For GenNeft, I-T refund would be just matter of a day
April, 14th 2008
Taxpayers income-tax refund woes could soon be over. With a view to make tax refunds faster and efficient, the Central Board of Direct Taxes is proposing to move to National Electronic Funds Transfer (Neft) system.
This would allow taxpayers to get their refunds straight into their bank accounts within a day of processing. The board was looking at both Neft and Real-Time Gross Settlement (RTGS), and has opted for the former. The scheme will be launched on a pilot basis this month, sources said. Initially, however, the facility would be available only in cities that earlier offered the refund banker scheme.
This is a step forward from the refund banker scheme where assessees could get their refund cheques. Like the refund banker scheme, the facility also would be available only for individual taxpayers. The refund banker scheme is in operation in Chennai, Kolkata, Mumbai, Bangalore, Delhi and Patna. After the pilot phase, it would be expanded to cover other cities.
Neft is a nationwide system to facilitate transfer of funds from any bank branch to any other bank branch. Heres how it will work: income-tax department would process an individuals tax return. If there is a case of a refund, it would forward the assessees name to the bank in e-mode with the details, such as the assessees bank account.
It will also authorise the bank to remit the specified amount to the assessee. At present, State Bank of India is acting as the refund banker for the department and the facility may also be launched through the bank.
Since the department is gearing up for zone-free returns processing, the new system would ensure delivery of tax refunds expeditiously and correctly.