INCOME TAX OMBUDSMAN

INCOME TAX OMBUDSMAN

WAY TO SEEK REDRESSAL OF YOUR GRIEVANCES

Have you been in trouble to get your refund from the tax authorities? Or been harassed time and again for an income-tax scrutiny year after year? Is there a permanent account number you have been waiting for years? If yes, there’s a way to get your grievances resolved.

Income Tax Ombudsman:

An ombudsman is a government official charged with representing the interests of the public by investigating and addressing complaints reported by individual citizens. The government has appointed former I-T officials or officials from the Indian Revenue Service as income-tax ombudsman. These officers are independent of the jurisdiction of the income-tax department and hence, operate as an independent arbiter.

Objective of Tax Ombudsman:

The Ombudsman is governed by, and has to act within, the framework of the Income Tax Ombudsman Guidelines, 2006 (“Guidelines”). The Ombudsman is an independent body and comprises of former Income Tax officials or officials from the Indian Revenue Service. These officers have been empowered to settle grievances and take up matters to the highest authority, with the sole aim of resolving it. They act as an arbitrator and are independent of the jurisdiction of the income-tax department.

Grounds for filing Complaints to Ombudsman:

The ombudsman can help you resolve issues linked to delay of tax refunds, such as if your refund came without a cheque or refund voucher, delay in updation of tax demand registers due to which tax-assessee was harassed etc.  Illustrative list is as below:

ü  Delay or discrepancy in tax refunds.

ü  Allotment of PAN and issues of PAN Card

ü  Impolite behavior of tax officials.

ü  Interest waiver.

ü  Seizure of account books by department i.e. issues relating to release of books of accounts and asset after the completion of the proceedings.

ü  Scrutiny selection procedure and failure to communicate reasons thereof.

ü  Erroneous demand matters/assets attachments causing harassment to assessee.

ü  Cases related to interest waiver, rectification applications, appeal effects etc.

ü  Issues relating to allotment of Permanent Account Number.

ü  Non credit of tax paid, including tax deducted at source.

ü  Non-acknowledgement of letters or documents sent to the Department.

ü  Conduct of proceedings beyond working hours at the IT offices.

ü  Matters concerning circulars of Central Board of Direct Taxes about the Income Tax Administration.

ü  Other administrative matters that have been violated.

ü  For further details, please refer to clause 9 of the Guidelines.

Time limit for complaint to Ombudsman:

No complaint can be made:

     a)       12 months after the reply was received from the superior authority;

    b)       13 months after the representation was submitted to the superior authority but no reply was received.

Who can file a complaint?

The ombudsman’s doors are open to anyone facing a problem related to issues listed in clause 9 of the Guidelines but the Ombudsman will not take cognizance of the complaint if it has been the subject matter of:

     ·         An earlier settlement made by the Ombudsman

OR

     ·         An appeal, revision, reference or writ before any Income-tax authority or a court of law. 

How are complaints resolved?

The ombudsman mediates between the income-tax department and the tax-payer or tax assessee and seeks to settle the issue and pass a decision also called ‘award’, based on the income-tax rules and guidelines.

PROCESS TO ADDRESS GRIEVANCES THROUGH OMBUDSMAN

Step 1:-No direct complaint to Ombudsman:

Before filing a complaint to Ombudsman, one needs to write a letter to the Income Tax Officer superior than the one complained against and if: -

    Ø  Such authority rejects the complaint

    Ø  The complainant does not receive any reply within one month or

    Ø  The complainant is not satisfied with the reply given to him by such authority then

Complaint can be made to ombudsman within one year of receipt of reply or if no reply is received, within 13 months of submission of letter.

Step 2:-Submission of Documents and Details to Ombudsman

There is no set format for addressing the complaint to the ombudsman. However, your complaint must be in writing and should mention the following:

     ·         Your name, address and PAN

     ·         Facts and details about the grievance- date wise complaints filed, responses, and the time          gap involved etc.

     ·         Income-tax authority against who you are complaining

     ·         Copies of the letter of the first complain made to the income-tax authorities and its result.

     ·         Other documents such as relevant income proof supporting your claim and complaint.

     ·         The relief requested from the Ombudsman.

The application can be filed through personal submission / post / E-Mail. However, when you are sending an electronic complaint, you have to sign the same in the ombudsman’s office “at the earliest opportunity.” If, the complainant is represented by an authorized representative then, power of attorney to represent the complainant has to be filed before the Ombudsman. Three sets of the documents are required to be filed.

Step 3:-Resolving of Complaints

The Ombudsman acts as an intermediary between the Income Tax Department and the tax payer. It tries to resolve the issue by hastening the process. Ombudsman will try to solve the problem by making settlement between the Complainant and the concerned authorities. If the complaint is not settled by agreement, he shall pass an Award. The award mentioned above shall consist of 2 components:

     •         Directions to the concerned Income Tax Authority for performance of its obligations

   •         A token compensation amount not exceeding Rs 1000/- for the loss suffered by the complainant.

Decision of the Ombudsman:

All decisions taken by ombudsman would be in line with the prevailing tax laws and only if the submitted documents are deemed fit. The decision of the Ombudsman thus has to be abided by the Income Tax Department and the tax payer.

Once the Ombudsman decision is passed, tax payers need to make known their acceptance of the “full and final settlement” within 15 days of receiving the letter stating the ombudsman’s decision, or as per the time frame mentioned in the letter. If one fails to do so, the “award proposed shall lapse and be of no effect”.

OMBUDSMAN OFFICES

Currently there are 12 offices for ombudsman, located in Mumbai, Pune, New Delhi, Ahemdabad, Chennai, Bangalore, Kolkata, Hyderabad, Kanpur, Chandigarh, Bhopal and Kochi. To locate your nearest Ombudsman click on the link given below:

http://www.incometaxindiapr.gov.in/incometaxindiacr/home.jsp?p1=ombudsman_contacts

Complaints addressed to the Ombudsman could be sent to the nearest Ombudsman Office. For Rajasthan, the office for Ombudsman grievances is Ahemdabad, Address: Room No.104, 1^st Floor, Nature View Bldg, Ashram Road, Ahemdabad. Contact person is Dr. Kalyan Chaudhary, Income Tax Ombudsman. Contact Details: Ph.No. 079-26581495, Fax: 26581376, Email: ahmd-itombuds .

Your Complaint Helps Other:

After you complain to the ombudsman, not only will it benefit you, but also benefit others. The ombudsman is asked to make a note of the problem areas for taxpayers, which is then sent to the Central Board of Direct Taxes (CBDT) and the Union Finance Ministry. The information is periodically submitted to the Central Board of Direct Taxes and the Finance Ministry. Ombudsman also reports to the CBDT about the officials found to have defaulted in their regular duties.

Thus, approaching the ombudsman can help the government and authorities better our tax process.

Disclaimer:

The information contained in this write up is to provide a general guidance to the intended user. The information should not be used as a substitute for specific consultations. I recommend that professional advice is sought before taking any action on specific issues.