Despite filing I-T return on time, tax payers await refund

Millions of individual tax payers have still not received refund despite filing their I-T return before deadline of July 31, 2017. The number of such tax payers in Rajasthan is in thousands.

On the other hand I-T department is imposing penalty on tax payers for filing late returns. This dual practice has angered tax payers many of whom had filed return much before even though it was not mandatory. They had hoped that by filing return early they would get refund on time.

It is learnt that Bengaluru CPC of the I-T department has not even processed refunds of more than 25,000.  The reason attributed for this delay is less than expected income tax collection. Since, I-T collection drops after refund, the department has put undeclared ban on big amount refunds.

The government has increased targets of I-T collection in the current financial year, therefore tax payers would receive their old I-T refunds only in the new financial year.

If departmental sources are to be believed, there is direct link between I-T refund and collection. Refund claims are deducted from final figures of I-T revenue. The officers do not release refund in order to show high revenue figures. However, the tax payers do not suffer because I-T department pays interest on refund amount in case of delay.

Income- tax refunds of more than Rs 1 lakh is also due in cases where tax is decided after scrutiny. Income-Tax consultants say that scrutiny matters were disposed of by December 17 but refunds have not been processed despite the provision of releasing the refund money along with issuing of order. To show good revenue, this too will be released after April 2018.