I-T Dept streamlines tax refund procedure

In a move that will speed up the issuance of I-T refunds, the Income Tax Department for the first time will accept all TDS credit and refund claims not exceeding Rs 3 lakh and Rs 25,000, respectively.

Last Updated: Jul 22, 2010, 18:09 PM IST

New Delhi: In a move that will speed up the
issuance of I-T refunds, the Income Tax Department for the
first time will accept all TDS credit and refund claims not
exceeding Rs 3 lakh and Rs 25,000, respectively, at the stage
of processing of income tax returns itself.

The Central Board of Direct Taxes (CBDT) has communicated
the order applicable for the assessment year 2009-10 to all
the Chief Commissioners of Income Tax in various tax
collecting ranges across the country.

"The I-T department has taken the step to fasten and
streamline the process of issuing refunds. The order will be
beneficial in view of the income tax returns filing, which
will happen till this month end," a senior I-T officer said.

In all other remaining cases, the claims would be
processed after proper verification, the officer added.

"In all the returns filed in ITR-1 and ITR-2 for
assessment year 2009-10, where the aggregate TDS claim does
not exceed Rs 3 lakh and where the refund computed does not
exceed Rs 25,000, the TDS claim of the tax payer shall be
accepted at the time of processing the return," the order
stated.

ITR-1 deals with pensioners` income and others, while
ITR-2 deals with income from house property and others.

"In all the returns filed in forms other than ITR-1 and
ITR-2 for the assessment year 2009-10, where the aggregate TDS
claim does not exceed Rs 3 lakh and the refund computed does
not exceed Rs 25,000 and there is 10 per cent matching of TDS
amount claimed, the TDS claim shall be accepted at the time of
processing of the return," the order added.

PTI