New Delhi: Finance Minister P Chidambaram admitted that there is delay in issuing of income tax refunds in some cases.
This is despite the streamlining of procedure for issuing of refunds and by comprehensive computerisation programme of the Income-tax Department, Chidambaram said during the question hour in the Lok Sabha.
Some delay is caused due to shortage of manpower; while in some cases verification of taxes paid or deducted causes delay in issuing the refund.
However, the department has put in place an effective mechanism for redressal of grievances relating to delay in refund, he said.
Chidambaram said that details regarding refunds delays are not maintained and normally most returns are processed and refunds are issued within a period of four months.
As much as Rs 29,435 crore was refunded by the Income Tax Department during 2005-06, Rs 28,514 crore during 2004-05, and Rs 25,737 crore in 2003-04, he said.
Income Tax Act provides for interest to the taxpayer for delayed refund, the Finance Minister said adding the present rate of interest stands at six per cent per annum.
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