Infosys launches Central processing centre for I-T Department

The centre will process more than 400 million tax deduction submissions

The Income Tax Department (ITD) and Bangalore-based Infosys on Monday announced the launch of a Central Processing Centre for better 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 million entities annually.

Finance minister P Chidambaram dedicated the facility to the nation at a special ceremony today.

Infosys has been processing tax returns filed online by Indian citizens since 2008. Till date, the company has processed more than 30 million 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 comprehensive services to the department including technology infrastructure, maintenance, and upgradation of applications for the Tax Deduction Reconciliation, analysis and correction enabling system better knows as TRACES.

The new centralised system enables real time reconciliation of TDS filings and refund claims, instant detection of erroneous claims and faster payment of verified claims. It also helps the government to significantly save funds by reducing the interest accumulation on delayed tax refunds.