Income Tax – e returns and post office returns – centralised processing - directions
The CBDT has issued detailed directions on the processing of returns.
It may be noted that it has been made mandatory to furnish e-return by the corporate taxpayers after 24.7.2006. However, for other taxpayers it is optional to furnish the return electronically. Important aspects relating to this have been clarified in Circular No. 9/2006. See - 12 10 2006.
Central Processing: Board has decided that the following returns are to be processed centrally:-
1. Returns furnished at postal offices.
2. Returns furnished under the Electronic Furnishing of Return of Income Scheme. Under this Scheme, e-return has to be filed through e-Return Intermediary, followed by a paper return.
3. Returns furnished under the Furnishing of Return of Income Internet Scheme, 2004.
4. Returns furnished under two step-procedure. First step is to transmit the details of the return and schedules electronically (without digital signature and then to furnish a paper return.
5. Returns furnished under digital signature.
Procedure: For centralised processing, following procedure has to be followed
1. In the region of each Regional Computer Centre (RCC)/Computer Centre, the concerned Chief Commissioner of Income-tax shall designate at least one officer to ensure that all the returns furnished with the postal offices are collected and stored centrally.
2. Chief Commissioner/Director General of Income-tax shall make necessary arrangement to separately receive the paper returns in respect of e-returns. These returns shall be transferred to the Assessing Officer designated for centralised processing of these returns.
3. Every cadre Controlling Chief Commissioner, in consultation with other Chief Commissioners/ Directors General of Income-tax of his region will decide the number of Assessing Officers (hereafter named as designated Assessing Officers) required for centralised processing of the above mentioned returns for each RCC/CC in his region. The designated Assessing Officer should be based at net-work stations only.
4. Every Chief Commissioner/Director General of Income-tax shall pass an order assigning concurrent jurisdiction to the Assessing Officers selected by the Cadre Controlling Chief Commissioner.
5. The cadre Controlling Chief Commissioner of Income-tax shall ensure that adequate number of Senior Tax Assistants/Tax Assistants (erstwhile Data Entry Operators) are posted with the designated officers for data entry and processing of paper returns.
6. The Joint Commissioner/Additional Commissioner of Income-tax, Commissioner of Income-tax, Commissioner of Income-tax (Appeals) or Chief Commissioner of Income-tax will continue to hold the jurisdiction over such processed returns, as at present.
7. The jurisdiction over a case for all the actions after selection of the case for scrutiny shall rest with the Assessing Officer with whom the designated Assessing Officer exercises the concurrent jurisdiction.
8. Where e-return does not tally with the paper return, the designated Assessing Officer shall correct the data in the e-return and process the case accordingly.
9. If there is a refund, the designated Assessing Officer shall, before completing the processing of the return, adjust the demand, if any, outstanding as per Individual Running Ledger Account (IRLA).
10. If the amount of refund after adjustment of demand as per IRLA does not exceed Rs. 25,000/-, the processing shall be completed and the refund, if any, shall be issued forthwith.
11. No separate approval of refund by CCIT/CIT/Addl. CIT/JCIT shall be required.
INSTRUCTION NO. , Dated: October 10, 2006