The income tax department had made a statement in April that this time income tax refunds up to Rs 5 lakh will be given immediately after processing and will benefit 14 lakh textiles, but this year there has been a significant delay in getting refunds to the people.
The last date for filing income tax returns (ITR) is now a few days left for December 31. Many people have filed income tax returns long back. Many people complain that they are delaying the refund this time. Let us know why this time was delayed and how can you check the status of your income tax refunds?
The income tax department had made a statement in April that this time income tax refunds up to Rs 5 lakh will be given immediately after processing and will benefit 14 lakh textiles. But the recent delay in getting refunds this year has not been delayed by several months.
Many of the taxpayers on the Twitter handle of the income tax department themselves are constantly complaining about it. However, many firms engaged in income tax filings say that refunds have started coming in time.
What happens to refunds
In fact, the income tax tax of the income tax payer is deducted in advance on the basis of his estimated investment document in a financial year. But when he submits the final papers by the end of the financial year, if he gets the calculation that his tax has been deducted and he has to withdraw the money from the income tax department, he files the ITR and applies for refunds.
45 days time in processing
After the ITR verification, the Income Tax Department processes the tax under the Income Tax Act, 1961 and then sends a notification on completion of the processing. These notifications are sent on mobile and to the e-mail ID. Every ITR is processed through the Central Processing Centre (CPC), wherein the data from the taxpayer is compared with the data already available with the CPC. In this entire process, the department is given 45 days, but now things have become quite electronic and fast, because of this, the refund is very quick.
What is the reason for the delay
In fact, the income tax department has announced a technical upgrade to the ITR system this year. This may be due to delay in income tax refunds. This upgrade is being done so that further income tax returns can be processed and expedited.
"We are taking a new step as a way of improving services to textiles," the income tax department tweeted on November 30 in response to a textile question. We are going to adopt a new technology upgrade platform (CPC 2.0) to enable faster processing of ITR. ITR for the assessment year 2020-21 will be processed only on CPC 2.0.
The income tax department has not revealed by when the updation will be completed. However, many of the tax matters are questioning whether the income tax department may be delaying refunds due to the liquidity crunch caused by the corona. Tax collections have also declined during the Corona crisis.
Now the time to come refunds!
Several firms involved in filing income tax returns say that things have now gone well and refunds have started coming in time. "There was some delay earlier, but now the refund has started coming in time," said Amar Nath Giri, a padharadhanpara of Giri & Co,a Delhi-led firm. Refunds of some of our custtermus came within a month," he said.
How to check the status of your refund
For the status of your refund, you can check it by visiting NSDL or e-filing portal of income tax department. Log in to the e-filing portal and enter your user name, password, date of berth etc. input. Then click on the 'My Account' tab and go to the 'Refund/Demand Status' option. Click here to know the status of your refund.
Refund of Rs. 47,608 crore received
In a tweet on Wednesday, the Income Tax Department said that more than 3.82 crore income tax returns have been filed for the assessment year 2020-21 i.e. this year till December 22 and the Central Board of Direct Taxes has given an income tax refund of Rs 47,608 crore to 1.18 crore textiles between April 1 and December 20, 2020.
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