The Central Board of Direct Taxes has taken a commendable initiative, of refunding nearly 40,000 crore by the end of April 2011. This comes as a huge relief for the tax payers as the entire refunding process will be completed in the first month of the financial year itself, where earlier it was received only in the last three months of the financial year.
This initiative will help the department to save interest, paid @ 1% per month. Adding on to it is the increase in the amount of tax collection which has gone up by20% in comparison to the previous year and it is considered that it is for the first time that the collection has exceeded the revised target.
Though, the initiative at start had problems in its implementation as the Income-tax employees were unprepared to adjust to the sudden shift from tax collection to refund distribution, given the prevailing constraints, including severe manpower shortage.
This will be regarded as a great achievement if all the process of refund goes well.