The Income Tax Department (ITD) of India and Infosys announced the launch of a state-of-the-art 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 million entities annually. P. Chidambaram, Union Minster of Finance, Govt of India dedicated the facility to the nation at a special ceremony held recently.
Infosys has been processing tax returns filed online by Indian citizens since 2008. Till date, the company has successfully 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 upgrade of applications for the Tax Deduction Reconciliation, Analysis, and Correction Enabling System,( TRACES)
The new centralized system enables real-time reconciliation of TDS filings and refund claims, instant detection of erroneous claims and faster payment of verified claims, significant savings for the government by reducing the interest accumulation on delayed tax refunds etc. 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.”