Income Tax Current Affairs - 2020

Pending Income Tax Refunds of Rs 62,361 crore paid to a total of 20,44,597 Taxpayers from 8th April to 30th June

Not only to health and freedom of movement, but the COVID-19 pandemic has also made a much larger financial impact on the economy for individuals and business entities (including MSMEs) across the world. Between 8th April to 30th June 2020 which had a total of 56 weekdays (Monday to Friday), the Income Tax Department of India has made 76 tax refunds per minute.

In total, more than Rs 62,361 crore has been refunded to Individual Taxpayers and Business Entities during this time period.  The complete Rs 62,361 crore of refunds were directly transferred into the bank accounts of the taxpayers.

19,07,853 Individual Taxpayers were paid a refund amounting to Rs 23,453.57 crore while 1,36,744 Business Entities were refunded a total of Rs 38,908.37 crore.

Background

On 8th April 2020, the Department of Revenue (under Union Ministry of Finance) issued a press note under which for Individual Taxpayers-all pending income tax refunds of up to Rs 5 lakh were asked to be refunded,  while for business entities-GST and Customs Refunds pending were also asked to be refunded to the Income Tax Department for providing immediate financial relief.

Finance Minister launched instant Aadhaar based E-KYC

On May 27, 2020, the Union Finance Minister Nirmala Sitaraman launched instant Aadhaar based E-KYC.

Highlights

The facility will be available for PAN applicants that possess valid Aadhaar number. They should also have a mobile number registered with Aadhaar. The process of allotting PAN is paperless and is also free of cost.

Union Budget

The instant Aadhaar based E-KYC was introduced by the Finance Minister in the Union Budget 2020-21. She announced that a system will be brought in that will instantly provide PAN without the requirement of filling up of application form.

About PAN

PAN is Permanent Account Number. It is a 10-digit alpha numeric number that is issued by Income Tax Department. It enables income tax department to link the transaction of the person with the department. The transactions include TDS, TCS, tax payments, income returns, correspondence, specified transactions, etc.

It is now mandatory to provide PAN on return of income. Also, it was made mandatory to provide PAN for all challan payments since 2005.