Income Tax Refund : Interest on Income Tax refund amount due to delay
The below information was said in a written reply to a question
about interest paid on income tax refund amount due to delay in Lok
Sabha by the Minister of State for Finance Shri.S.S.Palanimanickam on
1st March, 2013 as follows:
The Income Tax Act 1961, stipulates that refund to a taxpayer shall include interest on excess collection of taxes, as under:
- In case of processing of the return of income: From 1st April of the Assessment Year to the date of processing of return, and
- In case of giving effect to appellate orders etc: From the date/s of payment of excess tax to the date of giving effect to the appellate order.
It is hence submitted that payment of interest on refund is not on
account of delay in issuance of refunds but is a statutory obligation
arising on account of provisions inbuilt in the law itself.
The amount of funds spent on payment of interest on excess tax in past three years is tabulated as under:
| Financial Year | Interest paid on refund (in Rs. Crores) |
| 2009-10 | 6876 |
| 2010-11 | 10499 |
| 2011-12 | 6486 |
| 2012-13 | Not Available |
The outgo towards interest on refunds is treated as “reduction from
gross tax collections” and is an integral part of “Deduct Refund”.
Following steps have been taken to ensure timely refunds:-
- Promoting e-filing of the returns for speedy processing.
- Centralized Processing Centre (CPC) at Bengaluru has been set up to process e-returns of the entire country.
- To expedite faster issue, dispatch and delivery of refunds, issuance of refunds through Refund Banker.
- Through Citizens’ Charter and other press releases issued by the Department, tax payers are requested to carefully mention the relevant particulars in return of income.
- TDS detectors are required to compulsorily e-file their TDS returns on quarterly basis.
- Quoting of PAN by detectors in their return has been made mandatory. For improved compliance, failure to provide PAN number to detector now results in higher rate of TDS.
- Online viewing of the Tax Credit Statement in Form 26AS is made available to tax payers so that they can verify the TDS details before filing the return of income and take proper steps with the detector(s) to rectify mistakes, if any.
2 comments:
Many people filed through e-filing within due date but not got refund though Honorable Minister of State for Finance Respected Shri.S.S.Palanimanickam assured in Lok Sabha refund will made within 3 to 4 months if file within due date . I earnestly appeal to Most Respected Director of E-Filing CPC ,Bangalaru to look into this matter as some Tax payers are thinking more delay will happen . Some people are telling Government will not release payment before April due to shortage of fund .I hope this is wrong and Honorable Minister of Finance Most Respected P.C .Chidamboram and Minister of State for Finance Shri.S.S.Palanimanickam and Most Respected officers of Income Tax Department will look into this matter for middle class and poor Tax-Payers .
With Best and High regards
Prof. Sanjib Bhattacharya
I earnestly appeal to Honorable Finance Minister Most Respected Mr P.C Chidamboram ,Honorable Minister of State for Finance Respected Shri.S.S.Palanimanickam and Most Respected Director and Respected and Honorable officers of E-Filing CPC ,Bangalaru to look into this matter as some Tax payers are thinking more delay will happen and it is too late for many taxpayers and they have been suffering for this delay .
I am sure the most efficient and most respected officers of Our Income Tax Department will do the needful for the interest of poor and middle class honest taxpayers of the country .
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