The income tax department has made refunds of Rs 127,000 crore so far in the current financial year through an automated refund system. Finance Secretary Ajay Bhushan Pandey Friday said the refunds have been sent to bank accounts of individuals and businesses.
Out of 1.27 lakh crore refunds, Rs 34,532 crore were issued as refunds to Individual taxpayers in about 37.22 lakh cases while Rs 92,376 crore were issued as refunds to 1,92,409 in corporate tax cases.
The income tax department has now a fully automated system of refunds payment directly going into the bank accounts of the taxpayers without any manual interface or intervention.
The Finance Secretary said: "This is a quick refunds payment system which is fully automated and completely transparent. The income tax department has created a DBT (Direct Benefit Transfer) like architecture to execute quick refunds transfer directly into the bank account of the assessee in a seamless manner and at a larger scale."
He said that it is through this quick refunds process that the income tax department in the last few months have been able to issue refunds online directly into the bank account of the taxpayers to facilitate liquidity during the trying times of COVID-19.
"We are monitoring the progress of the quick refunds system weekly and release refunds data in the public domain. This helps us build trust between the taxpayers and the I-T department besides facilitating liquidity to the taxpayers," Pandey said.