"It will be fully automatic. Tax refunds will be sent directly to bank accounts from June 2006," Darda said. The tax refunds would be sent through electronic clearing system to the respective bank accounts of the persons eligible for it.
The move assumes importance as many individuals face difficulty in getting tax refunds and have to wait for months.
The new refund system is part of CBDT's drive to reduce the interface between taxpayers and tax officials through streamlining of procedures.
Darda said the tax department faces difficulty in sending the refunds as many persons do not furnish their bank account number while filing their income tax returns.
"Unless the person validates whether refunds should be sent in the bank account and furnish the bank account number, we cannot sent the refunds in their bank accounts," he said.