The Union Cabinet has decided to set up a centralised processing centre for IT (Income Tax) returns at Bangalore at the cost of INR 255 crore as part of an exercise to quicken the processing of IT returns.
To start with, the Centre will focus on processing all electronically filed returns from across the country, and paper returns filed in Karnataka. Subsequently, its operations will be expanded gradually to cover paper returns filed in other States as well. The aim was to ensure that high skilled manpower of the IT department now deployed for processing the returns was utilised better in terms of pursuing cross verification of actionable information. The department would exercise full control over the process to ensure that the privacy and security of the taxpayers data were not compromised in any manner.