CBDT issues 10.2 lakh Income Tax Refunds of Rs. 4,250 Crore
In pursuance to the Government’s decision vide press Note dated April 8th 2020 to issue pending income tax refunds up to Rs. 5 lakh in order to help taxpayers in a COVID-19 pandemic situations, the Central Board of Direct taxes (CBDT) today said that it has already issued over 10.2 lakh refunds totaling to around Rs. 4,250 crore as on April 14th 2020.
These refunds are over and above the 2.50 crore refunds already issued in FY 19-20 till March 31st 2020 totaling to Rs. 1.84 lakh crore.
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 taxpayer bank account in 5-7 business days from issuance.
However, in around 1.74 lakh cases, email responses are awaited from taxpayers regarding reconciliation with their outstanding tax demand for which a reminder email has been sent asking them to respond within 7 days so that the refund can be processed accordingly.
It may be noted that these reminder emails from I-T department are in fact for the benefit of taxpayers as it seeks them to confirm their outstanding demand, their bank accounts and reconciliation of defect/mismatch prior to issue of refund.
CBDT appealed that it is in the interest of taxpayers to provide a response to such emails at the earliest so that refunds could be processed and issued at the earliest.
It has requested taxpayers to check their email and login to their e-filing account to respond to the I-T Department immediately. CBDT also said that it has noted in a few media, including social media, some questions are being raised with regards to CBDT’s computerized email to the taxpayers to respond within 7 days for enabling the department to process refund.
In this regards, it is clarified that these are the necessary routine process related communications to the taxpayers to seek response on defective ITRs, prima facie adjustments and where confirmation is sought about certain claims made by them. In all such cases, a quick response from the taxpayer would enable the I-T Department to process their refunds expeditiously.