E-mails sent to assesses to seek clarification on refund shouldn't be interpreted as harassment: CBDT

New Delhi, Apr 21 (KNN) The Central Board of Direct Taxes (CBDT) on Tuesday said e-mails sent to assesses to seek clarification on refund should not be interpreted as harassment.

''E-mail seeking clarification from all those who are entitled to get tax refund but also have outstanding tax to pay cannot be misconstrued as harassment,'' CBDT said in a statement.

This statement came in the response to various social media posts alleging that the Income Tax Department is pursuing recovery proceedings and using arm-twisting methods by adjusting outstanding demands of the start-ups.

So far, CBDT, has said that computer-generated emails have been sent to almost 1.72 lakh assesses. These include all classes of taxpayers – from individuals to HUF to firms, big or small companies including start-up.

''This means no one has been singled out,'' it added.

Since April 8, the Central Board of Direct Taxes (CBDT) has been fast-tracking refund payments to help taxpayers in the COVID-19 pandemic situation and has till date issued nearly 14 lakh refunds involving an amount of over Rs 9,000 crore to various taxpayers including individuals, Hindu Undivided Families (HUFs), proprietors, firms, corporate, start-ups, and Micro, Small and Medium Enterprises (MSMEs).

The CBDT further said that these emails are part of the faceless communication which protects public money by ensuring that refunds are not released without adjusting against outstanding demand, if any.

''These emails are auto-generated u/s 245 of the I-T Act in refund cases where there is any outstanding demand payable by the assesses. In case the outstanding demand has already been paid by the taxpayer or it has been stayed by the higher tax authorities, the taxpayers are requested through these mails to provide the status update so that while issuing the refund, these amounts are not held back and their refunds are released forthwith,'' it added.

An opportunity is provided by the department to the assesses to either clear the demand or intimate the status of said demand to the I- T department. Invariably, such communication is made by the department by sending an e-mail to the assesses informing it of the quantum of outstanding demand and providing an opportunity to pay the demand or respond with evidence regarding payment of the same if already made, or update the status of any other action on it," it said.

The CBDT said that the assesses are required to furnish details of the pending demand, whether it has been paid or has been stayed by any appellate/competent authority so that the department could keep the same in abeyance and do not deduct this amount from refund.

"Thus, following the existing procedure of recuperation of outstanding demand, similar mails have also been sent to 1.72 lakh assesses including start-ups to intimate to the I- T department, the status of the demand outstanding and whether it has been stayed by the competent authority so that appropriate action can be taken for release of refunds without delay to the start-up," it added.