Refunds up to Rs. 5000/- in non-CASS cases to be made without outstanding demand adjustments u/s 245 during FY 2016-17 – CBDT

No. 312/ 67/ 2016-0T
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes

New Delhi, Dated 14^th July 2016

Office Memorandum

Sub: – Expeditious disposal of refunds in non-CASS cases – relaxation of requirements of Section 245 of the I. T. Act 1961 – reg.

With a view to provide relief to small taxpayers. it has been decided that refunds up to Rs. 5,000/-, as also refunds in cases where arrear demand is up to Rs. 5,000/- in non-CASS cases, may be issued expeditiously without any adjustment of outstanding demand under Section 245 during the Financial Year 2016-17.

2. The refund pendency data has revealed that there are a large number of pending claims of refunds upto Rs 5,000/- involving non- CASS cases for Assessment Years 2013-14, 2014-15 and 2015-16. It is requested that the Assessing Officers be directed to issue refunds expeditiously in such cases without making any adjustment of arrear demands under Section 245. Similarly, the non­ CASS cases for these assessment years where refund claim is more than 5,000/- but the outstanding demand is Rs.5,000/- or less, may also be processed for expeditious issue of refund without making any adjustment under Section 245.

3. It is also found that there are several refund claims in respect of which notices have been issued proposing adjustment of outstanding demand under Section 245, but no response has been received from the taxpayer even after expiry of 60 days, as against the stipulated period of 30 days. I am directed to convey that such cases be treated as though the taxpayer had “no-objection” to the proposed adjustment and accordingly returns may be processed expeditiously and balance refund be issued to the taxpayer, if any, after adjustment of outstanding demand along with applicable interest.

4. The above exercise may be completed and a compliance report be sent to the Board by 29th July, 2016

5. This issues with the approval of Chairman, CBDT.

Yours faithfully

(Salil Mishra)
Director (OT&WT)