How much average processing time of ITR reduced in 10 years? Sitharaman reveals
The government has proposed to withdraw old disputed direct tax demands of up to ₹25,000 till FY10 and ₹10,000 for 2010-11 to 2014-15.
Union finance minister Nirmala Sitharaman on Thursday underscored the government's steadfast commitment to enhancing taxpayer services as she highlighted a transformative shift in tax assessment methodologies over the past five years.
Presenting the interim budget for the fiscal year 2024-25, Sitharaman said the introduction of innovative measures aimed at bolstering efficiency, transparency, and accountability within the tax system.
"In the last five years, our focus has been to improve taxpayer services," she said in the Parliament.
Central to this effort has been the overhaul of the age-old jurisdiction-based assessment system, replaced with the faceless assessment and appeal mechanism. This reform, she noted, has heralded a new era of streamlined processes, ensuring greater efficiency and fairness in tax assessments.
Budget 2024 Highlights: Rooftop solarisation, housing for middle-class, charging of EVs
Sitharaman mentioned a series of initiatives geared towards simplifying the tax filing experience for citizens. Notable among these is the introduction of updated income tax returns, alongside the rollout of a new Form 26AS and the implementation of prefilling mechanisms for tax returns.
One of the standout achievements highlighted by the finance minister is the remarkable reduction in the average processing time for tax returns.
“Introduction of updated income tax returns, a new Form 26AS and prefilling of tax returns have made filing of tax returns simpler and easier. Average processing time of returns has been reduced from 93 days in the year 2013-14 to a mere ten days this year, thereby making refunds faster,” she said.
The interim budget for 2024/25 is being seen as an economic manifesto for Prime Minister Narendra Modi's ruling party and will give clues to the market on its plans for fiscal consolidation, borrowings and future taxation policy.
"The budget is well grounded covering all important sectors, while balancing the electoral compulsions. It is high on optics, low on spending impact as fiscal consolidation remains paramount focus," said Garima Kapoor, economist, institutional equities Elara Capital.
Recommended Topics