Economy

CBDT issued ₹1.25-lakh cr refunds this fiscal

Our Bureau New Delhi | Updated on October 21, 2020

The Central Board of Direct Tax has issued refunds of over ₹1,25,470 crore to more than 38.23 lakh taxpayers between April 1 and October 20, 2020.

An official statement said that income tax refunds of ₹33,870 crore and corporate tax refunds of ₹91,599 crore have been issued during this period.

Income-tax refund arises when taxes paid are higher than the actual tax liability (including interest). It could be in the form of advance tax, self-assessment tax, tax deducted at source, foreign tax credit, etc. There is no separate procedure to claim an income tax refund. One can claim tax refund by filing the return of income in the usual manner.

A taxpayer is supposed to ensure that the return is electronically verified through Aadhaar number OTP, EVC generated through bank account or physically verified by posting the signed ITR-V (acknowledgement) to Centralised Processing Centre (CPC) within 120 days of filing the return. Normally, a taxpayer has a time limit of 120 days, from the date of return filing, to verify his returns. The earlier one gets the verification done, the earlier the CPC will process one’s returns. Once the returns are processed by the CPC at the primary level for arithmetical errors, etc, refund will be issued to the taxpayer.

Published on October 21, 2020

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