Tax Update: Many taxpayers who filed their Income Tax Returns (ITRs) for the financial year 2020-21 (Assessment Year 2021-22) are still waiting for their refunds. This delay has left numerous taxpayers in New Delhi and across the country in a bind.
However, there’s good news on the way regarding Tax Update! The Central Board of Direct Taxes (CBDT) has recently announced that those awaiting their old income tax refunds won’t have to wait much longer. According to a circular issued on March 1, the CBDT has committed to releasing pending tax refunds for the financial year 2020-21 by April 30, 2024.
How will Taxpayers get notified regarding Tax Update?
For taxpayers eagerly anticipating their refunds, it’s essential to stay vigilant and keep an eye on their email inboxes. The Income Tax Department is actively communicating with taxpayers via email, providing updates on the status of their refunds.
The circular from CBDT highlighted technical issues and other reasons that have caused delays in processing valid returns filed for the assessment year 2021-22. As a result, taxpayers have been unable to receive their rightful refunds on time, despite being blameless for the delay.
Once a taxpayer submits their return request to the Centralized Processing Center within the stipulated timeframe, the Income Tax Department typically issues an intimation notice under section 143(1) of the Income Tax Act, 1961. This notice confirms successful processing of the filed ITR. The Income Tax Department typically disburses any owed refund afterwards.
However, due to delays in processing many ITRs for the financial year 2020-21, numerous taxpayers are still awaiting their refunds.
All important information regarding income tax refunds will be communicated via intimation email from the Income Tax Department. It’s noteworthy that the department has streamlined its refund issuance process, with taxpayers often receiving updates on ITR processing shortly after filing. Following ITR processing, taxpayers receive an intimation email detailing their refund amount, which is then deposited into their bank accounts within days.
