Message from Central Processing Centre (CPC)

Message from Central Processing Centre (CPC)
In FY2012, CPC processed 1.32 crores returns, a 47% increase over FY 2011. Rectification requests
received by CPC has dropped from over 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.
Particulars FY 2012 FY 2011
Total Returns Processed (Lakhs) 132 88
Average Processing Time 59 151
Total Refunds sent (Nos.) 46.39 27.36
Total Refunds calculated (Amt, Rs Crs) 14,000 10,670
Total Rectification Requests handled 553,516 95,432
Average processing time of Rectification Requests 63 102
Assessment Year
Average Interest
paid u/s 244A (as a
% of refunds)
Total collections
from returns
processed in CPC
(Rs Crs.)
Arrear
Demand set
off (Rs Crs)
AY 09-10 7.9% 289.76 128.63
AY 10-11 5.4% 156.71 1533.12
AY 11-12 3.9% 26.14 1201.27
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 January 4.
 The Call centre headcount was doubled to nearly 60 folks and the portal used by the call centre
was enhanced - this resulted in a miniscule call abandonment rate over the last few quarters
and a significant improvement in call handling time
 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.
KEY CHALLENGES AHEAD:
 Assessee education
Data entry mistakes by tax payers have resulted in
i. tax credits not being given to the tax payers due to use of wrong TAN nos,
wrong dates of tax credits, amounts being rounded off instead of being exact
etc
ii. refunds not reaching the assessees – non filling of MICR codes, bank account
nos etc prevent faster disbursal of refunds
iii. number of other data entry errors result in returns being classified as defective,
delaying the processing of returns
 ITR V receipts
At this point nearly 20 lakh ITR Vs pertaining to AY11-12 have not been received by CPC. The ITD is
currently working on finding a solution to this issue. In the meantime all assessees whose returns
are not yet processed by CPC are requested to call the CPC call centre or check in the Efiling website
and confirm if their ITR Vs have been received. CPC has been periodically
sending email and more
recently SMS reminders to all the email addresses and mobile numbers which are stated in the ITRs,
wherever ITRVs have not been received.
 Defective Returns
Currently CPC is unable to process over 2 lakhs returns which have been classified as defective
under CPC's business rules. Assessees are requested to avoid errors mentioned below which are
among the top reasons for the return to be classified as defective:
1. ITR 4 - The assessee has not filled Part A P&L or Balance Sheet or both and gross receipts as per
and has entered a positive value in Schedule BP serial no1. This is the single largest reason for
returns being classified as defective
2. ITR 4 - P&L "Sales/Gross receipts of business or profession" is greater than 60 lakhs and AUDIT
INFORMATION not completely filled.
3. ITR 4S - has been filed but presumptive income u/s 44AD is less than 8% of Gross Receipt or
Sales
turnover u/s 44AE is less than Rs5000 p.m. per vehicle in case of heavy vehicles or`less
than 4500 p.m. per vehicle in case of other vehicles.
4. ITR 4S - has been filled but Code mentioned under Nature of Business is 601 or 602 or 603 or
604 which are incorrect codes.
5. ITR 1- Tax Deducted as per Schedule TDS 1 is greater than GTI (Gross Total Income)
6. ITR 1- Tax Deducted as per Schedule TDS 2 is greater than GTI (Gross Total Income)
7. Depreciation claimed in Point 42 of Part A – P&L but Schedule DPM /DOA not filled.
8. Mainly ITR 4- Deduction claimed under Chapter VIA under sections 80IA, 80IB,80IC, 80G but the
relevant Schedules not filled
9. All ITR forms - Brought Forward Loss has been claimed at Point 9 of Part B TI but Schedule CFL
(Carried Forward Loss) has not been filled.
10. All ITR forms - No Income details or tax computation has been provided in ITR but details
regarding taxes paid have been
filled and filed.
11. ITR 6 - Corporate assessee has filed ITR 6 but audit information is incomplete
12. ITR 4 & 5 - In audit information 44AB Flag is Y but Part A P&L and or Part A BS not filled.
13. ITR 4- Part A P&L and Part A BS not filled but entire tax is claimed refund which is more than
Rs25,000.
14. ITR 1- 4 - Gender Mismatch – The Gender provided in the return does not match with that
appearing in the PAN database.