Faster tax refunds, tax demand notice deletion, and more can now be expected as I-T dept updates the ITR portal for online ‘order giving effect’ applications

Won case against income tax department but still waiting for benefit? No more delay after an update in ITR portal

Now you can expect faster benefits from a favourable order following the judgement in an income tax case. An update to the e-filing ITR portal on February 6, 2025, made this possible. The e-filing ITR portal will now allow the online filing of order giving effect (OGE) requests.

The term ‘order giving effect’ refers to the execution of any specific judgement order, essentially meaning the implementation of that order. For instance, if the judgement states the income tax department should issue you a tax refund but the I-T department takes time, then the order remains unexecuted; it is only upon receiving the refund that the order is considered executed. The judgement order only takes effect when you receive the tax refund in your bank account.

Without the enforcement of an order, a judgement order is nothing but a piece of paper that says you have won the case but with no real-life benefit. It’s as if you have crossed the finish line in the first place but have not received the reward.

Read below to learn how to use this option and how it has now saved you from major hassles previously encountered by others:

How does this new update to the ITR portal save taxpayers from the earlier hassle?

Earlier, winning a case against the income tax department was not enough to get the order executed. Experts say prior to this update; taxpayers had to physically meet the income tax assessing officer and submit a request to give effect to the favourable order.

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Comptroller and Auditor General of India (CAG), in its report dated November 26, 2024, said, “The audit observed delays of up to seven years in giving effect to appeal orders passed by different appellate authorities, with one case still awaiting orders for over 11 years. Delays in passing consequential orders resulted in excess outstanding demand on records; the non-levy of interest under section 220(2) for the delay in paying tax demand resulted in the underreporting of outstanding demand.”

CAG also observed that there was a discrepancy in the amount of tax demands existing in the e-filing ITR portal as well as the physical records and Income Tax Business Application (ITBA) systems.

With the new update, taxpayers will get much-needed relief regarding time. According to Chartered Accountant Prakash Hegde, “Earlier this process of getting effect for a favourable order was manual. We had to personally meet the jurisdictional assessing officer, submit a photocopy of the order, and request him/her to give effect to the favourable order passed by ITAT or courts or NFAC. Now this has been replaced with an update to the ITR portal, making it online. For getting the order giving effect, it used to take me somewhere around three weeks to a year, depending on the order and the office.”

Chartered Accountant Mayank Mohanka hopes that the development might end taxpayers’ troubles: “Giving appeal effect means deleting the tax demand, issuing tax refunds, dropping the penal interest and charges, etc. But for doing this work, jurisdictional AOs used to take their own time in processing such a request. In my case, the average time to give effect to a favourable order has been four to five months; that too after repeated and consistent follow-ups. It is hoped that now this online functionality for applying for appeal in effect requests for favourable order works in an automated mode and gives relief to taxpayers.”

Order Giving EffectSource: Income Tax e-filing ITR portal

Further, even if the tax authorities want to file an appeal against the favourable order received by the taxpayer, they must give effect to the favourable order. “So, these two things run parallel to each other,” says Hegde.

How to use the order giving effect online feature on the e-filing ITR portal

Here’s a step-by-step guide on how to use the ‘order giving effect’ feature available on the e-filing ITR portal:

Step 1: Go to the e-filing ITR portal and log in using your credentials. Now click on the ‘Services’ tab and then click on the ‘Request for Order Giving Effect’ button.

Order Giving Effect (OGE)Source: Income Tax e-filing ITR portal

Step 2: A new webpage will open, and it will have a button titled ‘New Request’; click on that. A new webpage will open, and it will have four options. You need to click on each of the options and select the appropriate action; after selecting, click on ‘Continue’.

Order Giving Effect Step 2Source: Income Tax e-filing ITR portal

Step 3: Select the order and click on ‘Continue’. Your request will be sent to the assessing authority for further action.

Order Giving Effect (OGE) step 3Source: CA Prakash Hegde

This story originally appeared on: India Times - Author:Faqs of Insurances