Income Tax payers alert! Soon, you will file return today, and will get refund tomorrow - What Modi govt has planned
The Modi government on Wednesday gave nod to a next-generation income tax filing system which will cut down the processing time for returns to one day from 63 days and expedite refunds.
ITR returns filing, refund: The Modi government on Wednesday gave nod to a next-generation income tax filing system which will cut down the processing time for returns to one day from 63 days and expedite refunds. This new system will be developed by IT major Infosys for a cost of Rs 4,241.97 crore. The announcement was made by Union minister Piyush Goyal, who said that the Cabinet chaired by PM Modi gave its "approval to expenditure sanction of Rs 4,241.97 crore for Integrated E-filing and Centralised Processing Centre 2.0 Project of the Income Tax Department". Here is what makes this new system special -
The project will be completed in 18 months and will be launched after three months of testing.
As per the existing system, the processing time at present for Income Tax Return (ITR) is 63 days. But, the new project will bring it down to one day or 24 hours.
The e-filing and Centralised Processing Centre (CPC) projects have enabled end-to-end automation of all processes within the Income Tax Department. They use many innovative methods to promote voluntary compliance.
Besides faster returns, the project is also expected to ensure transparency and accountability.
The money would also be transferred to the taxpayers' bank account directly without any interface with the Income Tax Department.
The move also hints at major tax reform in the upcoming Union Budget. Taranpreet Singh, TASS Advisors, Partner told Zee Business Online that the common can expect relief from the budget. "One of the key expectations of the salaried class is an enhancement of income tax exemption limit from existing Rs. 250,000/- to Rs. 500,000/- and increase of deduction limit under section 80C from the current limit of Rs. 150,000/- to Rs. 250,000," he said.