The Union Cabinet has sanctioned Rs 4,241.97 crore to implement the next generation system for processing online income tax returns, reports The Indian Express.

This new system would bring down the returns processing time to just one day, which also reduce the time taken to release refunds. IT major Infosys will implement the project.

"Prime Minister Narendra Modi headed cabinet has sanctioned 4,241.97 crores for Integrated E-filing and Centralised Processing Centre 2.0 Project of the Income Tax Department chaired cabinet, ” Union Minister Piyush Goyal was quoted as saying.

The processing time for ITR is 63 days, and it will come down to one day after implementation of the project, said Goyal. The project is expected to be done in 18 months and will be put into use after prompt testing. The new project would be more tax friendly, he said.

Goyal also informed that tax refunds worth Rs 1.83 lakh crore have been released so far in the current fiscal.

The system will bring more transparency in the process and end taxpayers’ interface with the Income Tax Department. Infosys is likely to complete the project in 18 months and implement it after three months of testing, claims the report.

The Centralised Processing Centre (CPC) projects have enabled an end-to-end automation of all operations of the Income Tax Department using innovative methods to provide taxpayer service and to promote voluntary compliance.