In a notification the Income Tax Department said it would release all pending income tax refunds up to Rs 5 lakh immediately, in a move that will benefit around 14 lakh taxpayers.
The government will also issue pending GST and customs refunds of Rs 18,000 crore to provide relief to business entities.
The decision has been taken in the aftermath of the COVID-19 situation and with a view to provide immediate relief to the business entities and individuals, said a statement from the department.
It has also been decided to issue all pending GST and Custom refunds which would provide benefit to around 1 lakh business entities, including MSMEs.
There have been about 150 deaths in India due to COVID-19 pandemic and over 5,000 positive cases.
Secretary, PCAIT, Saket Kapoor, said: “This announcement has come in lines with the suggestion of PCAIT. In a letter to the honourable Prime Minister of India, Mr. Narendra Modi, PCAIT had suggested immediate issuance of directive from Government of India to both direct and indirect Tax departments to refund to small business entities long pending Income Tax and GST, with the intent to ease the small business cash flows.”
As per Alok Gupta, President, PCAIT, added, “This is a prudent move by the government to support the small businesses, which are under tremendous pressure due to the Pandemic.”