INCOME TAX

Instruction No : 15

Date of Issue  : 6-11-2003

Subject : Streamlining the procedure for issue of Income Tax Refund Orders

1. Reference is invited to the following Circulars/Instructions issued by DOMS from time to time wherein the procedure for issue of Refund Orders was detailed :

1. DOMS Circular No. 39, dated 15-7-1980

2. DOMS Circular No. 54, dated 16-12-1987

3. DOMS Instruction No. 58, dated 8-2-1988

2. With a view to improve taxpayer services, the Board have decided to simplify the procedure for issue of refunds by discontinuing the system of sending advice Note to the Bank separately in cases of refunds up to Rs. 9,999. In present procedure for issue of refunds up to Rs. 999 has been extended to refunds up to Rs. 9,999. Further, there would be no separate refund books for refunds up to Rs. 9,999 and refunds of Rs. 10,000 and above. The revised Refund Book in 1+3 form will be used for all refunds irrespective of the monetary limits.

3. A. Procedure for issue of Refunds up to Rs. 9,999 (MICR)

The procedure for issue of refunds up to Rs. 9,999 is identical to the existing procedure for issue of refunds up to Rs. 999. The same is reiterated below :

The revised Refund Order Book consists of four foils (i ) Refund Order (ii) Advice of Refund (iii) Advice of Refund and (iv) Counterfoil of Refund Order and Advice. The "Refund Order" and "Advice of Refund" i.e., two foils will be sent by the Issuing Officer to the assessee who will present both foils to the Bank for encashment. The third foil "Advice of Refund" will be left blank and shall remain in the Refund Order Book. The fourth foil i.e., the "Counterfoil of Refund Order Book". The fourth foil i.e., the "Counterfoil of Refund Order and Advice" will serve as office copy.

B. Procedure for issue of Refunds of Rs. 10,000 and above (MICR)

The existing procedure for issue of refunds amounting to Rs. 10,000 and above will continue without any change. The same is reiterated below :

The revised Refund Order book consists of four foils - (i ) Refund Order (ii) Advice of Refund (iii) Advice of Refund and (iv) Counterfoil of Refund Order and Advice. Only the first foil, "Refund Order" will be sent to the assessee for presenting the same to the Bank for encashment. Simultaneously, two foils (second and third) of the "Advice of Refund" will be sent by the Issuing Officer directly to the Bank. Unlike in the case of Refund Order up to Rs. 9,999 mentioned in para 3A above, "Advice of Refund" (both the foils) in this case will be sent only to the Bank and not to the assessee. The fourth foil, i.e., Counterfoil of Refund Order and Advice will remain in the Refund Order Book and will serve as office copy.

C. Procedure for issue of refunds up to Rs. 9,999 (Non-MICR)

The conventional Refund Order Book presently in use for non-MICR refunds has been replaced by Refund Order Book in cheque book format (similar to MICR refunds). The procedure for issue of refunds, would be the same as has been explained in Para 3A above.

D. Procedure for issue of Refunds of Rs. 10,000 and above (Non-MICR)

The conventional Refund Order Book and Advice Book presently in use of non-MICR refunds has been replaced by Refund Order Book in cheque book format (similar to MICR refunds). The procedure for issue of refunds would be same as has been explained in Para 3B above. No separate Advice Book has been provided under this system.

4. In Ranges where refunds are to be prepared on Pre-printed Continuous Computer Stationery (PPCCS), the procedure for issue of refunds will be the same as explained above. However, for refunds upto Rs. 9,999, third foil, i.e., 'Advice of Refund Order' printed through computer will remain with the Assessing Officer unused, along with the fourth foil.

5. All earlier Instructions issued on this subject stand amended to the extent indicated above. The security measures and other instructions mentioned in the earlier circulars will however, continue to be followed scrupulously.

6. The revised procedure will come into force immediately. These instructions may be brought to the notice of all officers working in your Region for strict compliance.