Narendra Modi govt had issued an order for for the immediate clearance of Income tax refunds, The refund of up-to RS 5 lakh will benefit 14 lakh tax payers, the Income Tax Department said on Wednesday. An amount summing up-to Rs 180000 crores of custom refund and pending GST will also be issued to one lakh MSMEs(micro,small and medium enterprises).
The funds are released taking into the account of Covid 19 situation and to provide immediate relief for business entities and individuals hit by the pandemic. Ritesh Kanodia, a partner of Dhruva Advisors told that this is very positive move from the government as the liquidity crisis has been increasing due to the pandemic. The GST related refunds have often hit by technical glitches and the state government were the oned facing the delays.