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July 2008

Processing of returns of A.Y. 2007-08 — Steps to clear the backlog — Instruction No. 6/2008, dated 18-6-2008 issued by CBDT.

By Pinky Shah, Sonalee Godbole, Gaurang Gandhi, Chartered Accountants
Reading Time 3 mins
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48 Processing of returns of A.Y. 2007-08 —
Steps to clear the backlog — Instruction No. 6/2008, dated 18-6-2008 issued by
CBDT.

Kindly refer to above. The issue of processing of pending
returns has been discussed by the Board and following decisions have been taken
in order to clear the backlog :

(i) It has been decided that all CCsIT (CCA) should
redeploy officers and staff to clear the backlog in high pendency charges
keeping in view the overall work load including pendency of scrutiny cases.
Concerned CCsIT may take recourse to outsourcing of data entry as per standing
instructions of the Board/Directorate of Systems on the subject. For this
purpose, necessary funds would be placed at the disposal of the CCIT (CCA) for
outsourcing of data entry. CCsIT (CCA) should send proposals to the
Directorate of Income-tax (Systems) for outsourcing of data entry.


(ii) It has also been decided that in order to clear the
backlog of I-T returns for A.Y. 2007-08 in networked stations, 2D based AST
Software would continue to be used for processing the returns in ITR 1, 2, 3,
4. For non-networked stations, TMS Software would continue to be used.


(iii) Non-networked stations using TMS Software would be
provided CDs with OLTAS data as was done previously by the RCC so that the
Assessing Officers could verify tax payments.


(iv) In all I-T returns for A.Y. 2007-08 where the
aggregate TDS claim does not exceed Rs.5 lakh and where the refund computed
does not exceed Rs.25,000, the TDS claim of tax payer should be accepted at
the time of processing of returns. In all remaining returns, the AO shall
verify the TDS claim from the deductor or assessee as the case may be, before
processing the return. In all cases selected for scrutiny, all TDS claims
should be verified. In all cases where PAN was earlier found to be duplicate
or bogus and in cases where TDS certificates were called for processing
returns for the A.Y. 2006-07 but were not produced, the credit for TDS shall
be given after full verification.


(v) The rules in AST Software for matching OLTAS data with
the claim for credit made in the return are being modified to take care of the
common data deficiencies.


(vi) It has also been decided to launch a time bound TDS
drive to make those deductors who have not filed their TDS returns for F.Y.
2006-07 do so. The CsIT in charge of TDS functions are requested to follow up
cases where TDS returns were filed but PAN of some deductors were not reported
in TDS returns even though the TDS deducted from such deductees exceeded Rs.l
lakh. Information relating to such deductors/deductees will be provided by DIT
(Systems). This drive is to be an intensive two month campaign which is to be
monitored weekly by the Board and has to be completed by 31-8-2008. This drive
should be followed up by a concerted effort in improving TDS compliance.
Proforma of sending compliance report after TDS verification shall be sent
separately by DIT (Systems), New Delhi.




 



 

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