Handbook For Tax Consultants/Taxpayers-Nov. 2020: IT Deptt.

Handbook For Tax Consultants/Taxpayers-Nov. 2020: IT Deptt.

Chapter 1 Overview of Centralized Processing Center

1.1. Central Board of Direct Taxes (CBDT) has approved a Scheme for processing of returns of income ‘Centralised Processing of Returns Scheme, 2011’, in the exercise of the powers conferred by sub-section (1A) of section 143 of the Income Tax Act, 1961 (43 of 1961) which governs the processing of Returns at CPC, Bengaluru.

1.2. CPC commenced the development of the software and processes for processing of Income Tax Returns (ITR) in February 2009. It processed the first return on 26/10/2009.

1.3. The software and the processes were verified and tested by Standardisation Testing and Quality Certification (STQC), Department of Information Technology, Government of India at the time of deployment of the services to the taxpayers. A quarterly audit is conducted by STQC to verify the adherence of the Service Level Agreements of the Project.

1.4. CPC has processed more than 38 crore returns since its inception in 2009 and 76 lakh of returns during the FY 2020-21 as of 30/9/2020. The accuracy of processing of ITR has steadily improved over the years and from AY2017-18 onwards all the adjustments u/s.143(1) are made after issuance of notice to the taxpayer and giving an opportunity of hearing using the e-proceedings module on the website of the Department.

1.5. Over 10.79 Crore refunds totaling Rs.6 lakh Crores (inclusive of interest) have been issued directly to taxpayers through a central refund banker without any manual intervention (till September 2020). Online tracking of the status of refunds processing from the Department website is enabled for the benefit of taxpayers. Several improvements have been made by the Department to ensure secure transmission of the refund to the taxpayers over the years by evaluating the risks involved. From 1st March 2019, all the refunds are issued only by Electronic Clearing Service (ECS) mode using the validations of bank account numbers in coordination with National Payments Corporation of India. Option to Pre-validate Bank account number has been enabled for taxpayers. Taxpayers can select and Pre-validate any active bank account number for which the ECS remittance of refund is required.

1.6. CPC has achieved a peak processing capacity of 12 lakh returns per day during the Financial Year 2019-20. The average processing capacity is 3 lakh returns per day. The average processing time for AY 2019-20 has reduced to 35 days. Efforts are on, to reduce the timelines further as much as possible. The timelines are also dependent on the correctness of the inputs provided by the taxpayers in the ITRs.

1.7. CPC has minimized the use of paper, by switching over to an electronic mode of service of communications from the Department. Communication to taxpayers by print mode for notice, order, or other communication is sent only when the same is essential for any purpose, thus reducing the carbon footprint (saving Trees) substantially. Over 121.93 Cr digitally signed PDF-based communications have been sent by email. Over 111.56 Cr SMS alerts were sent to taxpayers at important stages of the processing of ITR. Over 5.53 Cr Intimations were sent by Speed post since the inception of CPC in 2009.

1.8. 70 Customer Service Executives attend to over 4,000 calls daily in 3 languages; over 81 lakh calls have been attended so far. In addition to Toll-Free services, from the month of Dec’14, Online Grievance Portal has been enabled in the e-filing website of the Department to register the grievance pertaining to CPC. Resolution to e-nivaran grievances was provided for 5.16 lakh grievances against 5.16 lakh received during FY 2020-21 (till 30th September 2020).

1.9. Online Rectification requests received from taxpayers are processed within statutory time limits. Over 63.28 lakh requests have been processed out of 60.27 Lakh requests filed (till Sept 2020). The rectification request from taxpayers has reduced substantially over the years starting with 4.65% (out of processed cases) rectification requests in FY2011-12 to 0.48% (out of processed cases) rectification requests in FY2019-20, indicating the accuracy of the processing of ITRs.

1.10. CPC has stored over 27.38 Cr physical documents through a Record Management Service and has been awarded ISO 15489 certification, the first entity in Asia to achieve this. The physical documents can be accessed by the Department either as a soft copy on the system or as a hard copy.

1.11. CPC processes related to Quality Management System has been certified by ISO 9001-2015. Information Security Management System has been certified by ISO 27001-2013. The Record Management System has been certified by ISO 15489-2016 and IT Services Management System at CPC is compliant with ISO 20000-1.

1.12. Taxpayer Services Facilitation

1.12.1. Dedicated Website: 24/7 Anytime/Anywhere Services to taxpayers

Taxpayers and their representatives are encouraged to verify the status of the ITR and other matters associated with the processing of the ITR on the Department’s website which is available on the internet and can be logged in at any time on 24/7 mode without any dependency. The services of CPC can be availed by logging into an account that enables the taxpayers to give responses, verify the status of ITR, tax credit mismatch reports, raise grievances under e-Nivaran and other services. They can use the Help Menu to know about the Frequently Asked Questions about all the processes related to taxpayer services of IncomeTaxDepartment related to ITR processing.

1.12.2. e-filing:

The Chartered Accountants and professionals and taxpayers can call 18001030025 for queries pertaining to e-filing of Income Tax Return or Forms, Pre-validation of the bank account number, e-proceedings, compliance-related matters, and other value-added services provided through e-filing Portal.

Other numbers for e-filing are +91-80-46122000 or +91-80-26500026. In emergency circumstances, an email can be sent to efilingwebmanager@ incometax.gov.in. Considering the number of users using the facility, the time for a response can vary. However, the response is given within a reasonable time which would be within 10 working days.

1.12.3. CPC Bengaluru:

Taxpayers and their representatives can call toll free phone number 18004252229 (BSNL Toll Free Number – India) or 18001034455 (Airtel Toll Free Number – India) for queries regarding ITR validation, ITR processing, defective returns, online Rectification, Refund issuance, legal heir, Intimation and other Income Tax Return Processing. Other numbers for CPC are 080-22546500 (Toll Number – India & abroad). In emergency circumstances, an email can be sent to cpcitr.grievance@incometax.gov.in. Considering the number of users using the facility, the time for a response can vary. However, a response would be given within a reasonable time.

CPC makes outbound calls using system based number 080-49397200 in certain circumstances to alert taxpayer/Chartered Accountants/Professionals and seek their attention related to taxpayer services. Further details related to Customer Service at CPC can be seen in Chapter 2.

1.12.4. Aayakar Sampark Kendra:

General Queries related to Income Tax are taken up by Aayakar Sampark Kendra (ASK) on toll-Free number 1800 180 1961 (or) 1961.

1.12.5. TRACES, Ghaziabad (For TDS related queries):

For queries related to Form 16, Tax Credit (Form 26AS), and other queries related to TDS statement, Form 15CA processing Chartered Accountants Professionals or taxpayers may contact TDS Reconciliation Analysis and Correction Enabling System (TRACES) on toll-Free number 1800 103 0344 (or) +91-120-4814600. The Chartered Accountant, Professionals, and taxpayers can send their queries to contactus@tdscpc.gov.in.

1.12.6. TIN-NSDL (For PAN/TAN queries):

Telephone calls for queries related to PAN & TAN application for Issuance/ Update through NSDL can be made to +91-20-27218080 and email can be sent to tininfo@nsdl.co.in.

Chapter 2 Customer Service

2.1. Centralized Processing Center of Income Tax Department (CPC), has enabled customer service to address queries of the Taxpayers and representatives of taxpayers by inbound tele-calling services, where executives are enabled to provide a response to queries of the taxpayers. The Queries are basically on ITR status, Processing, Rectification, Refund, legal heir matters, and intimation with respect to Income Tax returns that are processed at CPC.

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