IT dept will release all pending tax refund up to Rs 5 lakh immediately

New Delhi: Income Tax department will release all pending income tax refunds up to Rs 5 lakh immediately, the move will benefit 14 lakh taxpayers, department of Revenue said on Wednesday as quoted by news agency ANI. In a similar move, all GST & custom refunds of Rs 18,000 crore will also be released to provide benefit to around 1 lakh business entities including MSMEs.

“In the context of the COVID-19 situation and with a view to provide immediate relief to the business entities and individuals, it has been decided to issue all the pending income-tax refunds up to Rs 5 lakh, immediately. This would benefit around 14 lakh taxpayers,” an official statement said.

The latest move by the finance ministry comes weeks after the government decided to provide a fiscal stimulus package worth Rs 1.7 lakh crore to help poor and marginalised class amid the nationwide lockdown due to coronavirus outbreak.

Finance Minister Nirmala Sitharaman had aslo announced an insurance cover worth Rs 50 lakh per person for sanitation workers, ASHA workers, doctors, nurses and paramedics who are on the frontlines of the corona battle.