Income tax refund process eased

In a bid to tone up tax administration and provide speedy relief to taxpayers, the Centre has simplified the procedures for income tax refunds. Central Board of Direct Taxes (CBDT) has also decided to discontinue with the system of separate refund books for refunds up to Rs 9,999 and those of Rs 10,000 and above, official sources said. ‘‘The board (CBDT) has decided to simplify the procedure for issue of refunds by discontinuing the system of sending advice note to the bank separately in cases of refunds up to Rs 9,999,’’ the release, said explaining the simplification of the procedures for refunds up to Rs 9,999.

Stressing that the procedure for issue of refunds up to Rs 9,999 would be identical to the existing system for refunds up to Rs 999, it said the revised refund order book would include—refund order, advice of refund and the counterfoil of refund and advice. In the case of non-MICR category, the conventional refund order book has been replaced by refund book order format in cheque book form for refunds of up to Rs 9,999 and that above Rs 10,000, the release added.

It, however, said in ranges, where refunds were to be prepared on the pre-printed continuous computer stationery (PPCCS), the procedure of issue of refunds would be the same. The move is aimed at not only bringing down the time cost for the income tax department, but also would benefit the taxpayers by facilitating expeditious refunds, which had always been a creeping problem cited by the taxpayers.