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) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Latest Expert Exchange
« News Headlines »
 5 things you should not forget while filing income tax return
 10 Easy Steps to File ITR 1 Online
 How to e-verify income tax return?
 What to do when you receive a notice from the tax department
 How to use your Form 16
 Which ITR form applies to you for financial year 2017-18?
 Income tax returns filing form-2 released; should you use it? Find out
  Are you planning to file ITR 1 form? here's how to do it Income Tax Return (ITR) filing
 30 LPA-Opening Financial Controller
 ITR form 2 in java release by CBDT for return filing by individuals
 How to file your income tax return using ITR Form-1 Income Tax efiling for AY 2018-19

System mismatch stalls refunds
July, 31st 2007

The income-tax departments step towards automation has made life a little difficult for taxpayers, especially companies. Its recent move to shift to a system of e-filing of returns has blocked tax refunds, sources said. Due to a mismatch between the TDS (tax deducted at source) software and the regular tax refund system, the department is not in a position to process refund orders, they said.

Companies file TDS returns through the National Securities Depository (NSDL) network which is not compatible with the I-T departments refund system. When asked about the problem, chief income-tax commissioner NB Singh said: There is a problem with the refunds. We are trying to rectify it.

Company sources said due to the mismatch, crores of rupees are stuck in the system. The tax department has taken a stance that unless NSDL updates the data, it cannot process the TDS repayment requests. NSDL, the largest depository in India, handles most of the stock market transactions in the dematerialised form.

According to the sources, the problem that surfaced in April has stalled refunds due to several taxpayers. The income-tax department pays a 6% interest on the refund amount for any delay in repayment.

At the same time, the interest for delayed payments is 12%. Since the interest offered on refunds is less than the market rate, the delay has adversely affected the liquidity of companies. Close to Rs 1-crore refund of one of my clients is blocked by the department for no fault of his, said Nilesh Kapadia, a chartered accountant.

The government made it mandatory for companies to file their TDS returns electronically from 2006-07. Senior chartered accountant TP Ostwal said: The department should have given a one-year grace period before shifting to e-filing of returns.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - We Bring IT. Offshore software outsourcing company. We use Global Delivery Model (GDM) and believe in Follow The Sun principle

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