Finance Min may go slow on Income Tax refunds

Amid fears of slowdown in tax collection in the current fiscal, the Finance Ministry today indicated that it may go slow on disbursement of pending income tax refunds.

The indication was given by Revenue Secretary Sunil Mitra at the annual conference of chief commissioners and directors general of income tax here.

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"The Board's (CBDT) proposal to clear all pending refunds of the assessment years 2010-11 and 2011-12 will require to be moderated in keeping with the actual performance in direct tax collections," he said.

The revenue department is apprehending a slowdown in revenue collection on the back of rising inflation and moderation in domestic economic growth, which according to the RBI is likely to come down to 8% from 8.6% in 2010-11.