Intensive checks after thieves hack into IT server

NEW DELHI - All high value income tax refunds will go through intensive checks and its software system will be revamped, after its account was hacked and Rs.11 crore was siphoned off, the government said Monday.

At least Rs.11 crore of refunds were discovered to have been stolen last week by hacking into the password of some assessing officers who are responsible for crediting the refunds. The refunds were credited to fake accounts for which the returns had been filed electronically.

We have stopped the payment and have been able to prevent at least two cases. Also investigation and action has been initiated by the Directorate of Income Tax (Investigation), Mumbai to detect the bank accounts to which the refunds had been credited and the beneficiaries, the finance ministry said.

All high value refunds issued during the current financial year will be checked again. The system of handling high value refunds will be replaced with a more robust and foolproof system, the finance ministry said.

Income tax refunds could get delayed, said an official.

Refunds in 2009-10 have doubled from the last year at Rs.12,421 crore as many refunds were deferred. It was Rs 6,899 crore the previous fiscal.

The investigators have identified the bank accounts, beneficiaries and some of

those involved in the scam, the finance ministry claimed.

Central Bureau of Investigation and the Mumbai police are looking for the beneficiaries.