If Income Tax Refund received short or less, as you claim then what will you do ?

In the interest of public information, you know very well that in many refund cases received refund amount is short or less due to many reasons during submission of Income Tax Return or by the Income Tax Department i.e. date of Income Tax does not match with the date of Income tax available in Form 26AS. In such cases taxpayee/assessee furnished Form No. 16 or 16A but on contrary their deductor has not submitted eTds Return correcty due to so many reasons/problems i.e. 1. Misprint of PAN No., 2. Assessee name not correct, 3. TDS Deductor TIN No. is not correct and 4. Wrong indicate Date, Challan No., BSR Code while depositing the Challan or any other reasons. etc.

I would like like to share the following press release inconvenience with this.

A press release was released on 10th February 2011 vide NO. 402/92/2009-MC (03 of 2011) by Government of Income /Ministry of Finance, regarding issuance of refund without matching data available in 26AS under limit of Rs. 1 lakh, simply verification is required from dedcutor/collector to avoid refund frauds.

Sufferer/Assessee can claim balance amount of Income Tax/Refund from Income Tax Department. Complete Press Release can be read/downloaded as under :-

No.402/92/2006-MC (03 of 2011)
Government of India / Ministry of Finance
Department of Revenue
Central Board of Direct Taxes

New Delhi dated the 10th February 2011
PRESS RELEASE

India has entered into its third Tax Information Exchange Agreement (TIEA) with the British Virgin Islands. The Agreement was signed on 9th February 2011 by the High Commissioner of India to United Kingdom on behalf of India and the Deputy Premier on behalf of British Virgin Islands. The agreement provides for sharing information, including exchange of banking and ownership information, and also of past information in criminal tax matters. Earlier, India had signed similar TIEAs with Isle of Man and Bermuda.

In order to further reduce litigation, the Central Board of Direct Taxes (CBDT) has enhanced the limits for filing appeals against taxpayers in the Income Tax Appellate Tribunal, High Court and Supreme Court, from tax effect of Rs.2 lakh, Rs.4 lakh and Rs.10 lakh, respectively, to Rs.3 lakh, Rs.10 lakh and Rs.25 lakh, respectively.

In order to speed up refunds, TDS claims in all tax returns (ITR-1 to ITR-6) will be accepted without verification if the difference between the amount claimed in the return and the amount reflected in the TDS return (AS-26 statement) does not exceed one lakh rupees. This will enable the Income Tax department clear nearly 95 percent refunds without verifying each TDS claim. Cases with zero-matching, invalid TAN and difference exceeding Rs. 1 lakh will, however, be cleared only after due verification. This precaution is necessary to avoid refund frauds.

Earlier, the Chairman CBDT had directed all Chief Commissioners to upload necessary data so that the refunds can be issued expeditiously. It will be for the first time that most income tax refunds of the current assessment year will be dispatched to the taxpayers within the current financial year itself.

Posted in: Income Tax Press Release,Income Tax Refund,Income Tax Refund Status