Paying very heavy amount as Income Tax? Relief for you may come soon
On April 8, the Modi government had announced that it has directed the Income-Tax department to clear all pending income tax refunds up to Rs 5 lakh immediately to benefit around 14 lakh taxpayers. Now, after providing relief to smaller taxpayers hit by the coronavirus pandemic, the government may extend the benefit of accelerated tax refunds to large taxpayers and companies that are equally looking at fiscal incentives from the government to have enough liquidity to survive the present crisis.
According to a report in news agency IANS, now taxpayers who have refunds in excess of Rs 5 lakh may also be provided relief and the process could be initiated this week.
Recently, government has decided to issue all pending GST and Customs refunds to provide relief to around 1 lakh business entities. The total refund to be granted under the scheme was estimated at around Rs 18,000 crore.
In pursuance to the government’s decision to issue pending income tax refunds up to Rs 5 lakh in order to help taxpayers amid the Covid-19 pandemic situation, the Central Board of Direct taxes (CBDT) on April 15 said that it has already issued over 10.2 lakh refunds totalling to around Rs 4,250 crore as on April 14, 2020. These refunds are over and above the 2.50 crore refunds already issued in FY 19-20 till March 31, totalling to Rs 1.84 lakh crore.
The CBDT further said that about 1.75 lakh more refunds are in the process of issuance in this week. These refunds would get credited directly to the taxpayers’ bank accounts in 5-7 business days from the date of issuance.