Income Tax department holds back Rs 20,000 crore in tax refunds to firms, says report

The Income Tax department is yet to release tax refunds worth about Rs 20,000 crore to various firms that include both, private as well as public sector units, reported Business Standard,citing sources aware of the matter.

The reasons cited included discrepancies in the crediting of TDS, carry forward losses, and pending tax demand for the previous years, the sources told the paper.

“We have received communication from the I-T department regarding the mismatch in TDS credit. The issue is pending, and until it is settled, the department may not pay the claims,” a chartered accountant was quoted as saying in the report.

According to the report, the sources within the department said that refund claims of Rs 100 crore and above might be issued in the first week of April. This, the report added, will include a refund of Rs 6,000 crore claimed by a state run company.

The development, according to the report, comes as the government, which is struggling to meet the fiscal deficit target, has pinned hopes on direct tax collection to meet the shortfall expected from GST collection and other revenue sources.