The Income Tax Department is currently scrutinizing certain refund claims, particularly those flagged as “high-value” or involving specific deductions, according to Central Board of Direct Taxes (CBDT) Chairman Ravi Agrawal. This thorough analysis aims to ensure accurate payouts and prevent erroneous refunds, potentially causing temporary delays. Legitimate refunds are expected to be processed by December.
Addressing the temporary delays, Chairman Agrawal mentioned that the department is proactively communicating with taxpayers, advising them to file revised returns if necessary. He clarified that lower-value refund claims are being processed and released without holdups. The department’s continuous review of refund claims identified discrepancies, prompting this meticulous approach.
Official data indicates a decrease in refund issuances, with figures dropping approximately 18% to ₹2.42 lakh crore between April 1 and November 10. Chairman Agrawal attributed this “negative growth” partly to a decline in claims, despite the rationalization of Tax Deducted at Source (TDS) rates.
Beyond refunds, the CBDT is actively working to reduce litigation related to direct taxes. Appellate authorities are focused on resolving pending cases, with disposal rates significantly exceeding those of the previous year. Despite prior year accumulation of pending cases due to circumstances such as Covid-19, more than 40% of appeals have been resolved this year compared to last. The CBDT anticipates even greater progress by the end of the year.
Chairman Agrawal emphasized that these measures are geared towards optimizing the refund process, minimizing delays for compliant taxpayers, and fostering a more efficient tax administration system.
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