Income tax grievance redressal overhaul:
Faster response, demarcated list of officers for tax refund, TDS, PAN, waiver, other issues
Dec 5, 2024
Synopsis
Income tax:The income tax department has overhauled the grievance redressal system to make it faster. Experts say now taxpayers can expect faster resolution of various grienvances relating to PAN, TDS, tax refund and others. "The Income Tax Department of India has introduced several enhancements to its grievance redress mechanism in 2024. With the launch of the e-Nivaran and CPGRAMS system, taxpayers now have a more efficient way to address their concerns, track progress, and escalate unresolved issues as needed."
If a taxpayer is facing any issues or difficulty in comprehending any issue with his/her income tax return (ITR) or TDS certificate or any other income tax related issues, then they have an option to lodge a complaint with the tax department. This complaint is lodged through the grievance redressal mechanism. However, considering the fact that the number of grievances is very high, and they vary in nature, not all income tax officers might be well equipped to solve all types of grievances.
For example: For example: A centralised processing centre (CPC) officer can't handle grievances related to tax demand or section 220 notices, because an assessing officer (AO) commissioner of income tax as the case may handle this.
To give taxpayers clarity about which officer to approach or which department head to send the grievance complaint, the income tax department released a document in the last week of November 2024. This document highlights which income tax officers can handle which type of grievances and gives you clarity about whom to approach. Experts say knowing this information ensures a faster resolution of grievances.
Which tax officer can help you solve what type of grievances
This document by the income tax department clarifies the right process of filing complaints with the correct officer, such as submitting TDS-related grievances or issues related to Form 26AS to CPC(TDS) rather than the Assessing Officer, etc. "This eliminates confusion, reduces the likelihood of misfiling, and ensures a faster resolution of grievances," says Chartered Accountant Rahul Singh,Senior Manager, Advisory & Research, Taxmann.
According to the document by income tax department here's a chart explaining the level of problem-solving ability of tax officers:
| Serial number | Competent Authority | Particulars |
| 1 | E-filing | This department handles e-filing of income tax returns, statutory forms, and services like e-verification and e-proceedings. Grievances related to portal registration, profile issues, password, ITR/Form verification, e-proceedings, Instant PAN via Aadhaar, or income tax related cybercrime should be lodged here. |
| 2 | Assessing Officer (AO) | Assessing Officers (AOs) handle taxpayer assessments and ITR queries. Lodge grievances related to refunds, rectifications, demand corrections, appeal orders, PAN applications, or other pending matters with this department. |
| 3 | CPC (TDS) | This relates to the e-TDS scheme. Lodge grievances about portal access, TDS statement processing, defaults, Challan/BIN corrections, Form 26AS, Form 16/27D, TDS refunds, and TDS on property sales here. |
| 4 | CPC (ITR) | It handles Income Tax Returns processing. Grievances related to ITR-V status, intimations or notices under section 139 (9) or 143(1), unreceived refunds, tax processing issues, social media complaints or feedback should be lodged here. |
| 5 | DIT (Systems) | It manages IT systems for the Income Tax Department. Log grievances about technical issues with the e-filing website, PAN, tax payment system (OLTAS), refund banker (SBI) escalations, and assessment mismatches here. |
| 6 | National Securities Depository Limited (NSDL) | It handles all PAN-related issues, such as Aadhaar linking, duplicate PANs, digitalization errors,discrepancy letters, application problems, delivery issues, rejection and upload delays. |
| 7 | Unique Identification Authority of India | Infrastructure Technology Services Limited (UTIITSL) This, with NSDL, handles PAN-related issues like Aadhaar linking, duplicate allocations, digitization errors, discrepancy letters, application problems, delivery issues, and rejections. |
Source: Income Tax Department
A different circular released on November 4, 2024, by the income tax department had information on amended monetary limits and powers of tax officers in respect of waiver of interest paid or payable under section 220 of the Income Tax Act. In this circular the tax department has mentioned which tax officer has the authority to waive this interest.
Aniket Kulkarni, Chartered Accountant says, "The clear specification of authorities' vis-a-vis monetary limits for reduction or waiver of interest aim to provide clarity to taxpayers. The taxpayer now has a clear understanding of whom to approach with an application for reduction or waiver of interest."
"While the conditions for grating reduction or waiver of interest were already existing in the provision, division of responsibilities to different categories of officers is expected to fasten the process of disposal of applications. However, subjectivity in applying conditions like what constitutes genuine hardship may differ from authority to authority," says Kulkarni.
Here's what else has changed in respect to grievance redressal in 2024
Chartered Accountant (Dr.) Suresh Surana says many changes were made in respect to the grievance redressal mechanism of Income Tax.
"The Income Tax Department of India has introduced several enhancements to its grievance redress mechanism in 2024, aimed at improving taxpayer experience and ensuring efficient resolution of issues. With the launch of the e-Nivaran and CPGRAMS system, taxpayers now have a more efficient way to address their concerns, track progress, and escalate unresolved issues as needed," says Surana.
According to Surana, here's a summary of what's changed and new in the grievance redressal process:
Unified Grievance Management System - e-Nivaran and Centralised Public Grievance Redress and Monitoring System (CPGRAMS)
The Income Tax Department has established a Unified Grievance Management system called e-Nivaran and CPGRAMS to address taxpayers' issues more effectively. E-Nivaran allows you to submit grievances online related to various income tax matters, including filing issues, refunds, and processing delays whereas CPGRAMS allows you to lodge grievances to the public authorities on any subject related to service delivery.
E-Nivaran - Submission Process
Two Submission Methods: Taxpayers can submit grievances through two primary methods:
Registered Users: Individuals with registration on the e-filing portal can log in and submit grievances directly through their accounts.
Unregistered Users: Even individuals without registration can file grievances by accessing the grievance section on the Income Tax portal.
Income Tax Grievance Resolution Timeline
The Income Tax Department aims to resolve grievances within 8 weeks from the date of receipt of the grievance. "However, many grievances are typically addressed within one month," says Surana. For urgent matters originating from high-level offices (like the Prime Minister's or Finance Minister's Office), resolutions are stated to be prioritised with a turnaround time of 21 days.
Income Tax Grievance Status Tracking
Taxpayers can easily track the status of their submitted grievances through the e-Nivaran system. This feature enhances transparency and allows taxpayers to stay informed about the progress of their complaints.
Income Tax Grievance Escalation Mechanism
If a grievance is not resolved satisfactorily, you have the option to escalate the complaints through the e-Nivaran platform. This escalation process is designed to ensure that unresolved issues receive further attention from higher authorities of the Income Tax Department.
Surana says: "The E-Nivaran scheme enables taxpayers to submit grievances online and receive a Unique Grievance ID for tracking their cases. This digital approach reduces administrative delays and paperwork. Taxpayers receive automated acknowledgments and updates regarding their grievances. This ensures they are informed about the status of their complaints without needing to follow up repeatedly. The grievance redressal mechanisms are now standardised across departments, which helps in maintaining consistency in how complaints are handled. It is important to highlight that the document by the Income Tax Department (table shown above) provides comprehensive information on the appropriate authority to which grievances should be reported, depending on the specific nature of the issue. This ensures that individuals can effectively direct their concerns to the relevant body equipped to handle their particular type of grievance, facilitating a more efficient resolution process."
[The Economic Times]
