Automation Boosts Taxpayers’ Trust – 89 Per Cent Report Swift Income Tax Refunds: CII Survey
New Delhi, November 23: A recent survey conducted by the Confederation of Indian Industry (CII) has revealed that automation and simplification in the Income Tax Return (ITR) refund process have significantly boosted taxpayers’ trust in the Income Tax Department. The survey, which involved 3531 respondents, highlighted the positive impact of recent government initiatives in streamlining and automating the taxation regime.
According to the survey, an impressive 89 per cent of individual taxpayers and 88 per cent of firms reported a considerable reduction in waiting time for receiving income tax refunds. This indicates the efficiency of the measures taken by the government to simplify and automate the refund process.
The extensive measures introduced by the government to streamline, simplify, and automate the taxation regime have borne rich dividends, said R Dinesh, President of CII, commenting on the survey results.
The survey also revealed that 87 per cent of individual taxpayers and 89 per cent of firms find the process of claiming income tax refunds convenient. This reflects a positive shift in the taxpayer experience, demonstrating the impact of simplified procedures.
Moreover, over 90 per cent of respondents stated that ITR refunds are now automatically generated after filing the Income Tax Return, showcasing substantial success in automating the refund generation process.
The survey further noted that 75.5 per cent of individuals and 22.4 per cent of firms did not pay any excess Tax Deducted at Source (TDS) beyond their estimated tax liability. This indicates a more accurate and efficient TDS deduction process.
In terms of checking refund status, the survey recorded a significant improvement, with 84 per cent of individuals and 77 per cent of firms reporting a smooth experience.
One of the most noteworthy findings of the survey was that 89 per cent of individuals and 88 per cent of firms believe there has been a substantial reduction in waiting time to receive income tax refunds in the last five years (2018-2023). This reflects positively on the government’s efforts to enhance efficiency in the refund disbursement process.
Chandrajit Banerjee, Director General of CII, expressed his satisfaction with the survey results, stating, The significant reduction in waiting time to get an income tax refund over the last 5 years is encouraging as it reflects the Government’s unrelenting efforts to make the process simple and efficient.
The survey, conducted in October 2023, also highlighted that 53 per cent of individual taxpayers and 45 per cent of firms received their income tax refunds in less than a month, underscoring the increased promptness in the refund process.
Overall, the efficiency and speed of the income tax refund process have contributed to increased trust among taxpayers. An overwhelming 83 per cent of individual taxpayers and 85 per cent of firms expressed a heightened trust in the Income Tax Department.
The comprehensive CII Income Tax Refund Survey report was presented to Finance Minister Nirmala Sitharaman, showcasing the positive outcomes of ongoing efforts to enhance the taxpayer experience and build trust in the tax refund process.
This survey outcome not only highlights the success of automation in simplifying tax processes but also emphasizes the government’s commitment to creating a taxpayer-friendly environment.
With the increased efficiency and automation in the income tax refund process, taxpayers can now enjoy faster refunds, reduced waiting time, and a more convenient experience, leading to heightened trust in the Income Tax Department.
Note: The survey was conducted by the Confederation of Indian Industry (CII) in October 2023, with 3531 respondents, including individual taxpayers and firms from across India.
