For individuals waiting on their income tax refunds since the financial years 2017-18, 2018-19, and 2019-20, there’s finally a ray of hope.
The Income Tax Department has taken a decisive step to address cases where refunds have been stuck due to various reasons.
According to an official order, eligible individuals can expect their long-awaited refunds to be processed and credited to their bank accounts by January 31, 2024.
Refund Criteria: Matching Calculations: Essential Condition for Income Tax Refund Disbursement
The income tax refund will be granted if the calculations in your Income Tax Return (ITR) align with the calculations of the Income Tax Department.
A notification under section 143(1) will be sent to the registered email ID before the refund is credited, ensuring transparency in the process.
The focus is on individuals whose ITRs for the financial years 2017-18, 2018-19, and 2019-20 could not be processed within the stipulated deadline, leading to the withholding of tax refunds.
Processing Order: Strategic Approach to Clear Pending Refunds
According to the tax department’s order, priority will be given to processing ITRs that have pending tax refunds for the mentioned financial years.
This move is aimed at providing relief to individuals who have faced delays in receiving their legitimate refunds.
Exceptions to the Refund Release: Certain Categories Excluded from Pending Refund Resolution
However, it’s essential to note that not all cases will be covered by this initiative. The following categories will not be eligible for the pending income tax refund release:
- ITRs earmarked for scrutiny.
- ITRs not processed by the assessee for specific reasons.
- Cases where additional refund is claimed after the ITR process.
As the government endeavors to streamline the income tax refund process, eligible individuals can anticipate the long-overdue financial relief by the end of January 2024.