The refund banker makes it easier and faster to get the IT refunds due to you
Securing a refund of income tax was a long-drawn process. The completion of assessment takes considerable time. And in case there is any amount of refund due to the assessee, it used to take even longer. In order to reduce the time taken to issue refund orders, the government has initiated the scheme of refund banker. The bank will pay the assessees directly, based on an advice from the Income Tax Department. So the assessee will not have to follow up with the IT Department to check the status of his refund.
According to the Income Tax Act, if any person convinces the assessing officer that the amount of tax paid by him for any assessment year exceeds the amount he should have paid, he will be entitled to a refund of the excess amount. The assessee needs to file an income tax return before the due date of filing returns.
The scheme for sending IT refunds through a bank was inaugurated by the Finance Minister last year. In this scheme, the income tax refunds due to taxpayers will be sent by the State Bank of India directly from their CMP Branch in Mumbai.
The scheme of refund banker is based on the concept of refund bankers for IPOs. In this scheme the assessing officer will process the income tax returns on his computer. If a refund is due to the taxpayer, the data will be picked up automatically and transmitted to the bank. The bank will then send the refund as indicated by the assessing officer either through ECS or by a banker's cheque to the taxpayers address as indicated in the returns of income. An advice will also be sent to all tax-payers regarding the funds deposited in their account by ECS. The bank will despatch refund cheques within three working days of receipt of data.
Where through death, incapacity, insolvency, liquidation or other cause, a person is unable to claim any refund due to him, his legal representative, trustee, guardian or receiver, will be entitled to receive the refund for the benefit of the person or his estate.
Every claim for refund should be made in the prescribed form and verified in the prescribed manner. The claim should be made within one year from the last day of the assessment year. Where, as a result of any order passed in appeal or other proceedings, refund of any amount becomes due to the assessee, the assessing officer will refund the amount to the assessee without his having to make any claim.
With the simplifying of process and expediting refunds, compliance with the tax laws and timely payment of tax liabilities to the IT Department is expected to increase.
Securing a refund of income tax was a long-drawn process. The completion of assessment takes considerable time. And in case there is any amount of refund due to the assessee, it used to take even longer. In order to reduce the time taken to issue refund orders, the government has initiated the scheme of refund banker. The bank will pay the assessees directly, based on an advice from the Income Tax Department. So the assessee will not have to follow up with the IT Department to check the status of his refund.
According to the Income Tax Act, if any person convinces the assessing officer that the amount of tax paid by him for any assessment year exceeds the amount he should have paid, he will be entitled to a refund of the excess amount. The assessee needs to file an income tax return before the due date of filing returns.
The scheme for sending IT refunds through a bank was inaugurated by the Finance Minister last year. In this scheme, the income tax refunds due to taxpayers will be sent by the State Bank of India directly from their CMP Branch in Mumbai.
The scheme of refund banker is based on the concept of refund bankers for IPOs. In this scheme the assessing officer will process the income tax returns on his computer. If a refund is due to the taxpayer, the data will be picked up automatically and transmitted to the bank. The bank will then send the refund as indicated by the assessing officer either through ECS or by a banker's cheque to the taxpayers address as indicated in the returns of income. An advice will also be sent to all tax-payers regarding the funds deposited in their account by ECS. The bank will despatch refund cheques within three working days of receipt of data.
Where through death, incapacity, insolvency, liquidation or other cause, a person is unable to claim any refund due to him, his legal representative, trustee, guardian or receiver, will be entitled to receive the refund for the benefit of the person or his estate.
Every claim for refund should be made in the prescribed form and verified in the prescribed manner. The claim should be made within one year from the last day of the assessment year. Where, as a result of any order passed in appeal or other proceedings, refund of any amount becomes due to the assessee, the assessing officer will refund the amount to the assessee without his having to make any claim.
With the simplifying of process and expediting refunds, compliance with the tax laws and timely payment of tax liabilities to the IT Department is expected to increase.
