Income Tax Department (Image Source: iStockphoto, TN Digital)
The Income Tax Department issued an important update regarding Income Tax Returns (ITRs) on Saturday. In their tweet on X, they conveyed their commitment to expeditiously process ITRs and issue refunds.
For the Assessment Year 2023-24, a total of 7.09 crore returns have been filed. Among these, 6.96 crore ITRs have been verified, and 6.46 crore returns have already been processed, including 2.75 crore refund returns. The primary focus is on ensuring the swift processing of returns and the prompt issuance of refunds.
It's worth noting that in some cases, taxpayers are entitled to refunds, but there are outstanding previous demands against them. To address such situations, Section 245(1) of the Income-tax Act, 1961, mandates providing taxpayers with an opportunity to express their stance before adjusting the refund against any existing demands. Taxpayers have the option to agree, disagree, or provide clarification regarding the status of the demand.
Consequently, taxpayers who have outstanding demands from previous years are receiving notifications about these demands. This initiative is aimed at being taxpayer-friendly and aligns with the principles of natural justice.
The Income Tax Department encouraged taxpayers to make use of this opportunity and respond to these notifications. By doing so, it will aid in the resolution and reconciliation of pending demands, facilitating the timely issuance of refunds.
Recently, the Income Tax Department also released provisional figures for Direct Tax collections in the Financial Year 2023-24, as of September 16, 2023, showing a significant upswing in net collections, indicating a strong fiscal performance. The net collections have soared to an impressive Rs 8,65,117 crore, a substantial increase from Rs 7,00,416 crore recorded during the corresponding period in the previous fiscal year (FY 2022-23). This remarkable increase reflected a growth of 23.51 percent in tax revenue.