Income Tax News: In cases where income tax refunds are delayed for technical reasons, taxpayers will receive relief. Particularly for individuals who have not been reimbursed for the previous four assessment years. By January 31, 2024, the Income Tax Department will have resolved these cases quickly and credited the outstanding balance to the concerned taxpayers’ accounts. The department has issued an order in this respect.
Taxpayers Affected Due to Deadline Expiry
The department claims that because the deadline had passed, many taxpayers’ Income Tax Returns (ITR) could not be processed. Nevertheless, in certain instances, they were unable to be validated because of ITR technical issues. This made it impossible to resolve the taxpayers’ claims for refunds.
Refund delayed because of these factors
- Individuals whose ITR needs to be checked
For some technical reason, the ITR could not be processed - An excess refund has been claimed in the ITI
Expected Timeline for Income Tax Refund Receipt
Refunds in these situations, as per the Income Tax Department, will only be given out if the taxpayer’s ITR calculations and the department’s calculations agree. An email will be sent to the taxpayer notifying them when the refund is approved. They will receive their income tax refund by January 31, 2024. The department has ordered that the ITRs of those who have not received a refund for the fiscal years 2017–18, 2018–19, and 2019–20 be processed first. Following this, the assessment year 2020–21 cases will be addressed.
Income Tax Department’s Nine-Month Window for ITR Processing
The Income Tax Department is required by law to process ITRs and provide refunds within nine months of the fiscal year’s conclusion. For instance, by December 31, 2023, ITRs submitted for the Assessment Year 2022–2023 (FY 2021–2022) will be processed. The tax department was previously granted a year from the end of the fiscal year in which the ITR was submitted.
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