CBDT has refunded Rs. 71,229 crore so far to help taxpayers during COVID-19 pandemic: In a press release dated 17.07.2020, the Ministry of Finance has stated that the Income Tax Department has refunded Rs. 71,229 crore to more than 21.24 lakh taxpayers amid COVID-19 pandemic up to July 11, 2020, since the Government’s decision of 8th April 2020 to issue pending income tax refunds at the earliest.
Earlier, vide a press release dated 03.07.2020, the Government informed that the Income Tax Department had refunded Rs. 62,361 crore to more than 20 lakh taxpayers amid COVID-19 pandemic from April 8, 2020 to June 30, 2020.
The press note refers to Government’s decision releases via a press note dated 8th April according to which all pending income tax refunds up to Rs 5 lakh to be issued immediately with a view to providing immediate relief to the business entities and individuals amid COVID-19 outbreak.
The press release does not mention the announcement by Finance Minister Smt. Nirmala Sitaraman on 13th May while announcing the First Tranche Special Economic Package and Measures for Relief amid COVID-19 to that the pending income tax refunds to charitable trusts and non-corporate businesses and professions including proprietorship, partnership and LLPs and cooperatives shall be issued immediately.
Income tax refunds amounting to Rs. 24,603 crore have been issued in 19.79 lakh cases to taxpayers and corporate tax refunds amounting to Rs. 46,626 crore in 1.45 lakh cases has been issued to taxpayers during this period.
The press note further states that all the refund-related cleaning up of the tax demands are being taken up on priority and is likely to be completed by 31st August 2020. Also, all applications for rectifications and for giving effect to appeal orders are to be uploaded on the ITBA. It has been decided to do all the work of rectification and appeal effect on ITBA only.
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In February 2019, the Income Tax department had announced that effective 1st March 2019 all the income-tax refund will be made in e-mode only. That is income-tax refund will not be made in cheques and will be directly credited to the assessee’s bank account. For this purpose, linking bank accounts with the PAN of the assessee was made mandatory and failing which no refund will be made to the assessee.
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Hence, paper refund - refund by cheques, by draft has been restricted by the income tax department. Only in exceptional circumstances, paper refund or refund by cheques will be issued and that too after due approval, as instructed by the CBDT in this regard.
CBDT reiterated that taxpayers should provide an immediate response to emails of the Department so that refunds in their cases too could be processed and issued right away. Such emails of I-T Department seek taxpayers to confirm their outstanding demand, their bank account number and reconciliation of defect/mismatch prior to the issue of refund. In all such cases, quick responses from the taxpayers would enable the I-T Department to process their refunds expeditiously.
Read the full text of the press release dated 17.07.2020 on income tax refund
Government of India
Department of Revenue
Ministry of Finance
Central Board of Direct Taxes
New Delhi, 17th July, 2020
PRESS RELEASE
CBDT has refunded Rs. 71,229 crore so far to help taxpayers during COVID-19 days
The Central Board of Direct Taxes (CBDT) has issued refunds worth Rs 71,229 crore in more than 21.24 lakh cases upto 11th July, 2020, to help taxpayers with liquidity during COVID-19 pandemic days, since the Government’s decision of 8th April, 2020 to issue pending income tax refunds at the earliest.
Income tax refunds amounting to Rs. 24,603 crore have been issued in 19.79 lakh cases to taxpayers and corporate tax refunds amounting to Rs. 46,626 crore in 1.45 lakh cases have been issued to taxpayers during COVID-19 days.
It is stated that the government has laid great emphasis on providing tax related services to the taxpayers without any hassles and is aware that during these difficult times of COVID-19 pandemic, many of the taxpayers are waiting to see that their tax demands and refunds reach finality as quickly as possible.
It is further emphasized that all the refund related cleaning up of the tax demands are being taken up on priority and is likely to be completed by 31st August, 2020. Also, all applications for rectifications and for giving effect to appeal orders are to be uploaded on the ITBA. It has been decided to do all the work of rectification and appeal effect on ITBA only.
It is reiterated that taxpayers, for quick processing of their refunds, should provide immediate response to the emails of I-T Department. A quick response from the taxpayer in this regard would facilitate the I-T Department to process their refunds expeditiously. Many taxpayers have submitted their responses electronically for rectification, appeal effects or tax credits. These are being attended to in a time bound manner. All refunds have been issued online and directly into the bank accounts of the taxpayers.
(Surabhi Ahluwalia)
Commissioner of Income Tax
(Media & Technical Policy)
Official Spokesperson,
CBDT
Download copy of the CBDT’s Press Note dated 17.07.2020 on income tax refund in pdf format.
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