The Income Tax Department in a relief for taxpayers awaiting their income tax refunds, has disclosed a deadline of April 30 for the approval of pending refunds. The same measure arrived amidst a flurry of activity within the department, with exceeding than 46,000 Income tax returns furnished within the first 5 days of the AY 2024-25 portal opening dated April 1. A proactive approach by tax authorities is indicated as nearly 3,000 returns have already undergone processing.
For the current fiscal year, an official source informed that the department has prepared an interim action plan, summarizing specific timelines for various taxpayer-related activities.
As per the official “Approval of pending refunds has been prioritized under immediate action. Our aim is to ensure the approval of all pending refunds by April 30, 2024, particularly those withheld under section 241A, where scrutiny assessments have been concluded and necessary orders passed.”
Assessing Officers have been empowered by Section 241A of the Income Tax Act to withhold refunds if their grant is considered likely to adversely affect revenue. Even after the substantial tax refunds totalling over ₹3.36-lakh crore issued in the financial year 2023-24 till March 17, concerns continue among assessees for the pending income tax refunds from not only the aforementioned fiscal year but also earlier periods.
“All pending refunds related to e-returns filed on the Income Tax Business Application (ITBA) for all assessment years must be approved by Jurisdictional Assessment Officers or Range Heads by April 30,” the official expressed.
National Faceless Assessment Center
Another critical deadline is been set by the department for matters encountering the potential time limitations particularly those slated to be time-barred by 31st March 2025.
The time-barred matters concept as outlined in section 148 of the Income Tax Act, authorizes tax officials to issue notices before assessees whose income does not get effectively calculated. Such notices are issued in 3 years from the finish of the assessment years the same duration may be extended to 10 years if the hidden income surpasses Rs 50 lakh.
The official cited that “June 30 has been designated as the deadline for disposing of penalties in at least half of the cases facing potential time-bar by next March.”
TDS Cases and Disposal Due Dates
1 month has been provided by the department for the disposal of all due applications as of 1st April 2024 related to NIL or lower Tax Deducted at Source (TDS) / Tax Collected at Source (TCS). “All fresh applications will also be disposed of within a month of receipt,” the official quote. By 30th June the orders are anticipated to be passed in the matters where the TDS surveys were held up to 31st March 2024.
The objective of the Income tax department’s measure is to facilitate the processes, address pending matters, and ensure timely resolution of taxpayer problems, reinforcing the obligation for efficient administration and taxpayer satisfaction.
