May 7, 2010 8:20 PM

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CAG pulls up IT Dept for delay in processing of refunds to assesses

The Comptroller and Auditor General of India has pulled up the Income Tax Department for the delay in processing of refunds to the assesses and the insensitive attitude towards the senior citizens. In a report tabled in the Parliament today the CAG findings on Income Tax Refunds reveal that refund claims take 4-6 months to be settled although internationally it takes only 24 days to six weeks. And the average time taken for the receipt of refund claims by senior citizen is 12 months. The report found the volume of tax refunds as a percentage of gross tax collection is on a decline but the delay in processing have increased. Also pendency rate of refund claims is on the rise despite a decade of computerization of Income Tax Department. The report recommends senior citizens claims be processed on priority basis and making the process more transparent. CAG also directed the Income Tax office to identify the gaps in automation which impede the clearance of pending refund claims. All the recommendations of CAG have been accepted by the Finance Ministry.

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