In an initiative to reduce taxpayer grievances and enhance the taxpayer satisfaction, the Central Board of Direct Taxes had issued instructions to Central Processing Center (CPC), Bengaluru and the field officers in December, 2015 to issue refunds of amounts less than ₹ 50,000/- expeditiously.

As a result of the special drive to issue smaller refunds, 18,28,627 refunds below ₹ 50,000/- involving a sum of ₹ 1,793 crore have been issued between 1^st December, 2015 and 10th January, 2016. These refunds relate to Assessment years 2013-14 to 2015-16.

In order to further expedite the process of issue of small refunds, CBDT has also directed CPC-Bengaluru and the field units that refunds up to ₹ 5,000/-, and refunds in cases where outstanding arrears are up to ₹ 5,000/- may be issued without any adjustment of outstanding arrears. Office Memorandum F. No. 312/109/2015-OT dated 14th January 2016, conveying these directions of CBDT is available on the website of the Department www.incometaxindia.gov.in.

Expedited income-tax refunds allow small claims to be issued without adjustment of outstanding arrears for minor amounts. The Central Board of Direct Taxes directed CPC Bengaluru and field officers to expedite refunds below Rs. 50,000 and further instructed that refunds up to Rs. 5,000, and refunds where outstanding arrears are up to Rs. 5,000, may be issued without adjustment of outstanding arrears, as set out in an office memorandum dated 14 January 2016.