Big Relief to Taxpayers; Income Tax Department Changed Rules of Tax Refund

The Income Tax Department has provided taxpayers with relief in the form of refund adjustments against overdue taxes. In such circumstances, tax officials must now make a decision within 21 days. This ruling will result in less litigation. According to the Directorate of Income Tax (Systems), the 30-day time limit for assessing officers to make a decision has been decreased to 21 days.

According to a statement, if the taxpayer does not agree to the adjustment or partially agrees, the case will be immediately referred by the Centralized Processing Center (CPC) to the Assessing Officer, who will give his opinion to the CPC within 21 days that the adjustment has been made.

In an order to the field formation, the DIT (Systems) stated that in some cases, as a result of information issued under section 245, assessees responded on the demand site that the demands are wrong. The Assessing Officer/ TAT/ High Court has delayed such an incorrect demand.

It has been said that inaccurate classification of such demand as ‘correct and collectible’ or non-provision of answer by assessing officers to assessee responses has resulted in incorrect adjustments of refunds against such demands by CPCs, resulting in complaints and which leads to litigation.