I-T dept launches central processing centre for TDS administration

The Income Tax Department (ITD) of India  has announced the launch of Central Processing Centre for administration and processing of Tax Deducted at Source (TDS) at Ghaziabad near New Delhi.

The TDS facility will process more than 400 million tax deduction submissions filed by nearly 1 million entities annually.

Infosys will be running the operations.

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 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 centralised system enables real time reconciliation of TDS filings and refund claims, instant detection of erroneous claims and faster payment of verified claims and   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.”