The government has streamlined the process of claiming income tax refunds, making it easier for citizens to reclaim their hard-earned money. To claim an income tax refund, you must file your income tax return (ITR) correctly, and on time. The last date for filing ITR for is July 31.
Watch this video to Get your refund fast:
What is tax refund
An income tax refund is issued when a taxpayer has paid more taxes during the financial year than their final assessed liability. This refund is typically triggered by either paying compulsory advance taxes or experiencing TDS deductions on income.
For instance, Santosh, a 26-year-old IT professional from Pune projected investments at the start of the year were Rs 2,00,000, whereas his actual investments at the end of the financial year were Rs 3,00,000. He was eligible for a TDS refund because he had paid a higher TDS amount throughout the year based on the lower investment declaration value. Since his actual investments were higher, he received a refund on the excess TDS sum paid.
To be eligible for an income tax refund, you must meet one of the following conditions:
Advance tax payments: If your total advance tax payments exceed 100 per cent of your actual tax liability for the financial year.
TDS payments: If your TDS payments in the financial year exceed your final tax liability after regular assessment.
Last-minute tax savings: If you have made last-minute tax-saving investments.
Error in assessment: If you have paid excess tax due to an error in assessment.
What is the refund process?
Access the Income Tax e-Filing Portal: You need to sign up or log in to the Income Tax Department’s e-filing portal.
File your income tax return (ITR): Use the appropriate ITR form based on your income sources and profile. You can check your TDS details under the ‘Taxes Paid and Verification’ section.
Verification of ITR: After filing your ITR online, you need to verify it. Verification can be done electronically using methods like Aadhaar OTP, net banking, etc.
Processing by Income Tax Department: Once your ITR is successfully verified, the Income Tax Department will process it. They will verify the details provided and calculate any refund due to you.
Refund status: The status of your refund can be checked online on the e-filing portal. If your refund is approved, it will be issued by the Income Tax Department through direct deposit into your bank account.
Timeframe: The time taken for processing and disbursing the refund can vary. Typically, if there are no discrepancies, refunds are processed within a few weeks to months after filing.
You can contact team of Tax Experts to file Your ITR at 9150010300 or visit www.legalsahayak.com
Experts said, “While filing ITR, which results in tax refund, taxpayers must ensure that details of bank account furnished are pre-validated on income tax portal. Refunds will be credited to the validated bank account after processing of the return by the Centralized Processing Centre. If the bank account is not validated on the income tax portal, refund will not be credited to his bank account.”
Visit www.cagurujiclasses.com for practical courses
