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)

 

Government of India

Department of Revenue

Ministry of Finance

Central Board of Direct Taxes

New Delhi, 15th April, 2020

PRESS RELEASE

Over 10.2 lakh Refunds worth Rs.4,250 Crore issued in a Week by CBDT

In pursuance to the Government’s decision vide Press Note dated April 8th 2020 to issue pending income tax refunds up to Rs. 5 lakh in order to help taxpayers in a Covid-19 pandemic situations, the Central Board of Direct taxes (CBDT) today said that it has already issued over 10.2 lakh refunds totalling to around Rs. 4,250 crore as on April 14th 2020. These refunds are over and above the 2.50 crore refunds already issued in FY 19-20 till March 31st 2020 totalling to Rs. 1.84 lakh crore.

CBDT further said that about 1.75 lakh more refunds are in the process of issuance in this week. These refunds would get credited directly to the taxpayer bank account in 5-7 business days from issuance. However, in around 1.74 lakh cases, email 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 accordingly. 

It may be noted that these reminder emails from I-T department are in fact for the benefit of taxpayers as it seeks them to confirm their outstanding demand, their bank accounts and reconciliation of defect/mismatch prior to issue of refund.

CBDT appealed that it is in the interest of taxpayers to provide a response to such emails at the earliest so that refunds could be processed and issued at the earliest. CBDT has requested taxpayers to check their email and login to their e-filing account to respond to the I-T Department immediately.

CBDT also said that it has noted in a few media, including social media, some questions are being raised with regards to CBDT’s computerised email to the taxpayers to respond within 7 days for enabling the department to process refund.  In this regards, it is clarified that these are the necessary routine process related communications to the taxpayers to seek response on defective ITRs, prima facie adjustments and where confirmation is sought about certain claims made by them. In all such cases, a quick response from the taxpayer would enable the I-T Department to process their refunds expeditiously.

(Surabhi Ahluwalia)

Commissioner of Income Tax

(Media & Technical Policy)

Official Spokesperson, CBDT

 

Ministry Of Law & Justice

Income Tax Appellate Tribunal holds All India Video Conference on ‘The Direct Tax Vivad Se Vishwas Act, 2020’

ITAT President Justice P.P. Bhatt encourages stakeholders to avail the Scheme so as reduce pending tax litigation

Government open to suggestions for better implementation of the scheme and propose amendments to the Bill, says Mr. P.C. Mody, Chairman, CBDT

Dated: 06 APR 2020

At a time when the entire world, including India, is traversing in the uncharted territory of the pandemic of Coronavirus COVID-19, and is virtually in a complete lockdown of 21 days effective 24^th March, 2020 announced by the Government of India, the Income Tax Appellate Tribunal (ITAT), held an All India Video Conferencing of its Members on the topic ‘The Direct Tax Vivad Se Vishwas Act, 2020’ here today.  The session was presided over by Mr. Justice P.P. Bhatt, President, ITAT.  Shri Pramod Chandra Mody, Chairman, Central Board of Direct Taxes (CBDT) was the chief guest. The other guest faculty included Shri Kamlesh Chandra Varshney, Joint Secretary-TPL(1) and Shri Rajesh Kumar Bhoot, Joint Secretary-TPL(2) in the Ministry of Finance.   Keeping in view the relevancy and importance of the subject, the President, ITAT thought it fit to invite the representatives of the ten major Tax Bar Associations from all over India.  Accordingly, the representatives of the Bar Associations from Delhi, Mumbai, Ahmedabad, Bengaluru, Kolkata, Chennai, Hyderabad, Lucknow, Pune and Chandigarh participated.

In his Presidential address, Justice P.P. Bhatt emphasized the need of stakeholders’ participation in the Alternative Dispute Resolution Mechanism and explained the keen interest being evinced by the Central Government to create a dispute-free tax collection system. He stated that as an institution specialising in adjudication of tax disputes, ITAT expected all the stakeholders to consider availing the Scheme which was intended to reduce the pending litigation, enable timely recovery of taxes by the Government and sparing the taxpayers’ time, resources and energy from litigation.  He urged the stakeholders, more particularly, the tax practitioners to take the task further in a mission mode, so that the system that is choked with the avoidable litigation could be relieved for concentrating on more meritorious issues, which have a bearing on the tax policies affecting the taxpayers on a large scale.  He observed that the success of the technical session lies in carrying home the message by the representatives of the Bar Associations for further discussion with the members in their respective Associations and in carrying forward the objectives of the scheme to its logical conclusion.

Mr. P.C. Mody, Chairman, CBDT explained the objective behind the scheme and the role of the stakeholders in making it a grand success. He explained to the audience that the Government as well as the Board have undertaken a massive exercise of considering the suggestions from every corner, for proposing suitable amendments to the Act and also clarifying the doubts by way of answers to the frequently asked questions. He said that no scheme could be conceived with all the perfections, so also could be this scheme, and therefore, he assured that the Government and the Board are open for suggestions and comments from every stakeholder for better implementation of the scheme in its letter and spirit.

Mr Kamlesh Chandra Varshney and Mr Rajesh Kumar Bhoot, Joint Secretaries in the Ministry of Finance explained the subject from different angles and also the text of the scheme as well as the nuances involved in its implementation.

One representative from each of the ten Bar Associations participated in the discussions and deliberations by making several important suggestions for effective implementation of the scheme and also seeking clarification in respect of certain queries which go to the core of the implementation of the Scheme. The representatives of the Bar Associations unanimously expressed the opinion that the scheme itself is a wonderful piece of legislature that has come after a long time. They expressed a feeling that the unique initiative of holding the technical session by the  ITAT would go a long way in facilitating the implementation of the scheme and the expertise of the speakers on the subject reflected in their dealing with the subject and had thrown a new light in the understanding of the nuances. The representatives of the Bar Associations also expressed their satisfaction about the value addition to the knowledge which they would share with the other members of the Associations and to encourage the deserving cases to end up in filing the declarations under this scheme.

            Mr. G.S. Pannu, Vice President of Delhi Zone coordinated the entire session.  It was emphasised by Mr. Pannu that apart from the scheme which was laudable, it was important that the CBDT draws up a mechanism, by way of which, the litigation is kept within manageable limits by making suitable amendments in the Statute.

The one and half hour long video conference came to an end with the vote of thanks presented by Mr. R.S. Syal, Vice President, Pune Zone.

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APS/PK
(Release ID: 1611698)

 

Ministry of Finance

IT Department to release all pending income tax refunds up to Rs 5 lakhs immediately ; Around 14 lakh taxpayers to benefit

All GST & CUSTOM refunds also to be released; to provide benefit to around 1 lakh business entities including MSMEs Rs 18,000 crore of total refund granted immediately

Dated: 08 APR 2020

In the context of the COVID-19 situation and with a view to provide immediate relief to the business entities and individuals, it has been decided to issue all the pending income-tax refunds up to Rs. 5lakh, immediately. This would benefit around 14 lakh taxpayers.

It has also been decided to issue all pending GST and Custom refunds which would provide benefit to around 1 lakh business entities, including MSME. Thus, the total refund granted will be approximately Rs. 18,000 crore.

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RM/KMN

(Release ID: 1612291)