The immediate focus of income tax department is on approving pending refunds, particularly those withheld under section 241A where scrutiny assessments have been completed and necessary orders passed.
If you’re waiting for your income tax refund, here’s some good news for you. The Income Tax (I-T) Department has announced a deadline of April 30 for approving all pending refunds, as reported by Business Line.
According to sources, the department has rolled out an interim action plan for tax refunds in the current fiscal year, outlining specific timelines for various taxpayer-related actions.
“The immediate focus is on approving pending refunds, particularly those withheld under section 241A where scrutiny assessments have been completed and necessary orders passed,” an official stated, as reported by Business Line.
Understanding Refund Withholding
Under Section 241A of the Income Tax Act, assessing officers can withhold refunds if granting them might adversely impact revenue.
In the previous fiscal year, the department reported issuing refunds totaling over ₹3.36 lakh crore by March 17, 2024, compared to ₹2.98 lakh crore in the corresponding period of FY23. Despite this, there are still complaints from taxpayers about pending refunds from not only the previous fiscal year but also earlier years.
“Jurisdictional Assessment officers or Range Heads need to approve all pending refunds related to e-returns filed on the Income Tax Business Application (ITBA) for all assessment years by April 30,” an official emphasized.
Key Deadlines and Extensions
Another critical deadline has been set for cases at risk of becoming time-barred by March 31, 2025, as per Section 148 of the Income Tax Act. This section empowers tax officials to issue notices to taxpayers whose income has not been correctly assessed.
In usual circumstances, notices can be issued within three years from the end of assessment years. However, this period can extend to 10 years if concealed income exceeds ₹50 lakh.
“The deadline for disposing of penalties in at least half of the cases nearing the time-barred limit next March has been set for June 30,” the official added.
Conclusion
Taxpayers eagerly awaiting their income tax refunds can expect action from the I-T Department with the set deadline of April 30 for approving pending refunds. With a clear plan in place, the department aims to address concerns and ensure timely refunds for eligible taxpayers.
Also Read: Interim Plan of Income Tax Department for FY 2024-25: Focus on TDS & Appeal Processing
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