FINANCE MINISTRY ANNOUNCES IMMEDIATE INCOME TAX REFUND OF RS. 5 LAKH
Due to COVID-19, MOF has decided to issue all pending Income Tax Refunds up to Rs 5 lakh to Grant Immediate relief to Taxpayers
At the time when entire world and humanity is facing an unprecedented emergency due to the existing COVID-19 pandemic, every single sector which contributes to the economy of India is also under severe stress.
The common mass, especially middle class people who don’t get any financial aid was expecting some sigh of relief from the Government of India. Not disappointing them, Finance Ministry on Wednesday dated 08th April, 2020, has issued a press note stating "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."
What the Announcement Says?
The Ministry has decided to issue an immediate Income Tax Refund which amounts upto Rs. 5 lakhs. This step of Income Tax Refund will be benefitting 14 lakh Taxpayers. The Ministry via its note dated 08th April, 2020, has also directed to issue all the pending refunds of GST and Customs. This refund of GST and customs will provide benefit to around 1 lakh entities including MSME. Hence, the total amount of this refund is supposed to be around Rs. 18,000 crores approximately.
This benefit of refund of income tax will help the individual who are facing the monetary problems in this lockdown period. The individuals are not only facing monetary issues but also facing the problem of job cut or waiting for their salaries.
What is Income Tax Refund?
An income tax refund is due to an individual when the tax is deducted from an individual's income in a particular financial year is more than his/her total income tax liability.
In order to get the tax refund, an income tax return has to be filed by an individual. The refund will be credited to their bank account once the tax return has been processed by the tax department.
Other Reliefs Provided by the Government
- In providing a series of relief last month, Finance Minister had announced a package of Rs. 1.7 Lakh crore which was mainly targeting the weaker sections of the society. The government had also assured that it will be providing free cylinders of LPG to the Ujjwala scheme beneficiaries.
- The ministry has also announced a medical insurance package of Rs. 50 Lakhs for Corona warriors, which will be available for 3 months till June 30, 2020. This will include the healthcare service providers who are the first line fighters in the battle against this COVID-19 pandemic. This move is supposed to benefit 22 Lakh health care providers.
- The Government has extended the deadline for filing of Belated/Revised Income Tax Returns for Financial year 2018-19. Now the filing of Income Tax Returns can be done till June 30, 2020 instead of March 31, 2020.
- The Government has reduced the interest rate for delayed income tax.
- The deadline for linking Aadhaar and PAN card has been extended to June 30,2020 from March 31, 2020.
Gist of Above
The government is taking every single step in order to provide benefit and relief to all the entities and individuals in the scenario of ongoing pandemic. We can say that this relief given by the Government of India by providing immediate refund of Taxes will definitely help to deal with the monetary issues one is facing at this hard times.