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Excess tax deductions may be refunded electronically
New Delhi,June 01: In a bid to make Income Tax department more `people-friendly`, government is contemplating a move to refund excess tax deductions `electronically` into the bank accounts of the payees.
New Delhi,June 01: In a bid to make Income Tax department more "people-friendly", government is contemplating a move to refund excess tax deductions "electronically" into the bank accounts of the payees.
This move comes close on the heels of the Government deciding to outsource issuance of Permanent Account Number (PAN) to the UTI services so that the work was completed quickly.
Official sources sad that "electronic" transfer of excess deduction was likely to begin from this fiscal and the Income Tax Department would make mention of bank accounts mandatory for the payees while filing their returns.
This would enable the department to send a statement to the Reserve Bank of India (RBI) so as to transfer the amount directly to the payee's account.
In another move to make simpler rules for the tax payees, the IT department was also planning to nominate certain "registered agents" like Chartered Accountants and consulting firms who would certify the accounts and transfer them online to the Income Tax department.
Bureau Report