Monday, July 30, 2012

Central Processing Centre (CPC) of Income Tax Dept.

Ever since the Central Processing Centre (CPC) started functioning to its full capacity in Bangalore from April-2010, the time taken to process refunds has reduced significantly and has helped the department to cope with the rapid growth in the number of tax payers.

This has led to a sharp increase in the number of e-return filers resulting in the increase of refunds by the department as the computer-based system generates refunds automatically. About 60 per cent of the tax collection target of the department is met through the collection of TDS.

To assist taxpayers, a limited call center service with two agents has been established at ITD-CPC, Bangalore. Taxpayer queries on status of ITR-V receipt at CPC, Bangalore will be answered on 080-22546500 aand on toll Free no. 1800-425- 2229 between 9:30 AM to 6 PM. The service will be available in English, Hindi and Kannada.

In FY2012, CPC processed 1.32 crores returns, a 47% increase over FY 2011. Rectification requests received by CPC has dropped from ove r 10% of returns filed in AY08-09, to 6.5% in AY 09-10, to 3.8% in AY 10-11 and further to just about 2.9% in AY 11-12 FY 2012 saw several milestones / records set by CPC. Between October 2011 and December 2011, the Financial Accounting System (FAS) at ITDCPC was revamped completely with three rounds of enhancements which resulted in a quantum jump in daily throughput. This resulted in:

a. Highest ever weekly processing of 7.06 lakhs in the week ended 30th December 2011

b. Highest ever monthly processing of 22.35 lakhs in December 2011

c. Highest ever quarterly processing of 53.6 lakh returns for Q3 2011

d. Week ended 6th January 2012, we generated and issued 1.9 lakh refunds

e. Consequent to the increase in throughput the average time for processing a return from the date of receipt of ITRV has dipped to below 40 days

f. Faster processing has also helped in a significant drop in refund reissue requests from 10% of refunds in AY 2009-10 to about 3% of refunds generated in AY 11-12.

Key Highlights-Financial Year 2012

Among other activities the following were key highlights of FY 2012.

· A countrywide email and post campaign was launched by CPC to inform the assessees of past tax demand lying in their names - over 17 lakhs emails and 8 lakh postal intimations were sent· A new digitization platform was developed, and 1.6 lakh paper returns have been picked up in March for processing.

· Facility for online request of Refund reissue to a new address and intimation request was launched in 

· For the first time ever CPC set up a demand management team to inform high demand assessees about the need to rectify their returns. An intense email, phone and even direct conversation with assessees helped in the filing of rectification requests reducing demand for over Rs3000crores.

· CPC also undertook several assesse / stakeholder interactive sessions in the year. This includes sessions in Bangalore, Chennai, Ahmedabad, Vijayawada, Guntur, Jalandhar, Ludhiana, Indore, besides interior locations in Karnataka like Mangalore, Belgaum, Hubli and Udupi. The latter sessions played an important role in reducing paper filing of returns across Karnataka.

· Besides meetings were held in CPC with key stakeholders like the Bombay Chartered Accountants Association, the Karnataka Chartered Accountants Association etc.

· CPC has also recommended several changes in the income tax forms and enhancement of validation checks when returns are being filed - a lot of which has been accepted by the department

· CPC also worked with the press to educate the public on the benefits of E filing of returns.

For more details see :


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