ASSOCHAM Urges Finance Ministry To Expedite The Tax Return Process

Distressed by the snail-pace functioning of the tax department, industry body ASSOCHAM has requested the finance ministry to ensure that tax returns filed by tax payers are processed expeditiously.

“While the taxes which are due from the taxpayers are recovered expeditiously and at an appropriate time, but at the same time it is equally important that taxes which are due to the taxpayers should be refunded expeditiously,” said DS Rawat secretary general of the chamber.

He has urged that the department must process the returns with a stipulated time period of 10 days. “Despite online filing of return, a period ranging from six months to more than two years are being taken for processing of tax returns with the result that not only the refund due to the taxpayer gets delayed but also the tax demand due on basis of return to the taxpayer also gets delayed,” Rawat.

Comparing the tax department with the stock exchanges, the chamber pointed out that despite countless transaction happening in a day online, various stock exchanges successfully maintain ledger account of securities held, dividend paid, bonus issue as well as process them in T+1 mode (transaction day plus one day).

“This will go a long way in addressing the taxpayers’ grievances and also expediting in filing the return of income. The public perception is that refunds are delayed in order to meet revenue targets set up in the Budget and as such the tax authorities particularly in the month of March build undue pressure on taxpayer to deposit tax and do not release the refunds,” stated Rawat. The chamber has urged the finance ministry to make taxes a taxpayer-friendly and fair regime.