Infosys, Income Tax dept launch CPC

The Income Tax Department (ITD) of India and Infosys have announced the launch of a Central Processing Center for efficient administration and processing of Tax Deducted at Source (TDS). The TDS facility will process more than 400 million tax deduction submissions filed by nearly 1 mn entities annually. India's union minster of finance, P. Chidambaram dedicated the facility to the nation at a special ceremony.

Infosys has been processing tax returns filed online by Indian citizens since 2008. Till date, the company claims to have successfully processed more than 30 mn tax filings and related refunds. In 2011, ITD selected Infosys as its managed services provider to facilitate central processing of TDS filings by business entities. As part of this new agreement, Infosys provides services to the department including technology infrastructure, maintenance, and upgrade of applications for the Tax Deduction Reconciliation, Analysis, and Correction Enabling System, better known as TRACES.

The new centralized system enables realtime reconciliation of TDS filings and refund claims, instant detection of erroneous claims and faster payment of verified claims, and significant savings for the government by reducing the interest accumulation on delayed tax refunds.

C. N. Raghupati, head - India Business, Infosys said: "The launch of the new CPC will play a key role in increasing the efficiency of tax filing for entities and processing of TDS for the Income Tax Department. We are delighted to partner with the ITD in their endeavor to improve the tax-payer experience in India."