Pending Income Tax refunds for FY 2020-21 to be processed by April 30

In good news for taxpayers awaiting income tax refunds for the financial year 2020-21 (AY 2021-2022), the Central Board of Direct Taxes (CBDT) said that the pending refunds would be processed by April 30, 2024.

The CBDT, in a circular issued on March 1, 2024, has asked individuals to check their email regularly for any intimation from the Income Tax Department. The mail will have details about the tax refund, if any, payable to them.

When taxpayers file their tax return to the Centralised Processing Centre (CPC) within a specified period, the IT department sends an intimation notice under Section 143 (1) of Income-tax Act, 1961. Receiving an intimation notice means that the filed ITR (Income Tax Return) has been successfully processed, followed by credit of refunds.

Many taxpayers who filed their returns on time are still waiting for the processing of their ITR for income related to FY 2020-21 (AY 2021-22).

In a circular, CBDI said, "It has been brought to our notice that due to certain technical issues or for other reasons not attributable to the assesses concerned, several returns for assessment year (AY) 2021-22, which were otherwise filed validly, could not be processed under sub-section (1) of section 143 of the Act.

Consequently, intimation regarding processing of such returns could not be sent within the timeframe prescribed under sub-section (1) of section 143 of the Act. This has led to a situation where the taxpayers are unable to get their legitimate refund in accordance with provisions of the Act, although the delay is not attributable to them."

Meanwhile, the deadline for the updated ITR for 2021-21 is March 31, 2024. What is an Income tax refund?

Income Tax refund is a refund initiated by the IT department if the taxpayer pays more taxes than the actual due either by way of TDS or Advance Tax or TCS or self assessment tax.