Many people have complained to the Finance Ministry regarding a delay in receiving refunds of their Income Tax returns.

Courses of action:

1. The Finance Ministry must institute an enquiry into the complaints received regarding delay in income tax refunds.
2. The Finance Ministry must compensate the income tax payees by paying interest on their refunds for the duration of the delay.

Question

Many people have complained to the Finance Ministry regarding a delay in receiving refunds of their Income Tax returns.

Courses of action:

1. The Finance Ministry must institute an enquiry into the complaints received regarding delay in income tax refunds.
2. The Finance Ministry must compensate the income tax payees by paying interest on their refunds for the duration of the delay.

Accepted Answer

**Solution:**

1. The statement mentions many complaints about delays in income tax refunds. It is logical and necessary for the Finance Ministry to institute an enquiry to identify the causes of delay and take corrective action. Hence, Course I follows.

2. Compensating taxpayers by paying interest on delayed refunds provides relief and discourages future delays. This is a reasonable and proactive measure. Hence, Course II also follows.

Since both courses of action are logical and appropriate responses to the problem stated, the correct choice is that both I and II follow.

**Answer:** Both I and II follow.

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