The income tax (I-T) department has issued refunds worth Rs 26,000 crore to around 1.7 million taxpayers since the beginning of this fiscal year. This is to improve cash flow of firms and individuals amid the lockdown due to the coronavirus (Covid-19) pandemic.
Expediting refunds of up to Rs 5 lakh was announced as part of the government’s policy initiative to tackle the economic impact of Covid.
“The Central Board of Direct Taxes (CBDT) has issued tax refunds worth Rs 26,242 crore to about 1.68 million assessees from April 1 to May 21, 2020,” said the official statement released on Friday.
I-T refunds amounting to Rs 14,632 crore have been issued to around 1.58 million individual assessees and corporate tax refunds amounting to Rs 11,610 crore have been given to 1,02,392 assessees during this period. However, a few tax consultants noted that in some cases, these refunds have been adjusted against outstanding tax demand for other years even if the dispute was pending before higher appellate authorities.
"Further, refunds are not being issued in cases where scrutiny of assessment is pending. It will indeed be a welcome step if the refunds are issued in all cases," said a tax consultant, on condition of anonymity.