The government has decided to issue all the pending income tax refunds up to Rs 5 lakh, immediately as part of its efforts to provide relief to the business entities and individuals hit by the coronavirus pandemic.
It has also decided to issue all pending GST and custom refunds that would provide benefit to around 1 lakh business entities, including MSMEs.
The Finance Ministry has instructed the Income Tax Department to process refund applications of taxpayers quickly so that money could be deposited into their accounts as soon as possible. The move would benefit around 14 lakh taxpayers.
In the case of GST and customs, the total refund granted will be approximately Rs. 18,000 crore.
"This will come as massive relief to 1.5 million taxpayers waiting in line for a tax refund. In this difficult period, many would be able to utilise this money for their day-to-day expenses," Rajat Mohan, Senior Partner, AMRG & ASSOCIATES said.
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