CBDT issues over 10 lakh refunds worth Rs 4250 cr in a week

Central Board of Direct Taxes (CBDT) has issued over 10.2 lakh refunds worth Rs 4,250 crore in a week. These refunds have been disbursed as on April 14, 2020.

These refunds are over and above the 2.50 crore refunds already issued in 2019 -20 till March 31, 2020, totalling to Rs 1.84 lakh crore.

Last week, CBDT had said that it will issue pending income tax refunds up to Rs 5 lakh rupees to help taxpayers in a COVID-19 pandemic situation. CBDT further said that about 1.75 lakh more refunds are in the process of issuance this week. These refunds would get credited directly to the taxpayer bank account in 5 to 7 business days from issuance.

These refunds are in pursuance to a Ministry of Finance order dated April 8 to issue pending refunds up to Rs 5 lakhs as a COVID relief measure.

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. CBDT said 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 or mismatch before issuing of the refund.

CBDT has appealed that it is in the interest of taxpayers to respond to such emails at the earliest so that refunds could be processed and issued at the earliest.