India’s net direct tax collections grew 21.8% to ₹9.57 lakh crore by October 9, surpassing over half of the Budget estimates for this year, with personal income tax revenues rising 32.5% and corporate taxes increasing 12.4%.
While tax refunds amounting to ₹1.5 lakh crore have been remitted to taxpayers so far, some refunds are being withheld on the basis of pending tax demands from the past that taxpayers are being given a chance to address. Moreover, challenges with validating bank accounts of about 35 lakh taxpayers, who may have provided incorrect bank branch codes, are also posing a hurdle, Central Board of Direct Taxes (CBDT) chairperson Nitin Gupta told The Hindu.
For refunds of up to ₹5,000, the Income Tax (IT) department is not restricting payouts. However, over that threshold, taxpayers are being informed if there are any outstanding tax dues. On tax demands in some cases being raised from as far back as 2010-11, Mr. Gupta indicated these could be legacy cases from the time around 2011 when the department switched from using registers to an online system for recording assessment orders.
