Tax Refunds Under Scrutiny: Ensuring Fairness Amid Claims

CBDT Chairman Ravi Agrawal discusses ongoing efforts to ensure accurate tax refunds by analyzing wrongful deductions. Some refunds faced delays due to flagged claims. The department aims to resolve legitimate refunds by December and is actively working to reduce litigation related to direct tax cases.

In an effort to address delays in tax refunds, CBDT Chairman Ravi Agrawal announced on Monday the department's commitment to analyzing wrongful deduction claims. These claims have resulted in delays, but Agrawal reassured that legitimate refunds are expected to be processed by December.

Agrawal explained that some refunds identified as high-value or flagged by the system for deduction issues are being scrutinized closely. Taxpayers have been requested to submit revised returns if necessary, as part of a broader effort to ensure accuracy in refund releases.

The department has already released low-value refunds and is diligently working towards issuing the remaining refunds. Additionally, Agrawal highlighted initiatives to reduce litigation in direct tax cases, noting significant progress in clearing backlogged appeals.

(With inputs from agencies.)