The Finance Ministry is considering another move to make filing IT-Returns easier making it entirely paperless from the current partial system.
Currently, tax payers have to post a signed printout of receipt after filing their returns online and post them to the centralised processing centre (CPC) in Bangalore where it will be verified and an acknowledgement is sent in a month’s time.
It is likely that the new system without the need for physical verification will be introduced from July this year, if the ministry gives its nod to the Income tax Department, said officials.
Once the mandatory compliance is phased out, “the processing will become faster, and reduce taxpayers’ complaints,” the official told the HT.
In addition to this, the department is also planning to introduce linking of Aadhar Card and e-signature to IT-Returns filing system. This will reduce the processing time for the department and issue refund, which otherwise is becoming a burden to the ministry in the form 18% interest.
In a way, the delay on the part of the department is actually helping the returnees get more interest on their money struck in litigation than any investments in banks.