Government can provide tax refunds even if ITR not filed in time, giving significant relief to small taxpayers and retirees.
When ITR not filed on time, taxpayers usually stand to lose their right to a refund. But today, a government panel suggests a major shift. The idea is to assist small taxpayers in receiving refunds, even if they have missed the filing deadline.
Present Rule Is Too Harsh About if ITR Not Filed in Time:
Currently, if ITR not filed within time, refund cannot be claimed by the taxpayer. Even if tax already paid, refund is blocked. This provision puts a burden on small taxpayers, senior citizens, and those with limited income.
What the Panel Wants:
The committee recommends eliminating this rigid rule. They wish to grant refunds even when ITR not submitted within time, particularly for individuals having income below the taxable threshold. The complete ITR procedure could be replaced with a new, straightforward form. This would ease the return of withheld tax without hassle.
Who Will Benefit?
This proposal is particularly beneficial for:
Senior citizens with interest income and TDS withheld.
Small job workers or freelancers who are not exactly aware of tax regulations.
Low-income individuals who usually do not cross the tax threshold but are still charged TDS.
These individuals typically do not have any tax payable. However, they miss refunds when ITR not submitted in time. This revision will rectify the same.
Positive Economic Impact:
Facilitating refunds without timely submission of complete ITR can enhance the trust of the people in the tax system. It also lessens the compliance burden on those who are already weak financially. It also decreases unclaimed amount of TDS.
A Simpler Process Ahead:
The panel also proposes a new procedure. Instead of a complete ITR, there should be a basic declaration form that is acceptable in case of refund. This will be attached to authentic tax documents. It will be time-saving and decrease paperwork.
Missing the deadline for ITR has been a perennial issue. But with this proposed change, individuals will no longer lose their refunds simply because the ITR not filed within time. If it’s accepted, this move can provide much relief to thousands of small taxpayers throughout the nation.
