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March 12, 2021

CBDT issues refund of over Rs 2 Lakh Cr in current fiscal year

by CA Jessica Nagaonkar in Income Tax

CBDT issues refund of over Rs 2 Lakh Cr in current fiscal year

The apex body of the department is the Central Board of Direct Taxes (CBDT) and it functions as a division of the Ministry of Finance under the Department of Revenue. Its functions include formulation of policies, dealing with natters relating to levy and collection of direct taxes, and supervision of the functioning of the entire Income Tax Department. CBDT also proposes legislative changes in direct tax enactments and changes in rates and structure of taxation in tune with the policies of the Government.

If, any assessment year an assessee pays the tax which is more than the amount for which he is actually chargeable and if the assessee proves excess payment before the Assessing Officer, section 237 empowers the assessee to claim a refund of the excess. Once the Assessing Officer is satisfied about the excess payment made by the assessee, he can allow the claim or refund.

Under the following cases a claim to refund may arise –

  • When tax is deducted at source from salary, interest on securities of debentures, dividend at a rate higher than the rate applicable to the total income of an assessee.
  • When tax paid in advance exceeds the amount of tax actually payable as determined at the time of regular assessment.
  • When tax calculated was higher due to some mistake and later on tax liability is reduced on account of rectification of a mistake.
  • When tax was calculated at the higher rate on the payment given to non-residents whereas they were actually chargeable at a lower rate of income tax.
  • When due to double taxation, the assessee is entitled to a double taxation relief.

CBDT has issued refunds of over Rs 2,00,411 crore to more than 2.02 crore taxpayers between 1st April, 2020 to 8th March, 2021. Of this, personal income tax refunds of Rs 71,865 crore have been issued to 1,99,44,329 taxpayers and corporate tax refunds of Rs 1,28,546 crore have been issued in 2,20,372 cases

One can check their refund status online by using the below procedure:

  • Access the refund pages.
  • Enter PAN, relevant assessment year and captcha image and click on ‘submit’
  • You will see the Refund Status displayed on the next screen
  • You can also access the Refund payment details reflected in Form 26AS in the ‘Tax credit statement’.

Department may not pay you all the refunds due to you. If at all you have taxes due for any of the previous years and a refund due to you in another year, the income tax department may adjust the refund accordingly. However, the department cannot do so without giving the taxpayer an opportunity to explain why such an adjustment should not be done. 

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