The Income Tax Department on Wednesday said it will release all pending income tax refunds up to Rs 5 lakh immediately, in a move that will benefit around 14 lakh taxpayers. Besides, all pending GST and custom refunds will also be released benefiting close to 1 lakh businesses, the note stated. The total refund amount will be to the tune of Rs 18,000 crore, finance ministry said.
"All GST and custom refunds will also be released, which will provide benefit to around 1 lakh business entities, including MSMEs," said the Department of Revenue under the Ministry of Finance, adding the total refund granted will be approximately Rs 18,000 crore.
The decision has been taken in the aftermath of the COVID-19 situation and with a view to provide immediate relief to the business entities and individuals, said a statement from the department.
The latest move by the finance ministry comes after the government last month decided to provide a fiscal stimulus package worth Rs 1.7 lakh crore to help the poor and migrants tackle the financial difficulties arising from the coronavirus (COVID-19) outbreak, and the 21-day nationwide lockdown that began the previous day.