June 3, 2010 10:44 AM

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FM scraps UTN, announces new method for tax refunds

In a fresh move, the Finance Ministry said income tax payers will have to mention receipt number of tax deducted at source (TDS) forms in the returns to claim refunds, from this fiscal.Finance Ministry said in a statement that the Tax payers will have to mention this number along with his permanent account number (PAN) and Tax-deduction Account Number (TAN) of the deductor, otherwise refunds may not be considered.The announcement by the Finance Ministry came after it scrapped the proposed introduction of a new number Unique Transaction Number (UTN) which was originally scheduled to come into effect from January 1, 2010.At the time of scrapping UTN, the ministry has not ruled out the possibility of introducing a new identity number.The move to introduce UTN had invited concerns from tax payers as it would have brought in a slew of formalities for the tax payers, through their respective collectors and deductors, to avail the new number and file their returns on time.

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