Income Tax Dept releases interim action plan for FY25 on tax collection, refund approvals

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The Income Tax department has released an interim action plan for the fiscal year 2024-25, which will focus on areas such as identifying cases of TDS short-payment, expediting appeals processing, and others.

The plan sets deadlines for refund approvals, asset release, and compounding proposals. Moreover, the identification of cases is also mentioned, where seized assets are due for release and release the same by June 30, 2024.

The plan also stipulated that at least 150 appeals must be resolved by June 30 and that compounding proposals that were pending as of March 31, 2024, must be finalised.

Explaining the process, AKM Global's Tax Partner Sandeep Sehgal noted that the Central Board of Direct Taxes' (CBDT) is trying to enhance tax administration efficiency through this plan. Immediate steps include addressing grievances through e-Nivaran and CPGRAM platforms.

"Taxpayers are now required to file applications before the assessing officer for pending refunds pertaining to their respective assessments," Sehgal told news agency PTI.

The plan also aims to speed up Nil/Lower TDS or TCS Certificates applications resolution within a month of receipt from April 1, 2024, benefiting taxpayers' cash flows. Audit objection resolutions are prioritized, targeting settlement of major and minor objections by June 30, 2024.

"The proactive measures outlined in the action plan underscore CBDT's commitment to revenue generation, while concurrently fostering an environment conducive to ease of compliance. This aligns with the government's overarching goal of enhancing taxpayer confidence and promoting a culture of compliance," Sehgal said.

Aravind Srivatsan, Nangia Andersen Tax Leader, said the guidelines focus on tax collections, dispute resolution, and data updating for better fiscal management.

"The detailed nature of the guidelines highlights the meticulous planning undertaken by the government across various fronts. Ultimately, these directives aim to maintain business as usual, ensuring adherence to tax collection targets, thereby bolstering fiscal management and mitigating the need for additional borrowing. In essence, the objective is to safeguard tax collection," Srivatsan said.