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Income Tax Refund

What is Income Tax Refund

The case for Income Tax Refund arises when the tax paid by an individual is larger than the amount of taxes that are supposed to be paid by him/her legally.The sections 237 to 245 under the Income Tax Act have a section on this concept.

Who is eligible for Income Tax Refund?

  • If you have paid the tax in advance and the tax paid through self-assessment is greater than the tax paid through the regular assessment, then the taxpayer will be eligible for an income tax refund
  • If the TDS from your salary is higher than the tax payable after regular assessment of income tax
  • If there is an error in the regular assessment
  • If the same income is taxed in India as well as a foreign country, the taxpayer can file for tax refund since this leads to double taxation
  • If after deductions, the tax paid amount is shown to be negative
  • If the investments that you have made show any form  of tax deductions
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How to get a tax refund in India

Tax-refund can be availed while filing your Income Tax Returns. The date of filing Income Tax is generally on the 31st of July

What amount will I receive in the form of Income Tax Refund

To calculate the Income Tax Returns that you would receive you need first to reckon your total tax liability. If you have paid any extra amount as taxes than the tax liability, you will receive a refund equal to the differences

How can I make the payment for a refund?

Payment for refund can be either done by cheque or will be credited to your bank account.

How can I claim Tax Refund

To file your Income Tax Rund, you'll be required to  fill Form 16 and submit the necessary proofs along with the application form.If you fail to submit Form 16, you will be required to fill form 30

How can Income Tax Refund be tracked

You'll receive a message from the Income Tax Department if your assessing officer has not initiated the refund process

How to get a refund through Direct Transfer

The refund amount can be credited to your bank account through RTGS/NEFT medium. The refund will be initiated by using your ten digit bank account number and MICR code. You can track your refund process through TIN-NSDL website

How to get a refund by cheque

The IT Department will send a cheque by pst payable at your name and you can track it by using the reference number given to you.

Interest payable on delay in the refund process

The Income Tax Department on delays is liable to pay an interest of 0.5% monthly. However, if the duration of delay is attributable to the applicant, the interest will not be paid by the Income Tax Department.

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