Jobs: IT professionals, wake up!

IN the first week of February, 500 employees were laid off from IT company, Tata Consultancy Services. But Chinmay Sahoo, an assistant systems engineer with TCS, Chennai, isn't worried. In fact he is confident of his position in the company. Here's why.

"Those employees who performing badly, consistently (getting a rating of two for performance) have been laid off. The message is loud and clear: if you perform, you are safe and will even be appraised," says Chinmay.

Similarly according to news reports, IBM laid off 700 employees (mostly freshers) citing 'performance in aptitude tests that were recently conducted in undisclosed IBM India locations'.

On a different note, revenues drive the IT industry and according to Dr Rafiq Dossani, author of the book India Arriving: How this economic powerhouse is redefining global business, and a senior research scholar at Stanford University, they are not rising. "In the fourth quarter the IT industry has witnessed a decline in revenue from 40 to 35 per cent, although the margins have been steady at 25 per cent," he says.

So, if employees are confident about their positions, don’t the falling revenues mean anything?

Good and bad news
"The current layoffs we saw are only a way for companies to re-align costs. But we cannot rule out the impact of the dollar depreciation," says Balu Pandian, Director-Business Development of Jobstreet.com, a jobs portal. According to him India’s value in the global ITES market has been due to favourable costs and quality work.

And this won’t change. "However, those large contracts that companies hope to sign will get delayed," says Balu, who also feels that the presidential elections in the US, will affect this, since corporate America cannot afford to announce more offshoring projects during this time.

Several smaller IT companies have used strategies like faster promotions with fancy designations, to help retain talent. "Smaller companies may stop promotions altogether and the larger ones will think 100 times before promoting their staff," he says.

Also, no more 20 to 30 per cent hikes. Your performance will be checked thoroughly before your appraisal. According to Balu, this year hikes will be in the range of 10 to 12 per cent. "The hike cut-offs will be liable only to those companies, which have dollar dominated revenues. Companies earning their revenue in Euros or the Japanese Yen have nothing to worry about," he adds. At the moment Indian IT firms, which have dollar exposure for revenue, are Infosys, TCS, Wipro etc

So, should you worry?

Don't worry, be pro-active!

"There's no need to worry, because the need for technology will always remain. At the moment what an IT professional needs to do is to cull out those high expectations in terms of hikes and hefty packages," he suggests.

So, though we advice you NOT to panic, it's a good idea to improve your skill sets.

How to pull up your socks!

Balu recommends smart mantras for IT professionals on how to leverage their positions in their companies.

i. No more allowance tantrums!

You may have been pampered to the hilt with various allowances. Well, you may need to reset remuneration expectations keeping in mind that ultimately it is your company's stock prices that keep it running. In order to meet shareholder expectations, companies will cut costs.

ii. Be prepared to work longer hours.

Forget those five-day working weeks, as most companies may expect you to work on Saturdays too. The number of billable work hours will be under strict scrutiny, since, the company will want to get maximum productivity at reasonable costs.

iii. Don't cut any slack.

Lax workers will be put to task! So, if you didn't have any projects to work on, very soon your plate will be full. Deadlines will be stricter. If your team leader expected you to finish a project in three months' time, he may ask you to finish it in two and half months.

iv. Reduce job hopping, sharpen skills.

Re-think switching companies just for better pay packages. Think of your career from a long term perspective. Use your free time to improve your capabilities and gain domain expertise.

v. Go easy on those EMIs.

You may want to buy a swanky new car or a that LCD television set. But think twice, before taking a loan. Those excessive Equated Monthly Installment can prove to be a huge liability!

Inflation effect: consumer goods to cost more

From desktop computers to television sets, refrigerators and washing machines, consumer electronics are the latest to come under the shadow of rising inflation.

Manufacturers of these goods have either raised or are planning increase prices over the next few months, as they apparently are unable to absorb a sharp spike in costs of raw materials and components, especially steel.

This is the first time in many years that consumer electronics and computer makers in India have increased prices, which consistently fell over the past decade as the government cut duties and brought policies to encourage more production and competition in this segment.

Computer maker Hewlett Packard said it will increase prices of its laptops in India by 13 per cent. This means a an HP laptop that now comes for Rs 40,000 will cost Rs. 45,200 excluding local taxes. Lenovo, the world’s third largest PC maker, plans to follow suit. “This must be an appropriate time to hike prices," said Anil Philip, executive director, Lenovo India.

Similarly, LG Electronics India, the subsidiary of Korean consumer electronics major LG, has announced that it will hike prices of monitors and its brand of CD/DVD writers by 7-10 per cent, R Manikandan, Business Group Head at LG said in a statement. According to industry sources, there could be minor price hikes on high-end mobile phones.

One of the reasons for manufacturers to increase prices is the global rise in component cost arising out of a shortage and the depreciating rupee against the US dollar.

“The primary reason for this hike is dollar appreciation coupled with price hike for some components," said Rajiev Grover, Director – Consumer Products, Personal Systems Group, HP India. "We will be increasing the prices with immediate effect and over the next few days the hike will be extended to the entire notebook range,”

“Since most components that go into laptops and other gadgets are imported, any fluctuation in the dollar will impact the prices of these products,” says Vi

My strategies for a cheaper US study stint

Working professionals share their back-to-school experiences. We profile a database management analyst, who gave up his job in Mumbai to study abroad. He now earns five times more!

Name: Sameer Gokhale
Age: 27
What I do: I am a database management analyst.
Where I studied: I did a Master's degree at the University of Texas.
Location: Houston in Texas, USA

Why study more?
After completing my Bachelor of Pharmaceutical Sciences degree from University of Mumbai in May 2000, I began working in the pharmaceutical sector. I was fortunate to get a versatile experience in market research from companies like Novartis India, Wockhardt, and Nicholas Piramal India.

As a pharmacy graduate, I was equipped with adequate knowledge of pharmacy, but my statistics skills weren't very polished. I wanted to get into pharmaceutical market research, which needs a blend of pharmaceutical and statistical knowledge. This hindered my growth in the field. In 2003, I decided to pursue a Master’s degree, abroad.

Applying to universities is expensive!
I shortlisted programmes in the USA, based on factors like overall ranking, the cost associated with it, available projects and funding options at the university. After factoring in all this I decided to apply to four different university programmes including the University of Texas School of Public Health (UTSPH).

Initial expenses for preparing and applying to US universities were considerably high and included exam fees, study material fees, application expenses, professional coaching for preparation and consultation charges for short listing universities.

Most students apply for around 10 to 12 programmes. Applying to number of programmes can be expensive. In addition, to the GRE and TOEFL fees (GRE cost me about Rs 6,400 and the TOEFL Rs 6,000), each application costs around Rs 3,000-Rs 3,500.

Each application packet included, the application fee of Rs 1,800-Rs 2,400 approximately, preparation cost for all supporting documents like recommendation letters, attested copies of marksheets/transcripts/bank statements, credential evaluations report etc came to Rs 600, approximately and the courier charges were Rs 500 approximately.

Smart tips:

1. If you shortlist your programmes well, you can apply to say five or six universities and get positive replies for at least two. Applying to a few, focused programmes saved me some money. For evaluating credentials (the universities I applied to, required students to have their credentials evaluated from evaluating agencies in the US) I approached World Education Services.

Basically, each university specifies the type of official records it requires to document past education. In American terms, these are called transcripts or credentials and include a list of courses that students have taken, when they were taken, and grades received for each course.

Usually, the university will require your entire scholastic record from secondary
school and/or university sources in a similar manner.Credentials are an important part of the admission procedure in any university in the US.

2. I did not spend a bomb on professional coaching or consultation, but did my own homework.

3. I applied for loan-based scholarships to different trusts and missionaries in India. Keeping an eye on major newspapers for scholarship opportunities and their deadlines, was a part of my daily schedule all year long.

These trusts can help a prospective student with amounts ranging from Rs 30,000 to Rs 1,00,000. I got Rs 30,000 as a travel award from JN Tata trust and Rs 75,000 as a loan scholarship from BD Bangur Trust.

My bank savings also helped me bear a part of the expenses.

Part-time work, pays some bills

One advantage of graduate studies in the US is that you can work part-time, while you learn. As soon as I arrived on campus, I began meeting faculty, in the quest of a part-time position. I landed one, in the second month.

At UTSPH, all students working on-campus are eligible for in-state tuition, which is 70 percent less than out-state tuition. I worked as a graduate research assistant for the first year and as a teaching assistant in the second. Apart from the monthly stipend, there were many other benefits of working on-campus like getting health insurance, tuition waiver or considerable reduction in tuition fees etc.

According to the university's policy, although classified as non-residents, all international students employed as teaching or graduate research assistants in state institutions of higher education throughout the semester, get the privilege of paying resident tuition for that particular semester, commonly called as in-state tuition. All other non-residents of Texas pay out-state tuition fees.

Tuition expenditure for me was around $1,200-1,400 (about Rs 55,212) per semester. I was getting $1,400 as a monthly stipend. Housing and other living expenses came to around $300-$350 (about Rs 13,802) per month. Another $100-$150(about Rs 5913) went towards groceries, commuting and miscellaneous expenses.

During the summer semester, international students were allowed to work full-time during those three months. So, there's money to be made now!

Teaching superstar!
Being a teaching assistant was quite challenging and I thoroughly enjoyed it. I was actively involved in teaching two to three graduate level courses. My hard work paid off when I received the ‘2007 James Emerson’s Award for the Outstanding Teaching Assistant’. I had the opportunity to meet and network with some of the world-class researchers at Texas Medical Center. I even presented my research at a student dissemination conference on public health conducted by the Johns Hopkins Bloomberg School of Public Health.

Apart from academics, I was actively involved as a student leader at Office of Student Affairs. In addition, I also chaired the University of Texas Indian Student Association from 2004 to 2006. All these experiences have helped me sharpen my managerial and leadership skills.

The final frontier
After receiving my Master's degree from The University of Texas Health Science Center, I started working at the University of Texas Medical School as a database management analyst. My responsibility over here is to manage and analyse genetic data for the division of Rheumatology and Clinical Immunogenetics, a part of Internal Medicine at UT Medical School. I am currently earning five times more than what I was earning back in India.

Going back to school after working for some time can be helpful because you have a better perspective about what you want to study. Just planning your expenses is crucial before you consider further education!

Why you should get married:WEALTH

MOST 25-year olds I know run a mile when they hear the word marriage. Why would I want to give up freedom for a life of bondage, bickering, tantrums and responsibility, they ask.

The answer lies simply in this fact: it is good for the bank account!

How? With some smart manœuvres, you can reduce taxes substantially through your spouse. This works especially if you are in the highest tax bracket and your significant other does not have a taxable income.

At the risk of being labelled a chauvinist, let us assume (only for the sake of argument), that the wife stays home and the husband earns.

First, let's do some ground work. Let's say there are two separate joint accounts, one for husband/ wife and the other for the wife/ husband. Bear with me if this sounds pointless to you right now. But it is important!
1. Let her invest
So we have the wife running a super efficient home and bringing up beautiful kids. But that doesn't stop her from making some shrewd investments in her spare time.

Why don't you give her some money which she can invest smartly for your family?

Are you asking 'why'? Simple. To save you a chunk of tax. This is how it works.
Step 1: You start a tax file in her name.

Step 2: You loan her money which you would have otherwise invested in your name.

Step 3: She invests this money.

Step 4: Any income she earns up to Rs 1.45 lakh (Rs 145,000), is non-taxable. That means, assuming a rate of return of around eight per cent, she can make investments of over Rs 15 lakh (Rs 1.5 million), which would all be tax free.

Step 5: You have now essentially saved 33 per cent tax on the income she has generated in her name. Were it in your name, it would have been taxed due to your already high tax bracket.

There is a catch. You cannot transfer money to her as a gift. Because the income on a gifted amount will clubbed in your hands for tax. How do you work around this situation? Caught you! You missed what I said earlier. I said, loan the money to her.
Technically, an interest-free loan is possible, but it is better to have a contract by which you charge a nominal rate of interest (say, the savings bank rate). So she earns interest on the investments and pays you interest on the loan; the money stays in the family!

What you have just done is made an income of over Rs 15 lakh (Rs 1.5 million), tax free! And, of course, made your wife rich!

2. Share the home
If you are reconsidering the idea of marriage, here's sweeter news. If you buy a home today, it is almost certain that you will take a home loan. The trick is to opt for a joint loan.

This is how it works.
Step 1: Buy the property with both having an equal share. (This not only ensures you get tax breaks, it also prevents you from being thrown out if you forget your anniversary!)

Step 2: You take an equal loan. And you pay the interest and principal payments separately from your individual bank accounts. (Fixed or floating rate loan? What's better now? )

Step 3: Each of you is now entitled to an interest deduction of up to Rs 1.5 lakh (Rs 150,000), under Section 24 of the Income Tax Act, and a principal deduction of Rs 1 lakh (Rs 100,000), under the new
Section 80C.

Now, you have not only made your wife incredibly happy with her share of property, but between the two of you, you have managed to save tax on Rs. 5 lakh (Rs 500,000) worth of income!

3. Bring on the kids
So you marry. And then come those bundles of joy that demand midnight feedings and constant diaper changes. But kids reward you with more than just toothless smiles.

They actually help you save some tax. Your little star is a tax saver already.

You can earn an income of Rs 1,500 for each child totally tax free. Say you have two children, making it Rs 3,000. Capitalise this by, say, seven per cent, and you have just made an income on over Rs 40,000 totally tax free.

6 ways to ruin your retirement

THE world is not what it used to be. Gone are the days when you could get a plate of idlis for one rupee or the days that you could walk on the roads without fear of being run over or mugged. Or when the only channel you could watch was Doordarshan. And yes gone are the days when you could expect your children to take care of you when you grow old. Nuclear families are in and so are longer life spans. And with inflation and escalating medical costs - you're looking at serious money for a comfortable retirement.

Some random fixed deposits or stock options do not a corpus make. So are you really doing justice to your post-retirement corpus?

The list of what TO DO is too long, so we spoke to experts, asking them what NOT TO DO when you are planning for retirement, and all the following is from stuff that they had to say.

DO NOT put all your money in fixed instruments:
Kartik Jhaveri, director, Trancend Consuting (India) Pvt Ltd. says, "At first sight, it seems the most logical thing to do. After all, the safety of your hard-earned money is at stake, and the government is giving you a comfortable rate of interest. But consider this: the money you keep does not match inflation."

For example, historically average inflation has been in the range of 5-6%. Even if bank deposit interest rates are about 6.5%, you actually end up losing money. Tax plays a big role too here. The interest herein is not going to be tax-free, so your effective return will be less than 6.5%.

As for corporate bonds, investment advisor Gautam Narain has a word of caution. "HDFC bonds used to give in returns of 16% at a time, now it is down to 6 to7%. Unless the company has a AAA rating, investment in company bonds will be asking for trouble".

DO NOT lock in all too much money for too long:
The problem with fixed income instruments is the lock-in period, Narain says. While planning for that post-retirement nest egg, remember that you need both flexibility and liquidity for your savings. Accordingly, it is not at all a good idea to put all the money in a fixed instrument like corporate or company bonds or long term bank deposits, says Jhaveri. The biggest problem with this would be that the money can't be witdrawn in the middle of the term. This is added to a reinvestment risk. Mutual funds are a good idea, but that should be preceded by some careful number crunching.

Mutual fund investments are subject to market risks. Also, there is little guarantee that a fund which has a consistent track record of performing, may not underperform in the coming years. The expense ratio for the fund also needs to be calculated.

DO NOT invest and forget, you need to rebalance:
There are two things you need to figure out while planning for retirement, feels Jhaveri. After retirement, you need to withdraw a certain amount of money, say, every month, for your expenses. This withdrawal amount will deplete your corpus. And secondly, you would need money for emergency or unplanned expenses. This can only be achieved by rebalancing your portfolio from time to time. So don't make investments and bury the papers. Monitor them from time to time.

The trick, Jhaveri says, is to devise a professionally counselled and well-managed asset allocation portfolio, in which the return from investment of the portion of corpus will compensate for the withdrawal amount. Typically, for a 25 to 45-year age band, the accent should be on equity investment.

The amount to be invested in equity should necessarily be determined by the risk appetite of the individual.

Typically, for a post-45 professional, the most immediate need is payoff of debt. This is the time to move more of the investments to debt. Besides, in the 45 to 60-year age band, income level is typically high. By the time you are 55, you should be clear of debt.

DO NOT forget to own your own mediclaim:
"Your personal health is your personal concern, do not leave it to the company!" says Narain. Even if the company is taking care of all post-retirement medical benefits through medicare or mediclaim, you need to meet the expenses up-front first. That would require initial investment, and in case of a complex operation and convalescence period, the bill may run into lakhs. And you need to pay that out before you get out of the hospital and face the company with the reimbursement form.

Benchmarking your company's health benefits against a mediclaim scheme in the market is imperative, experts agree. In most companies, healthcare benefits exclude many diseases, and different kinds of post-hospitalisation care. This is not the case with mediclaim policies, which cover hospitalisation and convalescence cover. Company benefits could also exclude certain kinds of cover for dependents, as well as the ceiling for the cost to be covered by the company.

You should also check carefully as to what happens to dependent covers once in your absence. If there are holes in the cover, you need to supplement it with healthcare policies available in the market. You may not get individual mediclaim once you retire. Do not wait for retirement to buy your individual mediclaim.

DO NOT use your savings as a source of ready cash:
Many of us do cling to life insurance and bank fixed deposits and savings accounts as a way of saving up on monthly terms. Unfortunately, due to the unregulated nature of bank accounts, it is easy to withdraw money from there to meet small fancies like buying that sofa, or the discman.

It is equally tempting to withdraw from your provident fund money to meet credit that might have built up through dalliances on your part.

DO NOT take all your PF and gratuity as ready money while switching jobs:
"In today's world of changing jobs, a PF-cum-gratuity cheque from your old employer is a one-time bonanza. Enjoy it, as in treat your wife to dinner! But afterwards, consult a professional and invest it for the long term. Taxation and risk are important," Narain says.

It is tempting to cash your stint at your last job, since staying for about say, five years, will give you quite a neat bit of savings. Employers and employees are to make mandatory equal contributions between 20% to 24% of basic salary towards Employee's provident fund benefits. Therefore, if the monthly cost to company is Rs 20,000 for which the basic will be around Rs 8,000, the total amount released by the company at the end of five years could be close to Rs 115,200 exclusive of interest at 8.5%.

That is quite a neat sum to blow away on all that fancy gadgetry. The obvious mistake you are making here, is that the money is your own hard-earned savings for the past five years, on which there is also an interest paid to you.

Well, if the above sounds like it requires a lot of discipline then you're right, it does. But remember, your well-being and lifestyle depends on creation of wealth. After all, if you've lived your life king size, surely you don't want to retire a pauper. The fall from BMW's to bullock carts is harder than you think!

E- Payment of Taxes made mandatory

The optional scheme of electronic payment of taxes for income-tax payers was introduced in 2004. With a view to expand the scope of electronic payment of taxes, it is proposed to make the scheme mandatory for the following categories of tax-payers:-

(i) All corporate assesses;

(ii) All assesses (other than company) to whom provisions of section 44AB of the Income Tax Act are applicable.

2. The scheme of mandatory electronic payment of taxes for income-tax payers is proposed to be made applicable from 1st April, 2008.

3. Tax-payers can make electronic payment of taxes through the internet banking facility offered by the authorized banks. They will also be provided with an option to make electronic payment of taxes through internet by way of credit or debit cards.

What is e-TBAF

1. What is e-TBAF?
Ans. In the Government Accounting System, each DDO (Drawing & Disbursement Officer) is associated with a specific Accounts Officer (AO), who processes the bills prepared by the DDO. TDS/TCS Book Adjustment Form (e-TBAF) is a single quarterly statement where the AO will consolidate the payment details from each of the DDO, for each month, for each type of deduction/collection (TDS-Salary/ TDS-Non Salary/ TDS- Non Salary Non Residents/ TCS) separately.

2. What is the periodicity of filing e-TBAF?
Ans. Every AO is required to file e-TBAF for every quarter for every type of deduction/ collection i.e. TDS-Salary / TDS Non-Salary / TDS-Non Salary Non-Residents / TCS

3. Who is required to file e-TBAF?
Ans. Every Accounts Officer (AO) who processes the bills prepared by the DDO has to furnish the quarterly e-TBAF.

4. What is AIN?
Ans. Accounts Officer Identification Number (AIN) is a seven digit unique identification number issued by the Directorate of Income Tax (Systems), Delhi, to each Accounts Officer (AO). It is mandatory for an AO to have an AIN for submitting the e-TBAF.

5. How to obtain AIN?
Ans. In order to obtain AIN, an AO is required to send his details together with the details of the DDOs associated with him to the ‘Directorate of Income Tax (Systems), at ARA Centre, Ground Floor, E-2, Jhandewalan Extension, New Delhi-110055. This information is required to be sent as per Annexure III to the e-TBAF manual.

6. How intimation of AIN allotment will be given to the Accounts Officer?
Ans. Income Tax Department will send a letter to the Accounts Officer, giving details of AIN allotted to him.

7. Is it mandatory to file e-TBAF in electronic format?
Ans. Yes, it is mandatory for every Accounts Officer to file e-TBAF in electronic format only.

8. In case of change in the details of DDOs associated to the AO, to whom and how will the same be communicated?
Ans. Any change in the details of DDOs associated to the AO shall be communicated by the AO to DIT (Systems) in the format as per Annexure IV of the e-TBAF manual.

All you need to know regarding e-TDS/TCS Return

What is annual e-TDS/TCS Return?
Ans. Annual e-TDS/TCS return is the TDS return under section 206 of the Income Tax Act (prepared in Form Nos. 24, 26 or 27) or TCS return under section 206C of the Income Tax Act (prepared in Form No. 27E), which is prepared in electronic media as per prescribed data structure. Such returns furnished in a CD/floppy should be accompanied by a signed verification in Form No. 27A in case of Annual TDS returns or Form No. 27B in case of Annual TCS return.

What is quarterly e-TDS/TCS statement?
Ans. TDS/TCS returns filed in electronic form as per section 200(3)/206C, as amended by Finance Act, 2005, are quarterly TDS/TCS statements. As per the Income Tax Act, these quarterly statements are required to be furnished from FY 2005-06 onwards. The forms used for quarterly e-TDS statements are Form Nos. 24Q, 26Q and 27Q and for quarterly e-TCS statement is Form No. 27EQ. These statements filed in CD/floppy should be accompanied by a signed verification in Form No. 27A in case of both e-TDS/TCS statements.

Who is required to file e-TDS/TCS return?
Ans. As per Income Tax Act, 1961, all corporate and government deductors/collectors are compulsorily required to file their TDS/TCS returns on electronic media (i.e. e-TDS/TCS returns). However, deductors/collectors other than corporate/government can file either in physical or in electronic form.

e-TDS/TCS returns have been made mandatory for Government deductors. How do I know whether I am a Government deductor or not?
Ans. All Drawing and Disbursing Officers of Central and State Governments come under the category of Government deductors.

Under what provision should e-TDS/TCS returns be filed?
Ans. An e-TDS return should be filed under Section 206 of the Income Tax Act in accordance with the scheme dated August 26, 2003 for electronic filing of TDS return notified by the Central Board of Direct Taxes (CBDT) for this purpose. CBDT Circular No. 8 dated September 19, 2003 may also be referred.
An e-TCS return should be filed under Section 206C of the Income Tax Act in accordance with the scheme dated March 30, 2005 for electronic filing of TCS return notified by the CBDT for this purpose.
As per section 200(3)/206C, as amended by Finance Act 2005, deductors/collectors are required to file quarterly TDS/TCS statements from FY 2005-06 onwards.

Who is the e-Filing Administrator?
Ans. CBDT has appointed the Director General of Income Tax (Systems) as e-Filing Administrator for the purpose of electronic filing of TDS/TCS returns.

Who is an e-TDS/TCS Intermediary?
Ans. CBDT has appointed National Securities Depository Limited, (NSDL), Mumbai, as e-TDS/TCS Intermediary. NSDL has established TIN Facilitation Centres (TIN-FCs) across the country to facilitate deductors/collectors file their e-TDS/TCS returns.

FAQ for refund banker

1. From which date the pilot phase for refund banker has been implemented?
Ans. Pilot phase for refund banker has been implemented from January 24, 2007 .

2. In which cities the pilot phase of refund banker has been implemented?
Ans. The pilot phase of refund banker facility is operational for taxpayers assessed in specific charges in Delhi, Patna, Bangalore, Chennai, Mumbai and Kolkata .

3. Are all the taxpayers in the cities where pilot has been implemented being covered under refund banker scheme?
Ans. Yes. All taxpayers (excluding corporate and exemption charge) of the six cities i.e. Delhi, Patna, Bangalore, Chennai, Mumbai and Kolkata are covered under the scheme.

4. Who will send the refund to me?
Ans. The State Bank of India (SBI) is the refund banker to the Income Tax Department (ITD). The Cash Management Product department of SBI (CMP SBI) processes the refunds under the refund banker scheme. Details of refunds are forwarded to CMP SBI by the ITD. CMP SBI processes the refunds and sends the refund intimation to the taxpayer.

5. How will the refund be sent to me?
Ans. There are two modes of refund; i.e. ECS and paper. If the taxpayer has selected mode of refund as ECS (direct credit in the bank account of the taxpayer) at the time of submission of income return and provided the correct account number along with the MICR code, the refund will be effected through ECS by CMP SBI. A physical advice of refund credited will also be sent to the taxpayer by post. From May 2008 refund is also effected by National Electronic Fund Transfer (NEFT).

For taxpayers who have not opted for ECS, refund will be disbursed by cheque or demand draft. The refund instrument will be dispatched by speed post by CMP SBI at the postal address mentioned in the income return.

6. How can I know the status of my refund?
Ans. : The taxpayer can track the status of its refund from the NSDL-TIN website www.tin-nsdl.com by clicking on “Status of Tax Refunds”.

Refund status can be tracked by entering the PAN and Assessment Year for which refund is to be tracked.

Status of the refund can also be tracked by contacting the help desk of SBI at 080-26599760.

7. If I have shifted my residence whom should I contact for updating my correspondence address for receipt of refund?
Ans. : The tax payer should contact its Assessing Officer and inform about the change in the correspondence address.

8. If my bank account has been closed how will I get refund credit into the account?
Ans. In case of change or updation in the bank account number the taxpayer should provide the correct account number along with the MICR code where credit is to be effected to the Assessing Officer.

9. I have received the physical ECS refund advice but my account has not been credited. Whom do I contact?
Ans. In case credit is not effected in the taxpayer account through ECS but the refund advice has been received by the taxpayer the tax payer should contact the Assessing Officer and provide the correct account number and MICR code where credit is to be effected. The Assessing Officer will inform SBI to send a fresh refund cheque to the taxpayer.

10. If the date of encashing the refund cheque expires, whom should I contact?
Ans. The tax payer should contact their Assessing Officer as well as CMP SBI at the below address:
Cash Management Product (CMP)
State Bank of India
SBIFAST
31, Mahal Industrial Estate
Off Mahakali Caves Road
Andheri (East)
Mumbai - 400 093.
Phone Number: +91-22-2687 4800

11. How do I rectify any mistakes in the name, assessment year, PAN, account number printed on the refund cheque delivered to me?
Ans. In case of any mistakes on the refund cheque delivered to you, the following should be done:
i) Send the original refund cheque to CMP, State Bank of India at SBIFAST 31, Mahal Industrial Estate, Off Mahakali Caves Road, Andheri East, Mumbai - 400 093, Phone Number: +91-22-2687 4800, along with a letter informing the mistakes on the refund cheque.
ii) Send a copy of the letter along with a copy of the refund cheque to your Assessing Officer.
iii) Retain a copy of the letter and refund cheque with you.

12. If somebody else’s refund cheque / advice is delivered to me what should I do?
Ans. You should contact SBI at the following address and return the refund cheque / advice.
Cash Management Product
State Bank of India
SBIFAST
31, Mahal Industrial Estate,
Off Mahakali Caves Road,
Andheri (East)
Mumbai – 400 093
Phone Number: +91-22-2687 4800

13. When will the next phase of refund banker commence and how many cities will be covered in that phase?
Ans. The Income Tax Department will inform the same shortly.

14. Is there any method available to know whether the refund record has been generated for the taxpayer?
Ans. : The taxpayer can track the status of its refund from the NSDL-TIN website www.tin-nsdl.com by clicking on “Status of Tax Refunds”.

Refund status can be tracked by entering the PAN and Assessment Year for which refund is to be tracked.

Status of the refund can also be tracked by contacting the help desk of SBI at 080-26599760.

REFUND STATUS

The refund banker pilot scheme has commenced from 24th Jan 2007. It is now operational for taxpayers assessed in Delhi in salary charges i.e. CIT XIV, XV,XVI and one business charge i.e. CIT IX. It is also operational in Patna for CIT I, II and Central. From September 30, 2007 the pilot has been extended in few other stations i.e. Bangalore, Chennai, Delhi, Kolkata, Mumbai (except for company and exemption refunds).

In the pilot scheme all Income tax Returns will be processed by Assessing officers. ITOs, Asst. Deputy Commissioners, Commissioners. The refunds (by ECS or paper cheques)will be sent by CMP branch of SBI.

Taxpayers will get status of refund 10 days after the refund has been sent by their Assessing Officer for refund banker. Status will be available only for those taxpayers whose refunds are to go through refund banker pilot scheme.

Please enter your Permanent Account Number and Assessment Year for which status of refund is to be tracked.

TRACK YOUR REFUND IN INDIA HERE