Centralized processing centre for I-T returns in Bangalore Okayed

New Delhi, Feb.5 The Union Cabinet has approved the proposal of the Income-Tax department to establish a centralized processing centre (CPC) at Bangalore for processing all electronically filed returns in the country and paper returns filed in Karnataka.
The CPC would enable the department to process the returns and issue refunds expeditiously, the Union Home Minister, Mr P. Chidambaram, told reporters after the Cabinet meeting.
It would encourage more taxpayers to resort to electronic filing of returns. The creation of the new centre entails an estimated expenditure of Rs 255.46 crore over a period of five years, he said.
The Minister also said that the process of selection of the vendor was in its final stages and the income-tax department expects to operationalise the CPC within the next four months.
The data relating to processing of returns would reside in the primary data-centre of the income tax department which has recently been commissioned at New Delhi. The income tax department would continue to exercise full control over taxpayers’ data so as to maintain privacy and security of the data.
Redeployment of resources
The establishment of the CPC will enable the department to release high-skilled resources, currently deployed for processing of returns, for redeployment to pursue large-scale cross-verification of actionable information.
The workflow in the CPC will be managed by departmental officers and staff who will be assisted by vendor supplied manpower. The department officers and staff will be responsible for logistics, coordination, supervising operations and sovereign responsibilities.
They will also be responsible for resolution of mismatches in the information contained in the tax return and the departmental database and redressal of public grievances.
The vendor will be responsible for developing software for processing of income tax returns and tax accounting. He will also be responsible for collection of returns from income tax offices, scanning data entry and storage of I-T returns.

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