I-T dept holds back Rs 20,000 crore in tax refunds to private, PSU firms

High-value refunds of corporates, public sector undertakings likely to be issued in April

The income-tax (I-T) department has decided not to release many high-value refunds claimed by corporates and public sector units for the financial year 2016-17, citing reasons such as discrepancies in the credit of tax deducted at source (TDS), carry forward losses, and pending tax demand for the previous years, said two sources privy to the development.

Refund claims amounting to about Rs 20,000 crore would be held back until the respective issues were resolved, the sources said. The amount makes up 1.7 per cent of the Budget estimate of direct tax collection at Rs 11.5 trillion for the current financial