Tax department will issue outstanding refunds up to Rs 5 lakh immediately, 14 lakh people and business units will benefit
- All pending GST and custom refunds will also be issued
- GST and custom refunds will benefit 1 lakh business units
The Income Tax Department will immediately issue a pending refund of up to Rs 5 lakh to provide relief to the people and businessmen facing financial crisis due to the ongoing lockdown across the country to prevent the spread of new coronavirus infection. About 14 lakh taxpayers will get the benefit of this. The government on Wednesday decided to immediately issue all income tax refunds up to Rs 5 lakh to all business entities and individuals. It has also been decided to issue all pending GST and custom refunds. This will benefit about 1 lakh business units, including MSMEs.
A total of Rs 18,000 crore will be released
According to a statement by the Finance Ministry on Wednesday, refunds worth a total of around Rs 18,000 crore will be issued in this way. Significantly, more than 5,000 people have been infected with Coronavirus so far throughout the country. As of Wednesday, 173 people have lost their lives due to this infection.
What is refund?
The company deducts the estimated portion of the tax from its salary and pays it to the government account in advance, while paying salaries to its employees throughout the year. Employees file income tax returns at the end of the year, in which they state how much they owe as taxes. If the actual liability is less than the amount of tax deducted earlier, the remaining amount is refunded to the employee.
What is the process for taking refunds?
The employee has to file a return after the end of the business year to get a refund. Employees have to state in return how much refund they are entitled to. If his claim is true, the tax department puts the refund amount directly into his account.