Earlier to help taxpayers' amid the Covid 19 wherein they can be facing disruption in cashflow due to nationwide lockdown, it will on an immediate basis release all income tax refunds amounting to less than Rs. 5 lakh. Further post the notification, on April 14, government came up with the clarification that a total of 10.2 lakh refunds worth Rs. 4250 crore has been released.
Herein it must be noted that the department has not clarified the year so probably all of the pending refunds up to Rs. 5 lakh are being considered for pay out.
Process of ITR Processing
Once the ITR V acknowledgment is sent to the department's CPC wing or through the online route is verified, the department tallies details in Form 16 and form 26 AS are tallied and an intimation under section 143(1) will be sent. This intimation will reflect the refund due to the taxpayer or tax payable by him or her.
What if the ITR is not Processed-
In case your ITR is not processed you can file a grievance with the assessing offer on the income tax e-fling portal and then ask to speed up the process of processing income tax return.
Also, email-from the tax department may be required to be responded to as has been put forth by the department which states that for 1.74 ITRs e-mail responses are awaited.
This email pertain to conciliation with the taxpayer's outstanding tax demand for which response has to be furnished in 7 days time so that the ITR refund can be processed accordingly.
Further, the email is seeking confirmation on taxpayers' details including outstanding demand, bank account and reconciliation in respect of any mismatch.
The CBDT thus has asked taxpayers to check for e-mails and log into their e-filing account and respond to the department's mails for expeditious processing of refunds.