What is the deadline for getting tax refunds?
3 min readWhat is the deadline to obtain a tax refund? I’ve not acquired a refund until now for FY 2021-22 or AY 2022-23. What steps ought to I take subsequent?
—Name withheld on request
As per the provisions of Income-tax Act, the place a return of revenue is filed, it’s verified and processed electronically by the income-tax authorities. Upon processing, an intimation below 143(1) of the Act is mostly issued to the taxpayer inside 9 months from the tip of the monetary yr (FY) by which the return is furnished, accepting the returned revenue / figuring out any extra tax refund or demand, because the case could also be.
Accordingly, for FY2021-22, assuming the return is filed throughout FY2022-23, such intimation ought to usually be acquired by 31 December 2023.
You might verify the standing of the processing of the tax return out of your income-tax e-filing account. In case your return is already processed, chances are you’ll verify the intimation below part 143(1) issued to you, to find out if the declare of refund has been accepted or any discrepancy exists vis-à-vis the return filed by you.
Once the return is processed and refund decided, the eligible refund (if any), could also be anticipated to be acquired sooner or later, except the refund is proposed to be adjusted with every other excellent calls for/ every other technical points together with non-linking of checking account, refund credit score failure, and many others. by which case appropriate corrective motion together with submitting a web-based grievance could also be thought-about.
Also, in particular instances, the tax division can maintain on to the tax refund for assembly particular circumstances.
I’m a salaried particular person within the 30% tax bracket and must pay ₹2.5 lakh in taxes. If I switch ₹2.5 lakh to my the checking account of my spouse, who’s a homemaker, can I declare tax exemption on this quantity?
—Name withheld on request
As per the provisions of part 56 of the Income-tax Act, 1961 (‘the Act’), the place a person receives present of any sum of cash/ies, combination worth of which throughout a yr exceeds ₹50,000, the identical is taxable within the palms of the recipient particular person below the top of ‘Income from Other Sources’. However, if the present is acquired by the person from a specified relative (which incorporates the partner), the identical is absolutely exempt from taxation within the palms of recipient particular person.
To be certain, there is no such thing as a exemption for the quantity gifted within the palms of the transferor. Hence, the cash transferred by you to your spouse’s checking account as a present won’t qualify for any tax exemption in your palms.
As per provisions of part 64 of the I-T Act, any revenue which arises to the partner of a person from property transferred with out sufficient consideration (whether or not instantly or not directly) by such particular person, being the transferor, is clubbed and taxed within the palms of the transferor. Accordingly, incomes earned by your spouse from the cash gifted by you shall be clubbed in your revenue and taxable in your palms.
Parizad Sirwalla is accomplice and head, world mobility companies, tax, KPMG in India.
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Updated: 11 Jun 2023, 10:45 PM IST
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