The Central Board of Direct Taxes (CBDT) said that it has issued tax refund of Rs 26,242 crore to over 1.6 million assessees since the start of April as per its plan to process refunds quickly and improve liquidity of taxpayers. The government has refunded Rs 14,632 crore to personal income taxpayers and Rs. 11,610 crore to corporates. More than 1.5 million personal income taxpayers and 102,392 corporate taxpayers benefited from the drive, CBDT said in a statement. The government has expedited the process of clearing tax refunds to improve payers’ liquidity amid an unprecedented lockdown that has brought the economy to a grinding halt.
Last week, the government had announced a 25 per cent cut in the existing rates of various taxes collected or deducted at source (TCS or TDS) by individuals and businesses behalf of the government at the time of transactions. The move was aimed at giving a liquidity support of Rs 50,000 crore to people and businesses.