Income-tax dept streamlines tax refund procedure for faster payment

In a move that will speed up the issuance of tax refunds, the income-tax department will for the first time accept all TDS (tax deducted at source) credit and refund claims not exceeding Rs3 lakh and Rs25,000, respectively, at the stage of processing of the returns.

The Central Board of Direct Taxes (CBDT) has communicated  to all the chief commissioners of income tax in various tax-collecting ranges across the country that the order is applicable for the assessment year 2009-10.

"The I-T department has taken the step to speed up and streamline the process of issuing refunds. The order will be beneficial in view of the income-tax returns filing, which will happen till this month-end," a senior I-T officer said.

In the remaining cases, the claims would be processed after proper verification, the officer added.

"In all the returns filed in ITR-1 and ITR-2 for assessment year 2009-10, where the aggregate TDS claim does not exceed Rs3 lakh and where the refund computed does not exceed Rs25,000, the TDS claim of the taxpayer shall be accepted at the time of processing the return," the order stated.

ITR-1 deals with pensioners' income and others, while ITR-2 deals with income from house property and others.

"In all the returns filed in forms other than ITR-1 and ITR-2 for the assessment year 2009-10, where the aggregate TDS claim does not exceed Rs3 lakh and the refund computed does not exceed Rs25,000, and there is 10% matching of TDS amount claimed, the TDS claim shall be accepted at the time of processing of the return," the order added.