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Refunds to be Processed in 4-6 Months Now: Chairman, CBDT

New Delhi, March 03, 2008

R Prasad said that the Finance Ministry would be evolving a centralized system to process
refunds within a period of 4-6 months which is why the Finance ministry gave soaps to tax payers in the budget for 2008-09. Inaugurating the ASSOCHAM Seminar on `Post Budget’ here today Prasad said that from next 4-6 months, the tax payers would not get notices from a particular assesse or income tax official but would be served notices under a seal of an income tax department for evasion of taxes or seeking any clarification.

With the new system in place, the tax payers would not be required to appear before a particular tax official with written reply but these would be required to summit their return explanation without being physically present there so that tax refund are processed without any delay, indicated Prasad.

According to him tax compliance in the last two years both on direct and indirect front have gone up by 40%-43% as against 22%-25% in last 4 years and the government is therefore tempted to evolve a centralized system in 8- 9 centres for processing quick refunds.

The speaking on the occasion the economic advisor to the finance minister Dr. Shubhashis Gangopadhyay, clarified that the finance ministry would generate resources for scheduled commercial banks so that loan wavier scheme as announced by the finance minister for marginal farmers are
executed well by them. He said that scheme was full of merit since banks could not have done anything against those that refused repayment of agricultural loans to the extent of Rs. 60,000 crore.

The advisor admitted that government in future would enhance its GDP and education ratio much beyond 6% to ensure literacy at primary and higher education levels. Among other who spoke on the occasion, stressing that tax payers should take advantages of new system for refund process provided tax
payer don’t evade taxes include J.M.K. Sekhar, Member (Budget) CBDT and Arbind Modi, Joint Secretary (TPL), CBDT.

ASSOCHAM Direct & Indirect Tax Committee Chairman Nihal Kothari and J K Mittal and its Secretary General, D S Rawat described the budget as the most futuristic and progressive.

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