Income Tax Refunds/
PAN :
A
common taxpayer has to face a lot of problems in getting his refund
or Permanent Account Number from the Income Tax Department. More often than not, he ends up
paying a bribe to get his refund. Parivartan has been
collecting taxpayer grievances in Delhi on account of non-receipt of
refunds. All such grievances
are regularly handed over to the Chief Commissioner of Income Tax,
Delhi for their redressal.
The
grievances received till now have been studied and analysed by Parivartan.
The analysis of these grievances and interaction with a large number
of taxpayers helped Parivartan in
identifying the problems faced by taxpayers.
Parivartan suggested
some measures, which if implemented,
could remove corruption in this area. The measures
suggested are simple, do not require any legal amendments or any
additional expenditure and can be implemented through administrative
orders.
Parivartan
presented this analysis
of the problems and the measures
alongwith the grievances to the Chief Commissioner of Income Tax and
requested him not only to resolve the grievances but also to
implement the measures suggested by Parivartan.
Parivartan
is now striving to have the grievances resolved and to have these
measures implemented so that such grievances do not recur in future.
Already, a
large number of grievances have been resolved by the Department. Parivartan
filed a Public Interest Litigation in Delhi High Court in the last
week of July, 2000. Hon'ble Court directed the Department to
consider and implement these suggestions. However, the Income Tax
Department did not take any action on Court's directions. Parivartan
waited for three months for the Department to implement these
suggestions. When the Department did not take any steps, Parivartan
again filed a petition in Delhi High Court in Dec, 2000 which is pending.
We
are still receiving the grievances of the public on this account. If
you are also not getting your refund or PAN and the IT staff
expects/demands a bribe from you, please do not pay a bribe. Tell
us. We will try and help you in getting your refund/PAN. But please,
please do not pay bribes. Parivartan is doing it as a social service
and does not charge anything for its services. However, at the
moment, Parivartan is operative in Delhi only. Hence,
send
us your grievance only if you filed your return in Delhi.
Parivartan
is doing it as a social work. It is not charging anything for its
services.
Go to top
I
have an Income Tax refund problem :
(This exercise is meant for taxpayers assessed in Delhi
only)
If
you have not received your Income Tax refund for any year upto A.Y.
1999-00 and if you have not received any intimation from the
Department that your refund has been withheld
u/s 241 of Income Tax Act, write to us with the following
details :
1.
For refund u/s 143(1)(a) :
-
A copy of acknowledgment of return filed.
Please ensure that return receipt number, ward/circle and
date of filing are legible, in the copy being sent to us, from the
stamps of receipt of the Department.
If they are not legible, please write these details in hand
on the copy.
-
Copies of all
representations made to the Department so far, if any.
2.
For refund due to rectification u/s 154 :
-
Copy of order to be rectified.
-
Copy of application
to the Department u/s 154.
-
Copies of all
representations made to the Department so far, if any.
3.
For refund due to appeal effect including
revision u/s 264: (Please
approach us only if appeal order is dated before 31.12.00)
-
Copy of original order of the Assessing Officer.
-
Copy of order of
appellate authority that is to be given effect to.
-
Copies of all
representations made to the Department so far, if any.
4. For PAN:
-
Copy
of the PAN application filed with the department earlier.
-
A
fresh application will also be required as the Department has no
mechanism to trace out your application on the basis of your
acknowledgement. According to some newspaper reports, the
Department has lost a large number of PAN applications.
Checklist
:
-
Please submit all the papers in duplicate.
-
Your details should be accompanied with a covering letter addressed to the Chief Commissioner of Income Tax, New Delhi.
-
Please mention your name, address, tel nos. and e-mail
address.
-
Please
send your grievance at our address
at
Parivartan, 5B, Navkala Apts, 14, I P Extension, Patparganj,
Delhi-92 either by post or
in person. Do not send it through e-mail because the Income
Tax Department refuses to accept grievances received through
internet, which do not bear the signatures of the taxpayer..
Please do not pay
bribes to anyone in Income Tax Department or to middleman to get you
Income Tax refund or PAN. If you are unable to get it in normal course,
please let us know. We assure you that we will get you your due
rights without payment of bribes, though it could take some time.
Go to Top
CITIZEN'S
CHARTER :
The Income Tax Department, besides
other things, promises to
- Redress all complaints and
grievances within 30 days.
- Issue Income Tax Clearance
Certificate u/s 230 of Income Tax Act within 7 working days and
that u/s 230A of Income Tax Act within 30 days.
- Dispose of all rectification
applications u/s 154 of Income Tax Act within 30 days.
- Give effect to appellate orders
within 30 days of the receipt of such orders.
- Issue refunds within 30 days of
determination.
Go to Top
Analysis
of the problems:
An
analysis of the various grievances received at Parivartan
and interaction with taxpayers shows that the types of problems
faced by a common taxpayer, with respect to obtaining refunds from
the Department, can be classified under the following categories:
1.
The returns are not processed in chronological order. There
is no method, which is followed to process returns. Any return can
be processed at any time. This gives a lot of leeway to the
concerned officials. They would process only such returns in which
their demands for bribes have been met or in the cases, which are
referred to them by their colleagues, friends or seniors.
2.
After filing the return, there is no mechanism by which a taxpayer
could know the status of his return. There are no channels available
to find out whether a taxpayer’s return has been processed and
refund sent or how much more time would it take before he gets his
refund. Naturally, he is forced to make visits to the Department,
thus, wasting his time, money and energy. Either he visits the
Department and gets his work done by paying a bribe or he simply
forgets about his refund. If he pays the money, he gets his refund
else, the harried taxpayer keeps making visits to the Department.
3.
Sometimes, the taxpayer receives intimation u/s 143(1)(a) which says
that a refund is due to him but the refund cheques never reach the
assessee. The taxpayer, now, has to get in touch with the concerned
officials, pay a bribe and only then does he get his cheque.
4.
Often, the refund cheque is received after the expiry of the
validity period of three months. Again, the assessee applies for
revalidation of the same and the same is not done without payment of
bribe.
5.
Sometimes, if the refund cheque is deposited in the bank, it is
returned by the bank for want of ‘advice’ from the Department.
Again, the advice is sent by the concerned officials only on
fulfillment of their demands.
6.
Similarly, the PAN is allotted within no time if the desired amount
is paid to the staff. Else, there are cases where PAN has not been
allotted even after two years of their application. Even if the PAN
has been received by a taxpayer, the card never comes.
7.
Citizen’s
Charter : The
Department has a Citizens’ Charter which lays down time limits for
different types of jobs. However, in practice, these time limits are
seldom followed.
a)
The Department promises to redress all complaints and
grievances within 30 days. Parivartan received cases
where grievances have not even been acknowledged, leave alone
redressed for years together. The poor taxpayer does not know
where to go and what to do now. The only option left with him is to
pay the bribe and get his grievance redressed.
b)
The Department promises to dispose rectification applications
within 30 days. Again, such applications have not even been
acknowledged, leave alone disposed after years of pursuing. The
rectifications are done only on the payment of bribes.
c) The Department promises to give effect to any
appeal order within 30 days. However, effects have not been given
years after the orders were passed by the appellate authorities
despite several visits and letters by the taxpayers. The appeal
effects are given only on payment of bribes.
Go to Top
Solutions:
The
following are some measures. Implementation of these measures will
not only prevent the recurrence of these problems in future but also
stop corruption in these areas for all times to come:
1.
The
returns should be processed in strict chronological order on
first-cum-first-served basis according to the return receipt
numbers. No
return should be allowed to be processed on out-of-turn basis. It is
the Fundamental Right of a citizen to be treated equal before law.
Processing anyone’s return out-of-turn violates this Fundamental
Right of those taxpayers who filed their returns before him. Under
no circumstances, whatsoever, any officer/ official should have the
discretion to allow out-of-turn processing. An out-of-turn
processing is done by an officer only due to one of the following
reasons:
-
When
the concerned officer has taken a bribe, or
-
When
a colleague, friend, relative or senior has referred that case
to him.
In both these cases, it amounts to
misuse of official position. Hence, if there is any case of
out-of-turn processing, it should be treated as a confirmed case of
vigilance and disciplinary action should be taken against concerned
officer without any enquiry.
2.
The return receipt number upto which refunds have been issued in
each ward/ Circle/Special Range by the end of each month should be
displayed on the website of the Department and also on the notice
Boards of the Department.
Through this, a taxpayer will come to know where he stands and he
will not have to contact the concerned staff for this. If someone
does not receive a refund, though according to the website, he
should have received it, this matter should be investigated at the
level of Commissioner of Income Tax and disciplinary action taken
against the concerned officials within a month. The taxpayer should
be issued refund within a week of such representation.
3.
The Finance Minister has announced implementation of electronic
clearing of refunds in this budget. However, we feel that the final
implementation of this would require an elaborate infrastructure and
could take time. Pending that, the refunds should be credited
directly to the bank account of the taxpayer through RBI. A
similar system exists in Chennai, which has been appreciated by
everyone. It should also be implemented in Delhi. This would do away
with the problems of loss of refunds in postage, validity period,
advice not sent etc.
4.
Citizens’
Charter :
The time limits mentioned in the Citizen’s Charter are
quite liberal, for instance,
·
It hardly takes two hours to give appeal effect (other than
set aside cases) but the Citizens’ Charter gives 30 days time for
the same.
·
It hardly takes one hour to rectify an order u/s 154 but the
Charter gives 30 days time for the same.
·
It hardly takes
half an hour to issue an ITCC u/s 230 and 230A but the Charter gives
7 days and 30 days time respectively for the same.
Despite such liberal time limits set
in the Citizens’ Charter, in practice, they are seldom followed.
This creates a situation wherein the staff is not accountable on any
of these accounts. They do not do the work unless their palms are
greased. We want that these time limits should be strictly
enforced. If any officer does not adhere to any of these time
limits, it should be treated as an automatic dereliction of duty and
action should be taken against such officer accordingly. (Except in
the case of set aside and partly set aside cases where it takes some
months to give appeal effect)
5.
The
Finance Minister has announced that PAN card would be issued within
30 days of application. We understand that the Department has some
infrastructural problems in issuing PAN cards. But it takes a few
minutes to allot a PAN to any taxpayer. We want that this time
limit should be strictly enforced for allotment of PAN (not issue of
cards) and any violation of the same should again be treated as an
automatic dereliction of duty.
Go to Top |