filers, in relation Income Tax Refund, such as:
- How shall I get my TDS, Income Tax Refund back?
- How shall I get my refund cheque if tomorrow my address gets changed? Cannot I get my refund through ECS?
- I want to have my refund through ECS to avoid the hassle of first receiving and then depositing the cheque?
- I feel very inconvenient in receiving the tax refund by cheque? I am more comfortable to receive it through ECS?
- I am an NRI. If I will receive the Tax Refund by cheque, it will be very costly and inconvenient for me to get the same credited into my account? I am more comfortable to receive it by ECS.
- Due to change in address, my refund cheque was returned back to IT Deptt as undelivered. Now, it is a big inconvenience, delay and cost for me to get the IT Refund back. If it can get directly credited to my bank account that would be very convenient to me?
- Due Date of ITR for FY 2014-15 (i.e. AY 2015-16)?
- Information Required in relation to getting income tax refund?
- Points for consideration in relation to Income Tax Refunds of NRIs/Expats ITR?
By NRI Tax Service: June 25, 2015