Option can be exercised only for self-applications and after a year of non-payment
Tax experts say the Income Tax Act does not mention any recourse to track tax refunds for an individual. Typically, we check if the returns were filed on time, the data provided and if the address is correct. Mostly, these are the problem areas. If all these are correct, taxpayers are advised to fill Form 30 to check on the refunds, within one year from the end of the assessment year.
For the purpose, you need to give copies of the return, advance tax chalan and TDS certificate. You should get a reply in six months. An alternative could be writing to the assessing officer with whom you filed your returns and marking a copy to the additional commissioner.
You should get a reply in a month.
The final step is to approach the Income Tax Ombudsman.
Industry experts say the I-T Department had issued an internal statement last year on streamlining the refund procedure. It said if the TDS credit was less than `3lakh, the refund amounted to less than `25,000 and the appropriate form/information was furnished, an individual should get his/her refund within six months, debited to his/her account. Amounts more than `25,000 are sent through cheque.
Yet, in spite of all the norms and attempts to improve the process, there are hundreds like Shah awaiting their refund year after year. And, there is an interim step before you knock at the Ombudsmans door.
RTI can come to the rescue here. The application should be addressed to the Central Public Information Officer or the assessing officer of the I-T Department. There is a format you should follow for the information you seek (see box) .
Additionally, you should enclose a copy of your tax returns for that assessment year and a copy of Form 16A. An RTI application takes at least a month to get a response.
Importantly, you can only seek information through RTI and not question or ask reasons/opinion from the office, as it is not suppose to provide reasons.
An RTI application will not solve your problem. It will be a potent tool to take your case with higher authorities.
In case you are not satisfied with the response or haven't got one in 30 days, you can appeal to the I-T Commissioner or Chief Commissioner.
You should give a copy of the application filed with the assessing officer, saying you have fulfilled all the rules as per the Act and rules and have not received any reply after 30 days of filing the application or the information received was incomplete/misleading/wrong. You can also mention any other communication with the officer.
Name, designation, official address and contact number of the officer(s) of the Income Tax Department supposed to process the refund claim
Ditto on officer(s) with whom my refund is pending and why
Date since the matter/file is pending with the said officer
Reason for delay in making my refund
Certified copies of instructions from higher or other competent authority which has instructed the assessing or any other officer to delay the refund or excess income tax paid by me in the return under reference
Name, official address and telephone number of the higher officer with whom a first appeal will lie under Section 19(1) of the RTI Act, 2005