New Delhi: The Union Cabinet has sanctioned an estimated Rs 4,241.97 crore to implement the next generation system that will include pre-filled tax returns form and faster processing of income tax return filings from next year.
The move will help in bringing down the income tax return (ITR) processing time to one day and hence speed up refunds, an official release said.
“This approval has significant benefits for the Department and taxpayers through various functionalities such as pre-filling of ITR and acceptance by taxpayer as a means to improve accuracy and to reduce refund/processing turnaround time drastically, facilitation to taxpayers in resolving outstanding tax demands; integrated contact centers for taxpayer assistance and tax payer outreach program through digital media and employer/partner accreditation program to bring significant enhancement in services to taxpayers” the release said.
Briefing media about the decision, Union minister Piyush Goyal said that the processing time at present for ITR is 63 days and it will come down to one day after implementation of the project.
Goyal said the project is expected to be completed in 18 months and will be launched after three months of testing.
The Union Cabinet also approved the expenditure sanction for the consolidated cost of Rs.1,482.44crore of the existing CPC-ITR 1.0 project upto FY 2018-19.