“HOW TO TACKLE A DELAY IN INCOME TAX REFUNDS”




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Query 1]

I filed my I.T.R. for the A.Y. 2013-14 electronically on 27-06-2013 from Amravti. The treasury officer did not write my PAN No. so my T.D.S. was not credited to my Pan A/c. After reading in the tax talk about the procedure for rectification of mistake by the treasury office, I approached & got the mistake corrected. But yet, I did not get my Refund of Rs. 15,451/-. I have written a letter to Income Tax Dept. CPC, Bengluru but I did not receive any reply. What Should I do?  Whom should I write or complain? Please advice.

[Prof. J.R. Pande (Retired), Murtizapur, Dist. Akola- 444107]

Opinion:

One of the challenges for many tax payers is getting income tax refund timely & conveniently. Delay or non receipt of refund still is one of the biggest grievances of many taxpayers. In such cases, taxpayers often feel helpless & see no recourse but to run from pillar to post at the income tax office to get the refund or ascertain the reason for not getting the refund. Before discussing about the available recourse, few tips about the procedures & mode of working  in the income tax department.

  1. Procedure in case of e-filed return:
    In case of e-filed return, in normal course, following three steps procedure is adopted by CPC, Bengluru:
    i. It acknowledges the receipt of the ITR-V through an SMS or e-mail.
    ii. The taxpayer is notified once the return is processed
    iii. Intimate about the refund process initiation.
    Taxpayers are advised to careful note the above communication received at each & every stage of processing and may comply if any discrepancy is noticed.
  2. Reason for non issue of Refund:
    There could be multiple reasons or default on the part of the assessee also, thereby resulting in non issue of refund. The most common reasons for delays are
    a] error in furnishing the bank details
    b] change in the communication address
    c] non submission of ITR-V (verification form) to CPC Bengluru in the case of e-filed income return without digital signature.
    d] Mistamatch in TDS credit claimed vis a vis 26AS etc
  3. The recourse:
    Whether income tax return is e-filed     or physically filed, tax payer needs to ascertain the reason for non issue of refund.
    In case of e-filed return, tax payer can check the refund status on the I-T portal at www.incometaxindiaefiling.gov.in. If it has been rejected, the reason for the same is also available therein. If the tax refund is stuck either because of an incorrect account number or the incorrect address mentioned in the tax return, the user friendly procedure given therein could be followed for issue of refunds.
    In case of return submitted physically, tax payer should visit the tax office to enquire the status of refund processing. In such case, the taxpayer may also file a letter with respective assessing officer with reasonable explanation, supported by documentation. However, if no action is taken by the assessing officer, the taxpayer can move up the hierarchy and write to the jurisdictional joint commissioner of commissioner with copies of previous letter/s written to the assessing officer and with a copy of the tax return filed.

 

Query 2]

I have some queries. I purchased a plot in FY 2000-01 and sold it in Fy2013-14.

  1. What are the indices for the above years for calculating capital gains tax?
  2. Which ITR form I will have to fill for filing IT return?
  3. The income tax rebates of Rs. 2000/- is available under which section?
  4. Is this rebate available to everybody or is there any limitation to it?

 I will be thankful to you if you clarify the above points. [SSB- Trishnajit Kaur Bhogal- trishgur@gmail.com]

Opinion:

  1. Cost Inflation Index (CII) for the relevant FY 2000-01 & 2013-14 are “406” & “939” respectively. Other readers may note that CII for the FY 2014-15 has also been notified & it is “1024”.
  2. You can refer last issue of Tax Talk Dated 23.06.2014 covering everything about the ITR forms to be used for filing IT returns.
  3. A tax rebate under section 87A is provided to an individual resident tax payer whose total income doesn’t exceed Rs. 5 Lacs. The rebate shall be equal to the amount of income tax payable on the total income or Rs. 2,000/- whichever is lower.

 

Query 3]

Please clarify the below query:
I am a NRI & staying in Bahrain. I have a NRO account in SBI & my fixed deposit transactions shows cess & tax deduction amount. Whether I am qualify to fill 15G form to avoid above mentioned deductions? [Anand Kale-anand_hinga@hotmail.com]

Opinion:

A person who is resident in India can only submit form No. 15G. Non Resident Indian under the Income Tax Act-1961 cannot submit form No. 15G.

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