SUMMARY
The move is expected to benefit around 14 Lakh taxpayers and 1 Lakh businesses
The total refund amount will be to the tune of INR 18K Cr, said the ministry of finance
When the tax deducted from income in a particular financial year is more than his/her total income tax liability, he/she is eligible for a refund
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In a major relief to around 14 Lakh taxpayers, the Income Tax Department has announced that it will issue all pending income tax refunds up to INR 5 Lakh immediately to individuals and business entities.
Many employees across different sectors have been losing jobs or are undergoing pay cuts. Some have also been waiting for the dispersal of their salaries. Under this situation, the decision has come as a welcoming one. The lockdown has also led to the shutting down of many small businesses. The refund will help them with some cash in hand to meet the fixed cost and also disperse salaries to staff.
“In context of COVID-19 situation and to grant immediate relief to taxpayers, GOI has decided to issue all pending income tax refunds up to INR 5 Lakh & GST custom refunds with immediate effect,” the IT department tweeted.
The press note shared by the ministry of finance also said that all pending GST and custom refunds will also be released, benefiting close to 1 Lakh businesses. The total refund amount will be to the tune of INR 18K Cr.
Commenting on the tweet, many lauded the decision as a step in the right direction. The immediate refunds basically ensure employees get their money stuck with the department as soon as possible in this time of need.
Many had also shared concerns about their ITR not being processed and requested refunds for the same. “Please also issue a refund for those whose ITR has still not been processed. ITR filed in June 2019 but still not processed. It has refund claim. Need quick processing and refund for self-employed like me !! @PMOIndia,” read a tweet.
However, many have also said that their returns were filed last year and while the status says it is e-verified, the refund hasn’t come in yet. Additionally, some also commented saying that partial refunds should be offered for higher amounts. This would especially help small businesses to manage cash flow in this crisis situation and reduce the pressure of having to support employees who may need financial assistance.
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