Good News for Taxpayers! Faster ITR Processing as CPC Takes Over Key Functions

The Income Tax Department has provided special relief to individuals liable to file their ITR (Income Tax Return). The Central Processing Centre (CPC) in Bengaluru has been granted new powers by the tax department to speed up the refund process and remove unnecessary delays.

With this big new change, problems like tax credit mismatches, TDS issues, advance tax differences, and refund interest mistakes will now be fixed directly by the CPC. According to experts, this new system will make refund processing almost twice as fast in comparison to earlier. In this easy-to-read, Google-friendly explanation, you will understand how this new technology upgrade will directly benefit you and your money.

Numerous taxpayers still complain that their refunds are stuck and return processing is delayed, even if the system is largely online and automated. After analysing the root cause of these problems, the Central Board of Direct Taxes (CBDT) has given some additional powers to the CPC, Bengaluru.

Earlier, what used to happen was that, in many cases of returns processed from CPC, the tax credit mismatches or rectifications used to require confirmation from the Circle Assessing Officer. This double-level verification created unnecessary details in both processing and refunds.

The system has now been upgraded; most of the tasks will now be managed by CPC itself. This will remove the requirement of a second verification by a separate officer.

The following tasks will not be directly controlled by CPC, Bengaluru:

• Issuing demand notices under Section 156.
• Resolving issues related to tax credit mismatches (such as discrepancies between Form 26AS and ITR).
• Correcting errors related to Advance Tax and TDS.
• Calculating interest payable on refunds under Section 244A.