Indian Income Tax Department Releases Details Of Tax Refunds

by Philip Morton, Investors Offshore.com

13 November 2007

The Indian Income Tax Department announced last week that it has issued over 30 lakh (3 million) refunds in the first 7 months of this fiscal year, involving a total amount of Rs.18,448 crore.

Refund payouts in the non-corporate personal income tax (PIT) category are ahead by 47.16% (Rs.6,135 crore against Rs.4,169 crore) as compared to the first 7 months of the last fiscal year, the Department added.

During this year, over 11 lakh electronic returns have already been received. More such returns are expected by 15th November 2007, up to which the last date for filing of mandatory electronic returns stands extended.

During fiscal 2006-07, 3,443,430 electronic returns were filed by various categories of taxpayers.

Out of these, 2,382,040 electronic returns have already been processed by the department and refunds amounting Rs.7,816.89 crore in such cases have already been issued up to 7th November 2007. The remaining 1,061,390 electronic returns will be processed by 30th November 2007.

Refunds of over Rs.14,000 crore pertaining to large corporate cases have also been processed. Out of these, refunds of over Rs.5,400 crore have been issued, and the remaining refunds will also be issued by 30th November 2007.

The Refund Banker Scheme – launched in Delhi and Patna towards the end of the last fiscal year, and extended subsequently to Kolkata, Chennai, Bangalore and Mumbai – has helped increase the pace of refunds.

It will now be extended to the entire country for the non-corporate PIT category of taxpayers, in order to facilitate the quick and correct issue of refunds. Taxpayers are advised to furnish their bank details and ECS number in their tax returns so that their refunds can be credited to their bank account electronically.

With the Refund Banker scheme in place all over the country shortly, the Income Tax department has stated that it envisages no difficulty in processing refund cases. Tax returns have been made annexure-less, to facilitate electronic processing.

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