I-T dept to release all pending income tax refunds up to Rs 5 lakh, to benefit 14 lakh taxpayers

In an attempt to provide some relief to taxpayers during the nationwide lockdown, the Income Tax Department on Wednesday announced that it will release all pending income tax refunds up to Rs 5 lakh immediately. The move is said to benefit around 14 lakh taxpayers.

"In the context of the COVID-19 situation and with a view to providing immediate relief to the business entities and individuals, it has been decided to issue all the pending income-tax refunds up to Rs 5 lakh, immediately. This would benefit around 14 lakh taxpayers," read a statement by the Department of Revenue, Ministry of Finance.

The government will also issue pending GST and customs refunds of Rs 18,000 crore to provide relief to business entities.

"It has also been decided to issue all pending GST and Custom refunds which would provide benefit to around 1 lakh business entities, including MSME. Thus, the total refund granted will be approximately Rs. 18,000 crore," the statement further said.

Earlier this week, the Income Tax Department extended the deadline for individuals to submit forms 15G and 15H for the current fiscal by three months to claim exemption from Tax Deducted at Source (TDS) on interest income amid the COVID-19 crisis.

It said that in such a situation, some individuals may not be able to submit the forms timely and this will result in deduction of TDS even when there is no tax liability.