The government unveiled a raft of measures to ensure availability of cash in the system, including speeding up of refunds worth Rs 18,000 crore linked to income tax returns, customs, and GST, while deciding to prioritize spending on areas like health, pharma, food, rural development, railways, and aviation. The decision has come due to the coronavirus lockdown in the country. In the wake of Coronavirus lockdown affecting normal life both socially and financially of the public, it was ordered the immediate clearance of pending income Tax refund cases where the claim amount is up to Rs 5 lakh. The Ministry of Finance issued a notification in this regard citing the move will be a great relief for around 14 lakh income taxpayers. The notification also announced to clear pending cases related to GST refund and customs refund of the MSMEs.
The decision will come as a relief for individuals who are facing a cash crunch due to pay cuts or job loss or waiting for their salaries or wages to be released by their employers.
The income tax refund issued by the department will help people get their money which is stuck with the department. A 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 liability.
To get the excess tax as a refund, an individual is required to file the 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 the tax department's calculations. The refund will be credited to his/her bank account (as opted while filing a tax return) once the tax department has processed the tax return.
Further, the bank account must be validated on the income tax e-filing website to receive the credit of the ITR refund in your bank account.
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