How to complain if IT refund is delayed

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    Home Income Tax Steps to take when your Income Tax Refund stuck with department

    Steps to take when your Income Tax Refundstuck with department

    Thursday, March 29, 2012, 8:34Income TaxArticles

    Unfortunately in our country, many honest tax-payers have pending income tax refunds.Whether its the Income Tax (I-T) departments lethargy or the growing number of tax payers,delayed refunds remain high on the list of complaints against the department. One of thechallenges for any tax payer is getting a refund, because it is a lengthy and time-consuming

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  • process.Ideally, once you file your returns, the I-T departmenthas to verify the information and any excess tax paidis supposed to be automatically processed andrefunded. A cheque is supposed to be sent to theassessees address in four months. The amount canalso be credited to his bank account (throughelectronic clearing system or ECS), if he has chosen theoption.However, the ECS option, which was introduced underthe Refund Banker Scheme in 2007 to implement speedyredressals of refund issues, does not cover the salaried

    tax-payer in Mumbai ,though it covers 14 other cities.The problem arises when the four-month period as prescribed by the Central Board of DirectTaxes stretches to, well, years. In fact, even the interest penalty (calculated at six per centfrom April 1 onwards) for any delay has not helped matters.I-T officials plead not guilty. The technical problems relating to our systems actually cause thedelays. At times, wrong computation of tax or even an incorrect address can lead to delays,said an official.Since high technology fails to live up to the promise of speedy refunds, you must resort to thegood, old letter-writing art, and hope the postal route (a registered post) can make up for thetechnical snag.But before you pick up the pen, you can go to the tax department, or NSDL-TIN (NationalSecurities Depository Limited-Tax Information Network) websites. Alternatively, you could usethe help desk of State Bank of India.Here are a few things to do:

    Any defective filing from your/I-Ts side has to be solved by a rectification letter. If theissue is cleared, you will get your pending refund.If there are no defects, you need to write a letter, along with copies of returns, to yourAssessing Officer (AO), informing him.No response in 10 days? Write another one. This time, to the Additional Commissioner ofIncome Tax (A-CIT). Attach a copy of the earlier letter to the AO.Write another letter to the Grievance Department, with copies of letters to both AO andA-CIT.Sometimes, a visit to the officers concerned may help sort matters earlier.

    Cases are normally sorted within a month. If not, approach the nearest I-T Ombudsmansoffice. The Ombudsman will write a letter directly to the I-T Commissioner, seeking details ofyour case.This measure works most of the time, with results within a month or three at the most. TheOmbudsman has had a record of solving about 75-80 per cent of issues till date, says an officerfrom there in Mumbai.

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    7 Comments on Steps to take when your Income TaxRefund stuck with department

    Tira.T wrote on 23 July, 2010, 11:01The plea of the IT officers on this issue is totally bogus. Even today, refunds are to bemeant to be collected in person after eithe the Admn. Officer/OS in the office ofCCIT/CIT/Addl. or Jt. CIT/ACIT/AO, or the AO himself makes a call to the tax payer-depending upon the level of officer to whom the tax payer has made his request fot issueof the long pending refund. And the standard minimum rate of exchange (SMRE) is25%, in terms of the present level of inflation. NOT one CCIT/CIT has the courage to touchthe erring officer/official, not even the CBDT or its master-the Revenue Deptt. theadministration sections of which are regularly abd extremely well oiled on daily basis bythe all-powerful CPI-M led IT unions. Without parting with the mandatory SMRE, thereis NO possibility of getting delayed refunds (always deliberately witheld) along withinterest which, in any case, is given only to the very powerful and influential peoplealone. The oldest age of a pending refund can never be less than 30 years! Let theCBI/CAG prove tis wrong-if the records are still maintained/available.Surendera M Bhanot wrote on 23 July, 2010, 19:00Even after the letters, if no action is taken, then another quick remedy is to file a RTIApplication with the PIO of the ITO from where your refund is to be processed and ask forthe following information:

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  • Please file RTI Application with the PIO of the concerned Public Authority [COLOR="Red"][B]via Speed Post[/B][/COLOR]. While filing RTI Application detailing the problem beingfaced by you and quoted therein your all previous references of letter/telephone/personalvisits to the office of the Public Authority and ask for the following information (Pleaseuse all or some points as suited to you. Point No. 6-9 below is essential for quick andpositive action):01. Inform me the day to day action taken on my various requests made earlier (give datewise detail of your letters/visits/phone calls).02. Inform me the time needed as per law to finalize the required action.03. Inform me latest status of your request.04. A. Provide me the certified copies of thea. File Notings relating to this matter from DD/MM/YYYY to DD/MM/YYYY.b. Day-to-day moment of File relating to this matter from DD/MM/YYYY to DD/MM/YYYY.(Now, in a decision involving the EPFO, IC SG has clearly ruled that the day to daymovement of the file has to be given in the format asked for www.rti.india.gov.in/cic_deci14_M_37059.pdf05. Inform me reasons for the delay06. Inform me Name & Designation of the officers/Officials responsible for taking actionon your request.07. Inform me Name & Designation of the officers/Officials responsible for causing delayon your request.08. This application may also be treated as a Notice u/s 80 CPC and the action takenthereunder may also be inform to me in due course.09. I have paid fee for the purpose. I am a consumer. The delay is a deficient service.Moreover I am being harassed. What compensation is proposed to paid to me. if Nothing,This may please be treated as a Notice under the Consumer Protection Act, 1986.10. Inform me the manner in which the PA is proposing to compensate you for the mentalagony and deficient service.11. Any other point on your mind (Think Hard).[COLOR="Red"]DO ALL YOUR CORRESPONDENCE THROUGH SPEED POST.[/COLOR]Heres the web address of the Helpline of the President of Indias Secretariat where youcan file and/or upload your grievance and later on view the status of the same. You mayalso file an online complaint to the President of Indias Secretariat at http://helpline.rb.nic.in/The grievances arising out of unsatisfactory response or No response from theMinistry/Department concerned will be taken up by the PG officers of DAR&PG who willtake up the matter with the Ministry/Department concerned for close monitoring andexpeditious redress. You can lodge your complaints for all ministries of centralgovernment and state governments at the following link http:// cpgrams.nic.in/Netizen/arpgn.asp?wci=grievance&wcuMost probably your work will be done with a quick pace, which you would had neverexpected under normal circumstances.You will find necessary help for filing the RTI Application by clicking the [B]Home[/B] or[B]RTI Guide[/B] button at the top of www. rtiindia.org

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  • Also please use the customized Google search bar located at the top of this page andsearch for [B]Income Tax Refund[/B], etc. and you may get a/many threads.Surendera M. BhanotMob: [email protected] wrote on 24 July, 2010, 14:33It appears that Mr. Surendera M Bhanot is either too naive or not aware of thefunctioning of the system of RTI-handling by the IT Deptt. With a totally non-functionalOmbudsman just sitting idle, the moment an RTI application is filed by an assessee, aphone call comes to him enquiring as to whether this is the last time he would be filinghis return and whether he is prepared to face the consequences of the RTI application.The higher officials like Jt. or Addl. CIT/CCIT, etc., DO NOT encourage petty assesseesmeeting/pestering them and the assessee is forced to ultimately go to the BABU sittingover the refund matter, without any fear of any action even by a nincompoof vigilancedeptt full of known corrupt officers. It is the system, Mr. Surendera M Bhanot, it is not anIT Deptt-specific problem-the whole countrys admn. from the top most bureaucrats tothe lowest who are now bonded to this inevitablr system. Like death, corruption is theultimate reality/truth in India. The IT deptt., like the Police, Sales Tax. RTOs, CGHS, Govt.Hospitals, Municipalities, IAS, Customs, Excise, Railway, etc.-NONE cares for RTI or CBI orCVC, since rates are fixed. You must catch the right CONTACT.Nisban wrote on 25 July, 2010, 17:29TDS is correct. The only way to get refund is to pay and keep paying bribes to the top tobottom of the corrupt deptt.Vijaya wrote on 26 July, 2010, 18:52Why are we putting up with this? Unfortunately, my experience with RTI is that it is awaste of our time and money. Usually, they just say they cannot find the records so pleasesupply copies!!I noticed that none of the Babus sitting there had any knowledge of what they were doingexcept that they had to copy something from one register into another and put somerubber stamps etc. I dont know how they recruit such dumb people. Reservation or not,atleast these people should have some knowledge of what they are doing everyday. Mybhajiwala can calculate faster and better than these idiots anyday. The worst is theattitude of these people. As if, they are royalty and we are beggars. We really need aBollywood style hero to come and thrash these people into shape.Rajkumar wrote on 4 August, 2010, 0:05OOPs, so many quires against the department. May be ones own experiences.Who wants the Refund order in hand? The middle man, who later on en cash it?The RO is now generated on line, nothing is to be done manually. The wrong income isthe mistake of the filing of the ROI , e-return , in correct data field.The credits are the mistake of the Tax Deductor, who did not filed TDS return, or givenincorrect info in the TDS return(That may be you), Some time the deductee (assessee)does not gives PAN to the deductor.

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  • There is not only ones mistake / improper handling.Though thousands of refund orders were issued , without any hassle.Non-issuance of RO , only becomes reality when something incorrect is filled in.CHAKRADHAR PRASAD wrote on 19 September, 2010, 23:30Sir , I am Central Govt servant. Due to wrong computation of Income Tax my officededucted Rs. 1000/- as TDS in the month of Oct. 2009. Although my income after rebateand saving was less than 1,60000/-. sir at the of filling the return I have mentioned it inthe Saral From. Now I want to know how can I get the refund of the above mentionedamount.

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