Centre orders immediate release of IT refunds up to Rs 5 lakh
Citizens who are facing a shortage of funds due to job loss or pay cuts due to the ramifications of the nationwide lockdown can breathe a sigh of relief. As the country battles Coronavirus, the government has decided to provide a major relief for business entities and individuals.
The Centre on April 8 announced that it will release all pending income-tax refunds up to Rs 5 lakh immediately. As per a statement issued by the IT department under the Ministry of Finance, the decision has been taken to provide relief to 14 lakh (or even more) taxpayers amid the fight against COVID-19 in the country. The government has also decided to release all pending GST and Custom refunds in order to help over 1 lakh business entities, including the MSMEs(Micro, Small & Medium Enterprises). The statement states that the total refund issued by the government comes up to Rs 18,000 crore. This refund by the income tax department will help in the early release of their money stuck with the department.
An income tax refund takes place when taxes paid by the people in a particular financial year are higher than their total income tax liability (including the interest).
In order to claim the tax refund, the people have to file an income tax return. There is no separate structure to get the tax refund. In another relief, the Income Tax Department earlier this month also extended the deadline for the citizens to submit their forms 15G and 15H for the current fiscal by three months. The forms will help them claim exemption from Tax Deducted at Source (TDS) on interest income as the
Coronavirus outbreak paralyzes the normal functioning of the businesses and economy.
On April 8, the Ministry of Finance also asserted that due to the existing lockdown, the cash position of the government may be stressed in the June quarter of FY21. 1.3 billion population of India is currently under 21-day lockdown in order to stem the spread of the deadly COVID-19 virus.
While the lockdown is going to end on April 14, PM Modi and other states have hinted on extending the lockdown to tackle the pandemic. On April 9, the number of COVID-19 positive rose above 5,700 in India with over 160 deaths reported.