The Ministry of Finance has decided to issue all pending income tax refunds up to Rs 5 lakh, immediately. The move is expected to benefit around 14 lakh taxpayers. In a relief to around 1 lakh business entities including micro, small and medium enterprises (MSMEs), the ministry has also decided to issue all pending goods and services tax (GST) and custom refunds.
A total refund to the tune of Rs 18,000 crore would thus be granted, the ministry said.
The move comes amid the ongoing lockdown as a result of the coronavirus pandemic, which has hit businesses and financial institutions in India and across the world.
Meanwhile, the Associated Chambers of Commerce and Industry of India (ASSOCHAM) on April 8, in its letter to Finance Minister Nirmala Sitharaman, proposed several radical measures and a $200-300 billion stimulus package to cushion the impact of the pandemic-led lockdown on the industry.
Last month, the Reserve Bank of India (RBI) had declared liquidity stimulus measures worth Rs 3.7 lakh crore including a 75 bps cut in repo rate and 100 bps cut in cash reserve ratio.
