The majority of the people as well as firms noticed it easier to claim income tax refunds and suffer the shortage of waiting durations for obtaining that which shows the private survey of more than 3500 respondents.
More than half the respondents in the survey performed via the industry body Confederation of Indian Industry (CII) in October were individuals and the rest were firms, enterprises, and organizations.
The consequence of the survey shown to the finance minister Nirmala Sitharaman depicted that 87% of the individual respondents and 89% of the firms were found to claim the income tax refund effective.
84% of individuals and 77% of firms reported a smooth experience when checking their refund status.
According to a statement from the finance ministry, referencing CII president R. Dinesh, recent government efforts to simplify and automate the tax system have yielded significant benefits. These measures have streamlined processes, as evidenced by survey results indicating the speed and efficiency of income tax refunds.
The survey revealed that 75.5% of individuals did not pay more than their estimated tax liability in Tax Deducted at Source (TDS). However, among those required to pay TDS, 8% ended up paying an excess amount ranging from 10-20% of their tax liability. For entities surveyed, 22.4% did not pay any excess TDS beyond their estimated tax liability.
Among those obligated to pay TDS, 19.6% of firms paid an excess of up to 10%, while 25.7% paid between 10-20% extra, and 19% paid an excess TDS within the range of 20-30%, as per the survey findings.
The survey highlighted that 89% of individuals and 88% of firms have experienced significantly reduced waiting times for income tax refunds in the past five years.
According to the survey, 53.2% of individuals typically receive their income tax refunds in less than a month, while 48.9% of firms reported a waiting period varying between one to three months. Additionally, it indicated that 83% of individuals and 85% of firms have developed an increased level of trust in the income tax department.
Quoting the survey, a statement from the finance ministry revealed that more than 90% of respondents, spanning individuals, firms, and enterprises, acknowledged that income tax refunds are automatically generated after filing the income tax return form.
In recent years, the tax department has aimed to expand the tax base, rationalize tax rates, and enhance data collection and analytics. These efforts are geared toward fostering a more effective and efficient tax administration, with a focus on expediting refund processes.
