Business Mantra News
- The Central Board of Direct Taxes has been forced to pay Rs. 58500 Crores as interest on Income Tax Refunds for the last 9 years.
- This interest on refunds had to be paid because of delay in processing Income Tax Returns and preparing assessment orders.
- It is also worthy to mention that if an Assessee makes any delay in depositing income tax he/she has also to pay interest on tax amount for the delayed period.
- In return, CBDT has also directed Income Tax Department to pay interest on delayed refunds caused by the department while processing Income Tax Returns.
- The Comptroller and Auditor General of India has criticized the CBDT and the Income Tax Department for this unplanned and unnecessary burden on the budget for expenditure of Rs.58500 Crores in the last 9 years on the payment of Interest for delayed refunds.
- CAG has suggested to the Ministry of Finance to prepare monetary agenda for such delays in processing Income Tax Refunds to avoid burden on budgetary provisions.
- Department needs to be directed suitably to pay interest only on unavoidable cases, where the assessment of an Assessee is delayed due to technical or legal reasons that too with prior approval of the appropriate authority.