Ministry of Finance

E-mails for facilitating faster refund can not be misconstrued as harassment: CBDT

Dated: 21 APR 2020 

The Central Board of Direct Taxes (CBDT) responding to some observations being circulated on social media alleging that the Income Tax Department is pursuing recovery proceedings and using arm-twisting methods by adjusting outstanding demands of the start-ups, today stated that these observations are completely unfounded and are total misrepresentation of facts.

The CBDT said that its email seeking clarification from all those who are entitled to get tax refund but also have outstanding tax to pay cannot be misconstrued as harassment. These computer generated emails have been sent to almost 1.72 lakh assessees which includes all classes of taxpayers – from individual to HUF to firms, big or small companies including start-ups and therefore to say that start-ups are being singled out and harassed is total misrepresentation of facts.

The CBDT said that these emails are part of the faceless communication which protects public money by ensuring that refunds are not released without adjusting against outstanding demand, if any. These emails are auto-generated u/s 245 of the I-T Act in refund cases where there is any outstanding demand payable by the assessee. In case the outstanding demand has already been paid by the taxpayer or it has been stayed by the higher tax authorities, the taxpayers are requested through these mails to provide the status update so that while issuing the refund, these amounts are not held back and their refunds are released forthwith.

The CBDT said that such communications are just a request for seeking an update response from the assessee for the proposed adjustment of refund with the outstanding demand and cannot be misconstrued as a notice of recovery or be perceived as so-called arm-twisting by the I-T department because the department is duty bound to protect public money by adjusting the outstanding demand before releasing the refund.

The CBDT further said that in order to provide hassle-free tax environment to the start-ups, a consolidated Circular no. 22/2019 dated 30^th August 2019 was issued by the CBDT. Apart from laying down the modalities for assessment of start-ups, it also stipulated that the outstanding income tax demands relating to additions made under Section 56(2)(viib) would not be pursued. Any other income tax demand of such start-ups would also not be pursued unless the demand was confirmed by ITAT. Furthermore, a start-up cell was also constituted to redress grievances of start-ups and address other tax related issues of such concerns.

Explaining the extant procedure pertaining to recovery of outstanding demands in the case of an assessee, the CBDT said that an opportunity is provided by the department to the assessee to either clear the demand or intimate the status of said demand to the I-T Department. Invariably, such communication is made by the department by sending an email to the assessee informing it of the quantum of outstanding demand and providing an opportunity to pay the demand or respond with evidence regarding payment of the same if already made, or update the status of any other action on it.

The CBDT said that the assessee on its part is required to furnish details of the pending demand, whether it has been paid or has been stayed by any appellate/competent authority so that the department could keep the same in abeyance and do not deduct this amount from refund.

Thus, following the existing procedure of recuperation of outstanding demand, similar mails have also been sent to 1.72 lakh assessees including start-ups to intimate to the I-T department, the status of the demand outstanding and whether it has been stayed by the competent authority so that appropriate action can be taken for release of refunds without delay to the start-up. However, not providing such a response to the emails of I-T dept and raising false alarm is contrary to the spirit of the Circular 22/2019 of CBDT and is totally unjustified.

The CBDT further requested the start-ups to respond to its emails at the earliest so that further necessary action can be taken by the I-T Department to release the refunds immediately wherever due, in accordance with the extant procedure.

The CBDT reiterated that pursuant to the 8^th April 2020 declaration vide an earlier Press Release of the Government, the CBDT has till date issued nearly 14 lakh refunds involving an amount of over Rs. 9,000 crore to various taxpayers including individuals, HUFs, proprietors, firms, corporate, start-ups, MSMEs in order to help taxpayers in the COVID-19 pandemic situation. Many refunds are pending for the want of response from the taxpayers and will be issued at the earliest possible once the information is updated.

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RM/KMN
(Release ID: 1616620)

 

Ministry of Finance

CBDT revising return forms to enable taxpayers avail benefits of timeline extension  due to Covid-19

Dated: 19 APR 2020

In order to enable income taxpayers to avail full benefits of various timeline extensions granted by the Government of India due to Covid-19 pandemic situations, the CBDT is revising the return forms for FY 2019-20 (Assessment Year 2020-21) which shall be notified by the end of this month.

CBDT today said that in order to facilitate taxpayer to avail full benefits with various timeline extension up to 30^th June 2020 granted by the government, it has initiated necessary changes in the return forms so that taxpayers could take benefits of their transactions carried out during the period from 1^st April 2020 to 30^th June 2020 in the return forms for FY 2019-20.

CBDT explained that the necessary modifications in the return forms are being made to allow taxpayers to avail the benefits of their investments/transactions made for the Apr-to-Jun 2020 period. Once the revised formsare notified, it will further necessitate the consequential changes in the software and return filing utility.Hence, the return filing utility after incorporating necessary changes shall be made available by 31^st May, 2020 to avail benefits for FY 2019-20.

CBDT said thatdue to outbreak of Covid-19, the Government has extended various timelinesunder the Income-tax Act,1961 vide Taxation and Other Laws (Relaxation of certain provisions) Ordinance, 2020. Accordingly, the time for making investment/ payments for claiming deduction under Chapter-VIA-B of IT Act which includes Section 80C (LIC, PPF, NSC etc.), 80D (Mediclaim),80G (Donations), etc. for FY 2019-20 has also been extended to 30^thJune 2020. Also, the dates for making investment/construction/purchase for claiming roll over benefit in respect of capital gains under sections 54 to section 54GB has also been extended to 30^th June 2020. Therefore return forms are being revised to facilitate reporting of the transactions of the relief period.

It may be noted that generally the income-tax return forms are notified in the first week of April. This year also the e-filing utility for filing of return for Assessment Year 2020-21 wasmade available as on 1st April, 2020, and the Income-tax Return (ITR) Forms ITR-1 (Sahaj) and ITR-4 (Sugam) for the FY 2019-20 (Assessment Year 2020-21),too, were already notified vide notification dated 3rd January, 2020. However, to ensure that the taxpayer is enabled to avail all benefits of the timeline extension due to Covid -19 pandemic, the ReturnFormsrevision is being carried out.

RM/KMN
(Release ID: 1616035)

 

Ministry of Finance

More than Rs 36,659 crore transferred by using Direct Benefit Transfer (DBT)  through Public Financial Management System (PFMS)in the Bank accounts of 16.01 crore  beneficiaries  during COVID 2019 lockdown

Cash Benefits announced under Prime Minister Garib Kalyan Package also being transferred by using DBT Digital Payment Infrastructure

PFMS usage for DBT Payments increased over last #3 FYs;  total DBT amount disbursed increased from 22% in FY 2018-19 to 45%in FY 2019-20

DBT ensures Cash benefit directly credited into the account of the beneficiary, eliminates leakage and improves efficiency

Dated: 19 APR 2020

More than Rs36,659 crore has been transferred by using Direct Benefit Transfer (DBT)  through Public Financial Management System (PFMS) inthe Bank accounts of 16.01 crore beneficiaries  during COVID 2019 lockdown by the  Controller General of Accounts (CGA) office ,Department of Expenditure,Ministry of Finance.

Direct Benefit Transfer ensures that the cash benefit is directly credited into the account of the beneficiary, eliminates leakage and improves efficiency.

The aforesaid cash amount has been transferred by  using robust digital payments technology PFMS (Public Financial Management System) for making DBT payments under Central Schemes (CS) /Centrally Sponsored Schemes (CSS) /CASP schemes .

Main Highlights :

1. More than Rs 36,659 Crores ( Rs. 27,442 crores [Centrally sponsored Scheme CSS+ Central Sector Schemes (CS)] +Rs. 9717 [State Govternment] ) transferred by using Direct Benefit Transfer (DBT)  through Public Financial Management System (PFMS) in the Bank accounts of 16.01 crore beneficiaries (11.42 crores [CSS/CS] + 4.59 crores [State ]) during COVID 2019 lockdown (24th March 2020 till 17thApril 2020)

2. Cash Benefits announced under Prime Minister Garib KalyanYojna Package also being transferred by using DBT Digital Payment Infrastructure. Rs500  each was credited in the women account holder of Jan- Dhan accounts. Till 13th April 2020 the total number of women beneficiaries were 19.86 Crores , which resulted in disbursement of Rs 9,930 crores (as per data of  Department of Financial Services).

3. PFMS usage for DBT Payments increased over last #3 FYs with Total DBT amount disbursed has been increased from 22% in FY 2018-19 to 45% in FY 2019-20.

The following are the details of cash benefits transferred by using PFMS for making DBT payments during COVID 19 period (24^th March 2020 till 17^thApril 2020).

1. During COVID 19Lockdown i.e24^th March 2020 till 17^thApril 2020 ;  the DBT payments under all the Central Sector/Centrally Sponsored Schemes through PFMS amounted to Rs. 27,442.08crore  in the accounts of 11,42,02,592beneficiaries through schemes like PM KISAN, Mahatma Gandhi National Employment Guarantee Scheme (MNREGS), National Social Assistance Program(NSAP), Prime Minster’sMatruVandanaYojana (PMMVY), National Rural Livelihood Mission (NRLM), National Health Mission (NHM), Scholarship Schemes of various ministries through National Scholarship Portal (NSP).

2. Apart from above mentioned schemes, payments were also made under the PM GaribKalyanYojana, Rs 500 was credited in the women account holder of Jan- Dhan accounts. Till 13th April 2020 the total number of women beneficiarieswere19.86 crore, which resulted in disrbursement of Rs 9,930 crore (as per data of  Department of Financial Services).

3. During COVID 19 period, many State Governments like UP, Bihar, MP, Tripura, Maharashtra, J&K, AP and others   have used DBT to transfer cash in the bank accounts.Through 180 welfare schemes ,the State Governments using PFMS have disbursed to4,59,03,908 beneficiaries, an amount of Rs. 9,217.22crore between 24^th March 2020 till 17^th April 2020.

Summary of DBT payments for Top 10 Centrally Sponsored Schemes/Central SectorSchemes:

Scheme	Period :  [24-Mar-2020 till 17-Apr-2020]
	Beneficiaries Paid	Amount (IRs Crore)
PRADHAN MANTRI KISAN SAMMAN NIDHI (PM-Kisan)-[3624]	8,43,79,326	17,733.53
MAHATMA GANDHI NATIONAL RURAL GURANTEE PROGRAM-[9219]	1,55,68,886	5,406.09
INDIRA GANDHI NATIONAL OLD AGE PENSION SCHEME (IGNOAPS)-[3163]	93,16,712	999.49
INDIRA GANDHI NATIONAL WIDOW PENSION SCHEME(IGNWPS)-[3167]	12,37,925	158.59
National Rural Health Mission-[9156]	10,98,128	280.80
Pradhan MantriMatruVandanaYojna-[3534]	7,58,153	209.47
PRE MATRIC SCHOLARSHIP FOR MINORITIES-[9253]	5,72,902	159.86
Food Subsidy for Decentralized Procurement of Foodgrains under NFSA-[9533]	2,91,250	19.18
INDIRA GANDHI NATIONAL DISABILITY PENSION SCHEME(IGNDPS)-[3169]	2,39,707	26.95
NATIONAL SOCIAL ASSISTANCE PROGRAMME ( NSAP)-[9182]	2,23,987	30.55

*Total Beneficiaries Paid 11,42,02,592 / Amount :Rs. 27,442.08 crore [as in para (i) above]

Summary of DBT payments of top 10 schemes of State Governments:

State	Scheme	Period :  [24-Mar-2020 till 17-Apr-2020]
		Beneficiaries Paid	Amount (RsCrore)
Bihar	DBT- Education Department-[BR147]	1,52,70,541	1,884.66
Bihar	Corona sahayata-[BR142]	86,95,974	869.60
U.P.	वृद्धावस्था/किसानपेंशनयोजना-[9529]	53,24,855	707.91
U.P.	UP-National widow pension scheme (3167)-[UP10]	26,76,212	272.14
Bihar	MukhyamantriVridhjan Pension Yojana-[BR134]	18,17,100	199.73
U.P.	कुष्ठावस्थाविकलांगभरणपोषणअनुदान-[9763]	10,78,514	112.14
Bihar	Bihar State Disability Pension Scheme-[BR99]	10,37,577	98.39
Assam	AS - Old Age Pension From State Contribution(OAPFSC)-[AS103]	9,86,491	28.88
Bihar	MUKHYAMANTRI VISHESH SAHAYATA-[BR166]	9,81,879	98.19
Delhi	Delhi Financial Assistance to Senior Citizen-[2239]	9,27,101	433.61

    *Total Beneficiaries Paid 4,59,03,908 / Amount :Rs. 9217.22 crore  [as in para (iii) above]

DBT payment growth using PFMS during the last three years :

PFMS usage for DBT Payments has increased over last #3 FYs wherein Transaction count increased to 11%  during FY 2018-19 (compared to Fy 2017-18) and 48% in FY 2019-20. The total DBT amount disbursed increased from 22% in FY 2018-19 to 45%in FY 2019-20.

BACKGROUND:

Ministry of Finance (MoF), Government of India, decided on mandatory use of Public Financial Management System (PFMS) of the office of Controller General of Accounts (CGA) for payment, accounting and reporting under DBT and directed (December 2014) all implementing Ministries/Departments to ensure that no payments under DBT schemes were processed unless the electronic payment files for such payments were received through PFMS from 1st April 2015. Direct Benefit Transfer (DBT) is a major reform initiative launched by Government of India to re-engineer the existing cumbersome delivery processes using modern Information and Communication Technology (ICT), by transferring benefits into the bank/postal accounts, preferably Aadhaar seeded, of accurately targeted beneficiaries, as well as in-kind transfers from Government to individual beneficiaries.

Payment ecosystem of DBT in PFMS

Beneficiary management in PFMS Beneficiary data can be entered into PFMS through either of the two modes viz.

1. through Excel upload from PFMS user interface and/or

2. through Secure File Transfer Protocol (SFTP) servers of the integrated external system(s)/ Line of Business (LoB) applications

3. PFMS also does pre-validation of Bank Accounts/Postal accounts and validation of Aadhaar number on National Payments Corporation of India (NPCI) Aadhaar mapper.

DBT includes in-kind and cash transfers to beneficiaries as well as transfers/honorariums given to various enablers of government schemes like community workers, etc for successful implementation of the schemes.

Transfer of cash benefits from Ministries/Departments is donethgrogh PFMS:

(a)        directly to beneficiaries from Ministries/Departments;

(b)        through State Treasury Account; or

(c)        through any Implementing Agency as appointed by Centre/State Governments.

BENEFITS OF DBT:

DBT intends to achieve (through CARE):

1. Curbing pilferage and duplication

2. Accurate targeting of the beneficiary

3. Reduced delay in payments , and

4. Electronic transfer of benefits, minimizing levels involved in benefit flow.

RM/KMN
(Release ID: 1616022)

 

Ministry of Finance

As a relief to MSMEs, I-T refunds worth Rs 5,204 Crore issued in last 10 days: CBDT

Dated: 17 APR 2020

The Central Board of Direct Taxes (CBDT) today said that Income tax refunds to nearly 8.2 lakh small businesses (proprietors, firms, corporate and trusts) worth Rs 5,204 Crore have been issued since 8th April 2020. These income tax refunds would help MSMEs to carry on their business activities without pay cuts and layoffs in Covid-19 pandemic situations.

The CBDT said that since the Government’s decision vide Press Note dated 8^th April 2020, I-T department has till date issued nearly 14 lakh refunds up to Rs 5 lakh each in order to help taxpayers in COVID-19 pandemic situation. Keeping its focus on providing relief to the small businesses in MSME sector, CBDT will further issue refunds of Rs 7,760 Crore earliest possible.

The CBDT reiterated its request that in around 1.74 lakh cases, responses are awaited from taxpayers regarding reconciliation with their outstanding tax demand for which a reminder email has been sent asking them to respond within 7 days so that the refund can be processed earliest. 

It may be noted that these responses can be provided online through the taxpayer e-filing account on: www.incometaxindiaefiling.gov.in

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RM/KMN

(Release ID: 1615506)

 

Ministry of Electronics & IT

Government of India Gives 4 Months’ Rental Waiver to the IT Companies Operating from Software Technology Parks of India (STPI) Centers

Dated: 16 APR 2020

In view of the challenges thrown by COVID19 outbreak and consequent lockdown, the Government today took a major decision to provide relief from payment of rental to the small IT units operating out of the Software Technology Parks of India (STPI).  Most of these units are either Tech MSMEs or startups. 

The Ministry of Electronics and Information Technology (MeitY) has decided to provide rental waiver to these units housed in STPI premises in the country from 01.03.2020 till 30.06.2020 i.e. for 4 months period as of now. 

Software Technology Parks of India (STPI) is an autonomous society under Ministry of Electronics & Information Technology, Government of India and it has 60 centers across the country. The initiative to provide rental waiver to the units located in these centers will provide relief to the industry in this crisis situation emerged due to COVID19 pandemic. This initiative will provide benefit to nearly 200 IT/ ITeS MSMEs, operating from these 60 STPI centers. The total cost of the rental waiver provided to these units during 4 months period from 01.03.2020 to 30.06.2020 is estimated to be around Rs. 5 Crore. This effort is also in the larger interest of around 3,000 IT/ ITeS employees who are directly supported by these units.  

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(Release ID: 1615052)