Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
Popular Search: VAT RATES :: ACCOUNTING STANDARDS :: due date for vat payment :: ACCOUNTING STANDARD :: Central Excise rule to resale the machines to a new company :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: empanelment :: ARTICLES ON INPUT TAX CREDIT IN VAT :: TDS :: form 3cd :: VAT Audit :: list of goods taxed at 4% :: cpt :: articles on VAT and GST in India :: TAX RATES - GOODS TAXABLE @ 4%
« General »
 PMC may decide on property tax rebate for IT firms this week
 I-T Dept is giving out certificates of appreciation. Have you received yours?
 Government works on ironing out benefits refund mechanism for exportersa
  Tax officials are using an IDS provision to question transactions beyond six-year-limit
 Tax-free bonds rally like midcap funds
 Senior citizens do not have to pay advance tax on salary and interest income
 GST: Audit commissioners to get adjudication powers
 Interest on NRE rupee account can be exempt from tax under FEMA
 Impact of GST on Real Estate Sector
 GST regime: Tax payers allowed to take option of third-party interfaces
 CAG lens on entities avoiding tax with ‘farm income’ claim

Income-Tax reform begins with refunds: paid to taxpayers, record amount cleared
May, 12th 2011

In a move that has virtually stamped out petty corruption and benefited a swathe of tax payers across the country, the finance ministry has issued refunds of Rs 27,800 crore in the first 40 days in the current financial year a record high.
To just give a sense of this years scale, the amount refunded this year so far is more than thrice the tax refunds of Rs 9,600 crore made in April-May 2010.

And in something unprecedented, most people who filed their income-tax returns for 2010-11 by March 31 have already been issued refunds, wherever due.

This assumes signficance given the widespread complaints of taxpayers being forced to cough up bribes to get their refunds.

Key to this dramatic change: the electronic filing and processing of returns that is fully functional since April 2010.

And, of course, Finance Minister Pranab Mukherjee extracted this promise of the CBDT chief Sudhir Chandra, who in turn, exhorted his officers in a letter, Will you not help me fulfill this promise?

There is a time bar for refunding the excess income charged as tax. The department has to issue refunds within two years. This time, however, it has decided not to hold on to refunds and clear the entire backlog as it gears up for the Direct Tax Code to be implemented from April 1, 2012.

The Central Processing Centre in Bangalore that started functioning to full capacity in April 2010 handles returns filed on paper and those filed online. It has drastically cut short the time taken in processing refunds and helped the department cope with rapid growth in the number of taxpayers. The government will set up two more CPCs one in Pune, Maharashtra and the other in Manesar, Haryana.

In addition to Rs 27,800 crore already credited into taxpayers accounts, the department has dispatched Rs 6,000 crore worth refunds and is in the process of issuing refunds of another Rs 12,000 crore.

By June-end, the department hopes to clear the table on refunds. Those who file returns before the last day July 31, 2011 would most likely get their refunds within the next three or four months.

During 2010-11, the revenue department refunded a total of Rs 74,000 crore and in the previous year, about Rs 57,000 crore. But these include the refund dues of previous years as well.

Given the huge quantum of refunds, the government actually resorted to short-term borrowings. It raised Rs 32,000 crore through cash management bills, an instrument that allows the government to raise funds with short-term maturity. The net tax collection for April 2011-12 is just Rs 17,000 crore compared with the gross tax collections stood at Rs 46,000 crore.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Our Mission

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions