Automation boosts taxpayers' trust - 89 per cent report swift income tax refunds: CII survey

New Delhi [India], November 23 : A recent survey conducted by the Confederation of Indian Industry (CII) has highlighted the positive impact of automation and simplification in the Income Tax Return (ITR) refund process, resulting in heightened trust among taxpayers toward the Income Tax Department.
The survey indicates that a notable 89 per cent of individual respondents and 88 per cent of firms have experienced a considerable reduction in waiting time for receiving income tax refunds. This underscores the efficiency of recent government initiatives to streamline and automate the taxation regime.
Commenting on the survey results, R Dinesh, President, CII said: "The extensive measures which have been introduced by the government in the recent years to streamline, simplify and automate the taxation regime have borne rich dividends as is evident from the upbeat survey results on assessing speed and efficiency of income tax refunds conducted by CII."
A staggering 87 per cent of individual respondents and 89 per cent of firms find the process of claiming income tax refunds convenient. This signifies a positive shift in the taxpayer experience, reflecting the impact of measures taken to simplify procedures.
Over 90 per cent of respondents, including both individuals and firms, revealed that ITR refunds are now automatically generated after filing the Income Tax Return. This indicates a substantial success in automating the refund generation process.
The survey brings attention to the fact 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 suggests a more accurate and efficient TDS deduction process.
A significant improvement has been noted in the process of checking refund status, with 84 per cent of individuals and 77 per cent of firms reporting a smooth experience.
A remarkable 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, CII said, "The significant reduction in waiting time to get an income tax refund over the last 5 years by both individuals and firms, as shown by the survey results is encouraging as it reflects the Government's unrelenting efforts to make the process of getting income tax refunds simple and efficient over the years".
About 53 per cent of individual respondents and 45 per cent of firms disclosed that they received their income tax refunds in less than a month, underscoring the increased promptness in the refund process.
The overall efficiency and speed of the income tax refund process have contributed to increased trust among taxpayers. A significant 83 per cent of individual respondents and 85 per cent of firm-level respondents expressed a heightened trust in the Income Tax Department.
The survey, conducted in October 2023, involved 3531 respondents, with 56.4 per cent being individual respondents and 43.6 per cent representing firms, enterprises, and organizations. It covered participants from across India, with significant contributions from major states.
The comprehensive CII Income Tax Refund Survey report was presented to Finance Minister Nirmala Sitharaman, showcasing the positive outcomes of the 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.