Union cabinet clears integrated ITR filing system

The new project will have significant benefits for taxpayers

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The Union cabinet on Wednesday approved a Rs 4,200 crore project of the Income Tax to felicitate the ease of filing tax returns and faster refunds. 

“The new system will replace the existing one,” Union minister Piyush Goyal said briefing the media about the cabinet decisions. Under the present system, the time required for giving tax refunds is over 60 days. It will come down to one, the minister said.

The new project will have significant benefits for the income tax department and taxpayers through various functionalities such as pre-filling of ITR. It will reduce refund time drastically and help tax payers by facilitating resolving of outstanding tax demands.

“The decision will ensure horizontal equity by processing returns filed by all categories of taxpayers across the country in a consistent, uniform, rule driven and identity blind manner. This will assure fairness in tax treatment to every taxpayer irrespective of their status,” a cabinet statement said.

By faster processing of returns and issue of refunds to the taxpayer's bank account directly without any interface with the department, by adhering to international best practices, and by providing processing status updates and speedy communication using mobile app, email, SMS and on the department website, the decision will ensure transparency and accountability.

In another key cabinet decision, the cabinet committee on economic affairs, chaired by Prime Minister Narendra Modi approved the capacity expansion of Numaligarh Refinery from three million metric tonne per annum to nine million metric tonnes. It involves setting up of crude oil pipeline from Paradip to Numaligarh and product pipeline from Numaligarh to Siliguri at a cost of Rs 22,594 crore. The project is to be completed within a period of 48 months, after approval and receipt of statutory clearances, Goyal said.

The refinery expansion will create job creation in the northeast states, apart from meeting the deficit of petroleum products in the region. 

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