Tired of waiting months for your income tax refund after filing your ITR every year? Then this is great news for you. The Income Tax Department has granted new and powerful powers to the Central Processing Center (CPC) in Bengaluru to expedite the refund process and eliminate unnecessary delays.
With this groundbreaking change, all issues such as tax credit mismatches, TDS, advance tax, and interest on refunds will now be resolved directly by the CPC. Experts strongly predict that this revolutionary change will reduce refund processing time by nearly half. This Google Search-friendly content will explain how this technological change will directly impact your pocket.
CPC Bengaluru Becomes a Super Center
Many taxpayers still complain that their refunds are stuck or ITR processing is delayed, despite the system being largely online and automated. Understanding the root cause of this problem, the CBDT (Central Board of Direct Taxes) has delegated additional powers to the CPC, Bengaluru.
What was the old system
Previously, the CPC processed returns, but in many cases, tax credit mismatches or rectifications required verification or confirmation by the Circle Assessing Officer. This double layer caused unnecessary delays in both processing and refunds.
New System
Under the unprecedented new system, most tasks will now be handled directly by the CPC, eliminating the need for approval by a separate officer.
Which tasks will the CPC now handle directly
Tax experts have clarified that the CPC, Bengaluru, will now handle several important and technical tasks directly, thereby expediting the process. These tasks include:
Issuing demand notices under Section 156.
Resolving issues related to tax credit mismatches (such as discrepancies between Form 26AS and ITR).
Correcting errors related to Advance Tax and TDS.
Calculating interest payable on refunds under Section 244A.
Many technical issues related to computation will now be resolved at a single location, i.e., CPC. This single-point handling will significantly speed up the refund process.
Direct Impact on Your Pocket
While this change may be a behind-the-scenes technical matter, it will have a direct and positive impact on taxpayers’ pockets. Since a layer of unnecessary interference has been removed and most tasks will now be handled from a single centralized location, it is estimated that the time taken for return processing and refund issuance will be reduced by approximately 50 percent.
This is a huge relief for millions of taxpayers whose refunds have been held up for a long time. The simplified and faster system will also free taxpayers from paperwork and allow them to receive their money back promptly.