ITR submitting: Five revenue tax refund guidelines you need to know

ITR refund: Due date for revenue tax return (ITR) submitting is thirty first July 2023. Who is entitled to get a refund, what are the taxation guidelines of ITR? And learn how to declare your refund? In this text, I want to talk about numerous features of revenue tax refund underneath the Income Tax Act.

1)When you’re entitled to get an revenue tax refund 

A taxpayer is entitled to assert an revenue tax refund when the taxes paid on his behalf are greater than his tax legal responsibility. The taxes paid by and on behalf of the taxpayer consists of tax deducted at sources (TDS), tax collected at supply (TCS) in addition to taxes paid by the taxpayer himself like advance tax, and self-assessment tax.

In case you’re entitled to a refund on account of extra taxes paid over your precise legal responsibility, the refund doesn’t come robotically however you need to file your ITR for claiming it. While submitting your ITR for claiming a refund, please confirm that the tax credit score is seen in type no. 26AS. It is advisable not solely to confirm the main points of all of the tax credit accessible to you but in addition all of the incomes that are proven Annual Information Statement (AIS). Since the revenue tax refunds are straight credited to your checking account. I’d advise you to make sure that the checking account is validated whereas submitting the ITR.

2)How to assert an revenue tax refund?

While submitting your ITR for claiming the revenue tax refund, you need to embrace all of your revenue and declare numerous exemptions and deductions accessible to you. In case the taxes deducted/collected in addition to paid by the taxpayer exceed the tax legal responsibility labored out whereas submitting the ITR, you’ll get the refund after your ITR is processed. Please word that the refund doesn’t come immediately however will probably be issued to you after the main points of taxes already paid are verified by the revenue tax division from the data accessible with it.

3)How to assert your revenue tax refund in case you have didn’t file your revenue tax refund after the final date?

In case you might have didn’t file your ITR by thirty first December which is the final date for submitting your ITR, you may nonetheless declare your refund as per round no. 9/2015 for six evaluation years topic to complying with sure circumstances. To declare a refund underneath this round, you need to first file an software for condonation of delay and as soon as the delay is condoned you may file the ITRs on-line for the final six years citing reference of the order granting condonation.

4)Taxability of revenue tax refund

There is a few confusion concerning the taxability of the quantity acquired after the declare of refund is processed. As far because the taxability of the quantity acquired is worried, the online quantity of extra tax paid isn’t taxable in any respect. As per the provisions of the revenue tax act, the taxpayer is entitled to obtain curiosity in respect of extra of advance tax and TDS/TCS over the online tax legal responsibility. The curiosity is payable from 1st April of the monetary yr following the yr for which the ITR is filed. The taxpayer is entitled to get full curiosity if the ITR is filed by the due date for many of the circumstances i.e. 31 st July. In case there’s a delay in submitting a declare for refund attributable to the taxpayer, the taxpayer isn’t entitled to curiosity for such delay. So should you fail to file the ITR by the due date, you’ll not get the curiosity from 1st April until the month of submitting of the ITR. The taxpayer is liable to pay tax on the curiosity on the revenue tax refund acquired. Please word that the final date to file your ITR is thirty first December of the following yr past which you can’t file your ITR.

5)When your refund due could be withheld and learn how to declare

The revenue tax legal guidelines have provisions authorising the revenue tax division to regulate the quantity of refund due in opposition to any excellent demand of earlier years. The regulation additionally gives that the revenue tax division has to offer an intimation earlier than such an adjustment is made. This provision isn’t complied with in all circumstances. If your refund has been wrongfully has been adjusted, you may declare the identical by elevating a grievance on the revenue tax web site after logging into your account.

Though the revenue tax division has powers to regulate the refund due in opposition to any excellent demand of earlier years the identical privilege isn’t prolonged to the taxpayer to regulate any revenue tax refund due for any earlier years in opposition to tax payable for subsequent years.

Balwant Jain is a tax and funding professional and could be reached at jainbalwant@gmail.com and @jainbalwant his Twitter deal with.

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Updated: 06 Jul 2023, 07:31 AM IST