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Home CURRENT AFFAIRS BUSINESS Relief for Taxpayers! Income Tax Department Pledges ITR Refunds by January 2024

Relief for Taxpayers! Income Tax Department Pledges ITR Refunds by January 2024

By January 31, 2024, the Income Tax Department guarantees taxpayers a refund of their income taxes for the fiscal years 2017–18, 2018–19, and 2019–20.

Income Tax News

Income Tax News: Taxpayers should anticipate receiving their income tax refunds by January 31, 2024, for the fiscal years 2017–18, 2018–19, and 2019–20. The Income Tax department recently issued an order to fix bugs and other problems that were impeding the filing of income tax returns (ITRs) for these years. In the event that the ITR’s computation agrees with their evaluation, the department promised to promptly issue refunds.

Refunds for Late ITRs

The directive stated that refunds are available for even late ITRs for the specified fiscal years. The department stated that an email notification will be sent to the registered email address prior to the refund being credited to the bank account. It further stated that this refund cycle will not apply to ITRs that are being investigated or that are pending for reasons related to the assesses. ITRs that have a demand indicated as payable or anticipated to arise after processing will also not be reimbursed.

Evolution of ITR Processing Deadlines

There are deadlines for processing filed ITRs according to the income tax regulations. Previously, the department had one year from the financial year’s end to finish processing. This was changed to require a nine-month period from the end of the fiscal year, and it will take effect on April 1, 2021. For example, in accordance with the new rule, an ITR filed for FY 2021-22 (AY 2022-23) should ideally be processed by December 31, 2023. If this deadline is met and the ITR is still not processed, there is, however, nothing that can be done.

Reminder for Taxpayers

Meanwhile, taxpayers need to keep in mind that, if the assessment hasn’t been finished by December 31, 2023, the deadline for filing a belated or revised ITR for the assessment year 2023–24 is December 31 for all assessees. Under Section 234F of the Income Tax Act, 1961, late filing of returns is subject to a ₹5,000 fee.

Maximum Penalty for Delay

The maximum penalty for the delay is ₹1,000 for taxpayers whose total income in a financial year is not more than ₹5 lakh. Additionally, taxpayers are assessed interest at 1% per month after the end of the due date until they file an ITR if there is tax that needs to be paid.

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