FICCI Infra committee writes to FM for online IT Refund

FICCI's National Committee on Transport infrastructure has urged the Union Finance Minister Arun Jaitley to remove delays in refund of High value Income tax (IT) dues by making the process online and tax payer friendly.

"The Union Finance Ministry has made filing of Income Tax customer friendly through online mechanism. However, the same is not true for refunds. To make the process of refund tax payer friendly FICCI suggests, issuance of an online passbook system linked with the PAN No., where the refunds are credited as dues for each financial year" said MR K K Kapila, Co-chairman, Ficci's National Committee on Transport Infrastructure and Chairman International Road Federation (IRF) in a letter to the Union Finance Minister.

""The same could be used by the tax payer for payment of advance tax for the subsequent year. Such a passbook would lend credit worthiness to the tax payer and the Banks will also willingly lend, if the tax payer wishes to borrow to meet his/her tax liabilities." Said Mr K.K.Kapila.

"Further, refund of Income Tax is a part of the working capital for any business entity, particularly consultants, whose main assets are in the nature of recoverables from clients. Linking the issue of refund to the finalisation of scrutiny assessments leads to avoidable and prolonged delays which adversely affect the working capital funding of the Assessee, particularly, the consultants. This in turn has an adverse effect on the business since banks do not freely sanction working capital advance to the Consultants. It is, therefore, requested to delink the issue of refund from finalisation of the assessment. In case of any demand resulting as a consequence of scrutiny assessment, the Department has all the means at its disposal to recover the dues." Mr Kapila said.

Source : Equity Bulls

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