Income tax department issues record refunds of Rs 70 billion in Q1

Piyush GoyalThe income tax department has issued record refunds of Rs 70 billion in the first quarter of 2018-19, officiating finance minister Piyush Goyal said.This was 26 per cent more than the refunds worth Rs 555.2 billion issued in April-June of 2017-18.How this would affect tax collections remains to be seen as the figures have not been released.The ministry’s move to increase the threshold for tax disputes would lead to a 66 per cent reduction in cases under litigation.However, that would mean reduction in the stuck up amount by only 1.8 per cent.ALSO READ: Income Tax department prescribes dress code for employees of Delhi officeThe ministry’s step will help cases stuck in litigation and small and medium businesses, he said.“Small- and mid-sized taxpayers will benefit with the increase in threshold limit for filing appeals as they can now focus on doing business rather than litigation,” Goyal said.In order to reduce litigation, the government on Wednesday hiked the threshold limit for filing appeals in tribunals to Rs 2 million, while the same for High Courts and the Supreme Court has been raised to Rs five million and Rs 10 million, respectively.ALSO READ: Filing income tax return can be a bit tricky if you have shifted jobsWith this, tax litigation in the Central Board of Direct Taxes (CBDT) and Central Board of Indirect Taxes and Customs (CBIC) will be reduced by 41 per cent and 18 per cent, respectively, added Goyal.Nearly 30,000 cases will be withdrawn from various litigation fora, reducing tax disputed cases by 37 per cent“In case of the CBDT, the withdrawal of 41 per cent of the cases will have a revenue impact of Rs 48 billion in absolute terms, while in case of the CBIC, withdrawal of 18 per cent of cases will have a revenue impact of Rs 8 billion,” he said. chart
Source: Business Standard