Govt to give income tax refunds up to Rs 5 lakh immediately due to coronavirus impact
All pending income tax refunds up to Rs 5 lakh will be issued immediately to individuals and business entities.
The decision will come as relief for individuals who are facing cash crunch due to pay cuts or job loss or waiting for their salaries or wages to be released by their employers.
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."
In context of COVID-19 situation & to grant immediate relief to taxpayers, GOI has decided to issue all pending inc… https://t.co/Nvit6i1S0a— Income Tax India (@IncomeTaxIndia) 1586349593000
The income tax refund issued by the department will help people get their money which is stuck with the department. 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 claim made by an individual via his/her tax return matches with that of tax-department's calculations. 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.
Remember your bank account must be validated on the income tax e-filing website to receive the credit of ITR refund in your bank account.