Issue of refunds through refund banker to prevent fraud

New Delhi, Nov 3 (UNI) To prevent fradulent encashment of refunds like the recent refund scam in the capital, the Central Board of Direct Taxes (CBDT) is working out the possibility of the issue of refunds through a refund banker.

A pilot project in this regard is being launched to test its viability, a Finance Ministry statement said here today.

The Ministry has also asked the taxpaying public to cooperate with the Income Tax department and quote their bank account details correctly in their tax returns so that they get their refunds quickly and safely.

''Many returns are still received without bank account details or with incomplete details,'' the statement said.

The CBDT has recently taken steps to prevent fraudulent encashment of refunds, apart from issuing guidelines from time to time.

These include: -- Introduction of issue of refunds directly to the bank account of the taxpayer through the Electronic Clearance Scheme (ECS). The scheme, implemented in 13 cities in 2004, was further extended to 12 cities this year.

-- Mandatory quoting of bank account details on the refund vouchers with effect from January 1, 2006.

-- Cross-verification of high value refunds by the clearing bank from the issuing officer in the Income Tax department.

On the Delhi refund scam, the statement said the Tax department had taken action against persons involved.

UNI YJ RA VV1815