In a recent announcement, the Income Tax (I-T) Department has taken a proactive step to assist taxpayers with pending outstanding payments by offering them a chance to reconcile these demands. This reconciliation process will enable the prompt issuance of refunds, where applicable, to the concerned taxpayers. The department emphasized its commitment to efficiently processing Income Tax Returns (ITRs) and promptly releasing refunds.
However, a particular scenario has emerged where taxpayers are eligible for refunds, but they have unresolved outstanding demands on their record.
The I-T Department issued a statement on Saturday, urging taxpayers to take advantage of this opportunity and respond to notifications regarding outstanding demands. This cooperative effort will help in clearing pending demands and expediting the issuance of refunds.
According to Section 245(1) of the Income-tax Act, 1961, taxpayers must be given an opportunity to present their case before any adjustments are made to their refunds in light of existing demands. In this context, taxpayers are required to either agree, disagree, or clarify the status of the demand.
Consequently, taxpayers who have demands pending from previous years are being notified accordingly, as confirmed in the official statement.
The I-T Department emphasized that this initiative aligns with principles of natural justice, aiming to provide a friendly and equitable approach to taxpayers.
For the Assessment Year 2023-24, a total of 7.09 crore returns have been filed. Out of these, 6.96 crore ITRs have been verified, with 6.46 crore returns processed to date. This includes 2.75 crore refund returns, as reported by the I-T Department.