I-T dept should speed up refunds, pay 12% interest on delays: Panel

Taxpayers will not have to wait for two-three years to obtain their income tax (I-T) refunds, if suggestions given by the I-T simplification committee headed by retd Justice R V Easwar are accepted. In addition to proposing scrapping of an I-T provision, which provides an avenue to delay issue of refunds, the committee has also suggested an increase in the interest payable to the taxpayer for delay in refunds from the present 6% per year to 12% and 18% depending on the time period of the delay Stock Market Trading Tips



The committee has suggested that interest should be paid to the taxpayer not only for a delay in payment of refund, but also a delay in processing of the I-T returns that have been filed, which in turn delays the refund process.

Interest payments have been suggested for delays in refunds due under self-assessment tax (which is the tax payable by the taxpayer when the I-T return is filed). At present there is no provision in the I-T Act to grant interest on refund when the same arises out of any self-assessment tax Himanshu Tiwari Astrologer Blog



Coming down strongly, on the practice adopted by tax authorities to adjust refunds due against outstanding demands, where such demands are covered by a judicial decision in favour of the taxpayer, the committee stresses that systems must be put in place to prevent such "erroneous adjustments" Indian stock market astrology prediction



As regards the proposal relating to issue of timely refunds, a CFO of an industrial group said: "As soon as a significant refund is due, generally a scrutiny notice is issued - even on frivolous grounds. By issue of such a notice, which entails endless appearance before the tax department and submission of various documents, the time limit for completing the tax assessment gets unduly prolonged, which also results in delay of the refund."