The Income Tax department has issued refunds worth Rs 62,361 crore between April and June and to more than 20 lakh cases. Of this, corporate tax refunds amounted to Rs 38,908 crore. The exercise was undertaken electronically, an official statement said, adding that the refunds will provide the much required liquidity in this time of crisis induced by the coronavirus pandemic.
Analysts have been underscoring the need to release all pending dues to address liquidity issues that have arisen in the wake of the coronavirus pandemic.
The release of money would also boost demand. Nirupama Soundararajan, senior fellow & head of research, Pahle India Foundation said that providing cash in the hands of the consumer and increase in incomes would boost demand.
“The first thing the government needs to do is to ensure that all government dues to all stakeholders. These could be tax refunds or payments that are due,” Soundararajan said.
The Central Board of Direct Taxes (CBDT) urged taxpayers to provide immediate details and response to emails from the department so that refunds, if any in other cases, too can be processed at the earliest.
“Unlike what used to happen some years ago, in these refund cases, no taxpayer had to approach the Department to request for release of refund. They got refunds directly into their bank accounts,” the CBDT said.
“Such emails of IT department seek taxpayers to confirm their outstanding demand, their bank account number and reconciliation of defect/mismatch prior to issue of refund. In all such cases, quick responses from the taxpayers would enable the income tax (IT) department to process their refunds expeditiously,” the statement said, adding that government has issued tax refunds at a speed of 76 cases per minute between April 8 and June 30.
The tax department has been trying to speed up the refund issuance process for the last few years..