New Delhi, April 8: Income tax refunds of upto Rs 5 lakh, filed by individual taxpayers, will be released immediately, said the Ministry of Finance in a statement on Wednesday. The Income Tax (IT) Department has approved the disbursal of the refunds, the Ministry stated. The Goods and Service Tax (GST) and custom refunds, filed by companies, would also be released amid the COVID-19 outbreak, it added. COVID-19 Live Tracker: Check The Spread of Coronavirus in All Parts of India.

The decision to release the GST and custom refunds at the earliest would benefit around one lakh business firms, including those falling under the micro, small and medium enterprises (MSMEs) category.

On the other hand, the IT Department's decision to release I-T refunds would aid nearly 14 lakh individuals, including those employed under the organised sector along with the self-employed persons. The disbursal comes amid a state of lockdown that has raised economic challenges for a large section of the population.

"IT Department to release all pending income tax refunds up to Rs 5 lakhs immediately,around 14 lakh taxpayers to benefit. All GST and custom refunds also to be released, to provide benefit to around 1 lakh business entities including MSMEs," said the statement issued by Department of Revenue, Ministry of Finance.

Update by ANI

The decision follows an array of other measures adopted by the government to minimise the plight of salaried individuals. The Finance Ministry had unveiled a Rs 1.7 lakh crore economic relief package, which included direct cash disbursals to the bank accounts of registered construction workers.

The Reserve Bank of India (RBI) had subsequently released a Rs 3.7 lakh crore liquidity stimulus plan, which included a massive reduction in the repo rate and reverse repo rate, which in turn could lead to further grant of loans and slash the interest rates levied.

The Associated Chambers of Commerce and Industry of India (ASSOCHAM) had, in a letter sent to Finance Minister Nirmala Sitharaman, demanded a stimulus package of $200-300 billion which would allow all sectors of the Indian market to absorb the brunt of the coronavirus lockdown.

(The above story first appeared on LatestLY on Apr 08, 2020 06:49 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).