The Income Tax Department has recently announced an interim action plan for the financial year 2024-25. This focuses on streamlining processes related to Tax Deducted at Source (TDS), refunds, and dispute resolutions.
The move aims to enhance efficiency and transparency in tax administration, with potential benefits for taxpayers across the country.
Identification of potential prosecution cases and faster refund disposal
One of the pivotal aspects of the action plan is the identification of potential cases of prosecution due to short-payment of TDS.
This means tax department will scrutinise these closely and may take action against the offenders for non-compliance with tax laws.
Additionally, efforts will be made towards expediting the approval of refunds, providing much-needed relief to taxpayers.
Cases where seized assets are due for release are slated for resolution by June 30, 2024, adding a timeline-driven approach to asset management and refunds.
Proposals and appeal disposal
The plan also emphasises the finalisation of proposals pending as of March 31, 2024, and the disposal of a substantial number of appeals by June 30.
The priority will be given to appeals filed before April 1, 2020, indicating a systematic approach to clearing long-standing cases and enhancing the efficacy of the appeals process.
The action plan also addresses the resolution of audit objections, aiming to settle a significant portion of them by June 30, 2024.
Measures for taxpayers
Sandeep Sehgal, Partner-Tax at AKM Global said taxpayers should file applications for pending refunds directly with the assessing officer, streamlining the refund process.
By doing so, they can expedite the refund process.
Furthermore, Sehgal highlighted another important commitment made by the tax department regarding applications for Nil/Lower Tax Deducted at Source (TDS) or Tax Collected at Source (TCS) Certificates.
The commitment entails resolving these applications within a month of their receipt starting from April 1, 2024.
This assurance indicates that taxpayers can expect quicker processing of their requests for lower TDS or TCS deductions, which, in turn, can lead to better management of their cash flow.
Overall, these measures aim to provide relief to taxpayers and enhance their experience with the tax filing process.
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