The Income Tax Department has announced that it will release all pending income tax refunds upto Rs 5 lakh immediately to help ease Covid-19 burden. The move will benefit around 14 lakh taxpayers across India.

The I-T department will also release all GST and custom refunds to around 1 lakh business entities, including micro, small and medium enterprises.

"In the context of the Covid-19 situation and with a view to provide immediate relief to the business entities and individuals, it has been decided to issue all the pending income-tax refunds up to Rs 5 lakh, immediately. This would benefit around 14 lakh taxpayers," an official statement said.

"It has also been decided to issue all pending GST and Custom refunds which would provide benefit to around 1 lakh business entities, including MSME. Thus, the total refund granted will be approximately Rs. 18,000 crore," it said.

Finance Ministry is also planning a stimulus package of more than 2 lakh crore rupees, for giving a fillip to the economy. Small businesses, MSMEs and the aviation sector are set to get a major chunk of this stimulus package.