On Thursday, the chief commissioner of Income-Tax, Mumbai, pulled up senior officials for delays in processing returns, which affected clearance of refunds. But 73-year-old S.C. Chaturvedi has been waiting for the Income-Tax (I-T) Department to release his refund of Rs 2.77 lakh since February.
Chaturvedi, who was informed by the department through a letter that the refund has been released on February 8, has made many rounds to the I-T offices at Bandra-Kurla Complex and Churchgate.
“They say that high value refunds have been kept on hold following the refund scam,” said Chaturvedi. After the Rs 14 crore scam came to light in January, the department had instructed its officials to clear high value refunds only after proper verification.
The refund belongs to Chaturvedi's son Ajay (42), a software engineer in the US, for the assessment year 2008-09. Ajay has given power of attorney to his father.
On January 30, Chaturvedi got a tax demand notice [on his son’s name] of nearly Rs 7.25 lakh. Ajay files return for the extra income earned from leasing out his bungalow in Bangalore to a private company. He files the return in Mumbai because his permanent address is in Malad.
After deducting the tax at source (TDS) at the full rate of 33 per cent, the firm deposited the rent in Ajay’s bank account.
“However, there are many rebates [on tax] in the form of repair, maintenance and other cost which the company was considering only at the financial year end,” Chaturvedi told Hindustan Times.
Hence, for the assessment year 2008-09, the family was eligible for a huge refund as the company had deducted extra TDS and deposited the same with the I-T Department.
Chaturvedi said he got the demand notice in January because he had not attached the TDS certificate issued by the company while filing return.
Chaturvedi approached the I-T office on February 1 with a letter saying that the demand notice has been sent erroneously and submitted the TDS certificate. The department subsequently cleared the refund.
On February 22, Assistant Commissioner of I-T Kamal Mangal wrote to Chaturvedi that an order has been passed on February 8 determining refund of Rs 2.77 lakh and it has been released on the same date through the refund banker, who would credit it in his bank account. The money has not yet reached Chaturvedi.
Chief Commissioner of Income Tax-13, N. C. Mohanty, in whose jurisdiction the case falls, said they have now received directions to release all such refunds. “I will see that it is done.”