Clearing old dues to expedite refund process: The Income Tax Department has urged taxpayers to promptly respond to notifications regarding outstanding tax demands from previous years. This proactive step is aimed at expediting the clearance of refund for the fiscal year 2022-23.
Several taxpayers have taken to social media to share their receipt of notifications from the Income Tax Department regarding unresolved tax demands from past years. In a recent post on ‘X’, the department emphasized that this approach is designed to be taxpayer-friendly and aligns with the principles of natural justice.
In the current fiscal year, a significant number of tax returns have been filed, totaling 7.09 crore for income earned in 2022-23. Out of these, 6.96 crore returns have been verified, with 6.46 crore returns already processed. Among these processed returns, 2.75 crore are eligible for refunds. However, in some cases there are outstanding demands from previous years.
Under Section 245(1) of the Income-tax Act, 1961, taxpayers have the right to make representations before their refundable tax credit is adjusted against existing demands. They can agree, disagree, or provide clarifications regarding the status of the demand.
The Income Tax Department is reaching out to taxpayers with existing demands from previous years, informing them of the situation. Taxpayers are encouraged to seize this opportunity and respond to these notifications. This proactive engagement will help in resolving pending demands and ensuring a smooth and timely issuance of refunds.
The Income Tax Department is committed to efficiently processing Income Tax Returns (ITRs) and ensuring the swift issuance of refunds. They aim to maintain a streamlined process and address taxpayer concerns promptly.
You may also Like–https://anptaxcorp.com/demystifying-cryptocurrency-taxation-in-india-2023-a-comprehensive-guide/