TAX DEPARTMENT WILL LISTEN TO YOU

The Income Tax Ombudsman Guidelines 2006
To improve the quality of tax administration and bring
about more transparency in the system, 'The Income Tax
Ombudsman Guidelines 2006' have been issued. The
new guidelines will come into effect from January 1. The
ombudsman, an authority independent of the local
income tax department, will resolve complaints of
taxpayers impartially and facilitate settlement of
disputed cases. This official will act as an arbiter to sort
out all your complaints about the tax department. If you
have any complaints against a tax official, this is the
watchdog you will go to and he is supposed to help.
The guidelines are described below in the form of
questions and answers.
1. What does The Income Tax Ombudsman
Guidelines 2006 offer?
The Income Tax Ombudsman Guidelines, 2006 enables
resolution of complaints of tax payers against the income
tax department.
2. Has the guidelines come into effect?
The Scheme has come into force from January 1, 2007.
3. Who is an Income Tax Ombudsman?
The ombudsman is an authority independent of the
jurisdiction of income tax department, who will resolve
complaints of taxpayers impartially and facilitate
settlement of disputed cases. This official will act as an
arbiter to sort out all your complaints about the tax
department.
4. What is the objective behind the guidelines?
The main objective is to improve the quality of tax
administration and bring about more transparency in the
system.
5. How many Ombudsmen are to be appointed and
where are they located?
The offices of Income Tax Ombudsman shall initially be
located at New Delhi, Mumbai, Chennai, Kolkata,
Bangalore, Hyderabad, Ahmedabad, Pune, Kanpur,
Chandigarh, Bhopal and Kochi. The Government may
notify additional locations and appoint an Ombudsman
for each location.
6. Is Tax Ombudsman a new concept?
No. Actually, it is a reintroduction of the scheme, which
was operational till 1960.
7. What sort of disputes can the Ombudsman
consider?
The Ombudsman can receive and consider any
complaints relating to the following:
• delay in issue of refunds beyond time limits
prescribed by law or under the relevant instructions
TYPES OF COMPLAINTS BEFORE OMBUDSMAN
issued from time to time by the Central Board of
Direct Taxes;
• sending of envelopes without refund vouchers in
cases of refund;
• non adherence to the principle of 'First Come First
Served' in sending refunds;
• non acknowledgement of letters or documents sent
to the department;
• non up-dating of demand and other registers
leading to harassment of assessees;
• lack of transparency in identifying cases for scrutiny
and non communication of reasons for selecting the
case for scrutiny;
• delay in disposing cases of interest waiver;
• delay in disposal of rectification applications;
• delay in giving effect to the appellate orders;
• delay in release of seized books of account and
assets, after the proceedings under the Income-tax
Act in respect of the years for which the books of
account or other documents are relevant are
completed;
• delay in allotment of permanent account number
(PAN);
• non credit of tax paid, including tax deducted at
source;
• non adherence to prescribed working hours by
Income Tax officials;
• unwarranted rude behaviour of Income Tax officials
with assessees:
• any other matter relating to violation of the
administrative instructions and circulars issued by
the Central Board of Direct Taxes in relation to
Income-tax administration.
• Any other ground that may be prescribed by CBDT.
8. When can the complainant file his complaint?
The complainant, before making a complaint to the
Ombudsman, must make a written representation to the
Income Tax authority superior to the one complained
against. The complaint with the ombudsman can be filed:
• If such authority rejects the complaint or
• the complainant does not receive any reply within
one month or
• the complainant is not satisfied with the reply given
to him by such authority;
9. What is the time limit for making complaint?
The complaint must be made
• within one year after the complainant has received
the reply of the department to his representation
APPLYING TO OMBUDSMAN
Vol. 3 Issue 1 January 4, 2007 Pages 8 Price Rs. 5
January 4,
or,
• in case, where no reply is received, not later than
one year and one month after the representation to
the Income Tax Authority.
10. Can a complaint be made before a Ombudsman
on the same subject matter settled through
pervious proceedings before any of the
Ombudsman?
No. The complaint should not be for the same subject
matter that was settled through the office of the
Ombudsman in any previous proceedings.
11. Can a complaint be made before a Ombudsman
on the same subject matter which has been or is
the subject matter of any proceeding in an appeal,
revision, reference or writ before any Income-tax
Authority or Appellate Authority or Tribunal or
Court.
No.
12. Is there any procedure for filing the complaint
before the Ombudsman?
• Any person, who has a grievance against the
Income-tax Department, may make a complaint
against the Income-tax official in writing to the
Ombudsman and must be duly signed by the
complainant.
• A complaint made through electronic means shall
also be accepted by the Ombudsman and a print out
of such complaint shall be taken on the record of the
Ombudsman.
• A printout of the complaint made through electronic
means shall be signed by the complainant at the
earliest possible opportunity before the
Ombudsman takes steps for conciliation or
settlement.
• The signed printout shall be deemed to be the
complaint and it shall relate back to the date on
which the complaint was made through electronic
means.
13. Can a complaint be filed by an authorized
representative of the complainant?
Yes. The complainant can be filed by an authorized
representative of the complainant.
14. What details are required in the application?
o the name and address of the complainant,
o the name of the office and official of the Income-tax
Department against whom the complaint is made,
o the facts giving rise to the complaint supported by
documents, if any, relied on by the complainant
o the relief sought from the Ombudsman;
15. What happens when a complaint is received by
the Ombudsman?
The Ombudsman endeavours to promote a settlement of
the complaint by agreement between the complainant
and such authority through conciliation or mediation;
16. What happens if the complaint is not settled by
agreement?
If a complaint is not settled by an agreement within a
period of one month, the Ombudsman proceeds further
to pass an award. Before passing an award, the
PROCEEDINGS BEFORE THE OMBUDSMAN
Ombudsman provides reasonable opportunity to the
complainant and the income tax authority, to present
their case.
17. What will the Ombudsman consider for passing
an award?
The Ombudsman will be guided by the evidence placed
before him by the parties, the principles of Income Tax
law and practice, directions, instructions and guidelines
issued by the Central Board of Direct Taxes or the Central
Government from time to time and such other factors
which in his opinion are necessary in the interest of
justice.
18. What will the Award consist of?
• Directions to the concerned Income Tax Authority
such as performance of its obligations like expediting
delayed matters, giving reasons for decisions and
issuing apology to complainants etc., except a
direction affecting the quantum of tax assessment or
imposition of penalties under the Income Tax Act.
• A token compensation amount not exceedin
Rs. 1000/- (Rs. One Thousand only) for the loss
suffered by the complainant.
19. What happens when the Ombudsman passes an
award?
After an award is passed, its copy is sent to the
complainant and the income tax authority named in the
complaint. It is open to the complainant to accept the
award in full and final settlement of his complaint or to
reject it.
20. What is to be done by the complainant if the
award is acceptable to him?
The complainant must furnish to the department, within
a period of 15 days from the date of receipt of a copy of
the award, a letter of acceptance of the award in full and
final settlement of his complaint. If the complainant does
not accept the Award passed by the Ombudsman or fails
to furnish his letter of acceptance within the said period of
15 days the award shall lapse and be of no effect.
21. Can a complainant seek extension of time for
sending his letter of acceptance of the award?
Yes, a complainant can make a written request to the
Ombudsman, for extension of time with the reasons for
seeking such extension.
22. What does Ombudsman do on receipt of
request from a complainant for seeking extension
of time for sending his letter of acceptance of the
award?
If the Ombudsman is satisfied with the reasons stated by
the complainant in his letter of request for extension of
time (for sending his letter of acceptance of the award),
he may grant extension of time up to further period of 15
days for such compliance.
23. What happens if the complainant sends a letter
of acceptance of the award in full and final
settlement of his claim?
The 'award' shall be binding on the Income Tax
Department. The 'Income Tax Authority complained
against' shall, within one month from the date of the
award, comply with the award and intimate compliance to
the Ombudsman.