A) Income tax refunds up to₹5 lakh immediately.
The Income Tax Department, announced that it will issue all pending income tax refunds up to Rs 5 lakh immediately to individuals and business entities. The decision has come due to the coronavirus lockdown in the country. According to press note of the department, this decision would benefit around 14 lakh taxpayers. 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."
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.
B) Income Tax Department Allows More Time to File TDS Exemption
The Income Tax Department has allowed individuals to submit Form 15G and 15H for the current fiscal after June 30 for claiming exemption from Tax Deduction at Source on interest income to mitigate the hardship of people amid the Covid-19 crisis.
Forms 15G and 15H are filed by persons whose incomes are below the taxable threshold, to seek exemption from TDS on interest income.
These forms are usually submitted by taxpayers to banks and financial institutions in April. In an order, the Central Board of Direct Taxes said the 15G and 15H forms submitted last fiscal will remain valid till June 30, 2020, since the Covid-19 pandemic has caused severe disruption in the normal working of almost all sectors of the economy, including banks and other institutions.
To "mitigate the genuine hardship" of such persons, the CBDT said: "In case if a person has submitted valid Forms 15G and 15H to the banks or other institutions for FY 2019-20, then these form 15G and 15H will be valid up to June 30, 2020, for FY 2020-21 also." In a separate order, the CBDT said the assessees who have filed application for issue of certificate for lower rate/nil deduction/collection of TDS or Tax Collected at Source in 2019-20 fiscal to the I-T department will now have to intimate the Assessing Officer about the pendency of issue such a certificate via e-mail.
"The Assessing Officer shall dispose off the applications by April 27, 2020, and communicate to the applicant regarding the issuance/rejection of certificate vide email," the CBDT said.
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