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Income tax refunds increase by 22% so far this year

The income tax department has issued 22% more refunds till November 28 as compared with the same period of the last year. The Central Board of Direct Taxes (CBDT) figures show that refunds in FY 2019-20 was 1.46 lakh crore as compared to 1.19 lakh crore, an increase of 22.7%.

To ensure faster, accurate and safer credits of income tax refund, the income tax department has done away with the practice of issuing paper cheques as all refunds have been directly credited to the taxpayer’s bank account. Earlier, the taxman used to issue refunds cheques in some cases but now it has been made mandatory to issue refunds only through the e-mode. Taxpayers have been asked to link their bank accounts with PAN so that the refunds can be processed.

The number of taxpayers who have got refunds till November 28 has also increased by about 20% to 2.10 crore.

The income tax department issued 43 lakh more refunds within 30 days in the FY 2019-20, compared to the previous year, which results in an increase of over 42%.

Out of the returns processed so far, refunds were issued within 30 days in 68% of the cases. Last year, the figure was 57% during the same period.

More than 20 lakh verified ITRs are now pending for processing. Refunds will be issued soon in such cases, the income tax department has said.

More than 22 lakh refunds, which had failed during the past years due to several reasons like address not found, bank account closed, etc, have been proactively reissued in the current year.

According to CBDT figures, there has also been a 20% increase in total number of ITRs processed. The income tax department processed 4.70 crore ITR files during FY 2019-20 till November 28 while for the same period in FY 2018-19, 3.91 crore returns were processed.

Source: livemint