Here comes a sigh of relief amidst this outbreak for the individuals who are facing liquidity issues due to pay cuts or waiting for their salaries to be credited in account for the past month.
The Income Tax Department has tweeted today dated 8th April 2020,on its official Twitter handle, that it will issue all pending income tax refunds up to Rs 5 lakh immediately to individuals and business entities. The decision has come in due to the coronavirus lockdown in the country. According to press note of the department, this decision would benefit around 14 lakh taxpayers as well as 100,000 businesses and total amount which will be refunded will be around Rs.18000 Crore.
According to the announcement made, “In context of COVID-19 situation and to grant immediate relief to taxpayers, GOI has decided to issue all pending income tax refunds up to Rs 5 lakh & GST custom refunds with immediate effect.”
The income tax refund issued by the department will help people get their money which is stuck with the department for long. An income tax refund is due to an individual when the tax deducted from an individual’s income in a particular financial year is higher than his/her total income tax liability.
To get the excess tax as refund, an individual is required to file income tax return. The refund is given if in a financial year total income claimed by an individual via his/her tax return matches with the calculations of the department. The refund will be credited to his/her bank account (as opted while filing tax return) once the tax department has processed the tax return.