Chairman of the Central Board of Direct Taxes (CBDT) Ravi Agrawal on Monday said the Income-Tax Department is analysing certain refund claims, particularly those identified as “high-value” or red flagged due to claims of specific deductions. This process has led to a temporary delay in issuing refunds, though legitimate payouts are expected by December.
Asked about the delay, Agrawal said, “We have also written to the taxpayers to file a revised return in case they have forgotten something.”
Low-Value Refunds Released, System Under Continuous Review
Agrawal clarified that refunds for low-value claims are being released. “Low-value refunds are being released. We have analysed and found that some wrong refunds or deductions were being claimed. So, this is a continuous process. We hope to release the remaining refunds by this month or by December,” he told reporters after inaugurating a taxpayers’ lounge at the India International Trade Fair (IITF).
The chairman noted a “negative growth” in refunds, attributing it partly to a decrease in claims even after TDS rates were rationalised. Official data shows refund issuances dropped about 18 per cent to over Rs 2.42 lakh crore between April 1 and November 10.
Focus on Reducing Litigation in Direct Tax Cases
Agrawal also highlighted steps taken to reduce litigation related to direct taxes. “We have taken a lot of steps and our appellate authorities are working overtime to ensure that the pendency is liquidated. During prior years…because of Covid etc., pendency got accumulated, but I may share that this year more than 40 per cent, as compared to last year, disposal has been done in appeals and I think we will end the year with a much, much higher number of appeals disposed of,” he said.
The CBDT chief reiterated that these measures are aimed at ensuring smoother refund processes and reducing delays for genuine taxpayers.