Get ready for taxes: Everything you should know about refunds

Get ready for taxes Everything you should know about refunds

Get ready for taxes: Everything you should know about refunds

Ever heard of getting a refund on your taxes? A tax refund is the return of an excess amount that you have paid to the Government in the past year. In short, it means that you have paid more tax money than your actual liability. Instances of extra tax payment usually happen when there is an advance tax payment, self-assessment tax or TDS deductions are higher than the actual liability.

So today’s blog is to keep you updated with the A-to-Z of tax refunds!

  • Procedure to claim:

There is no separate procedure to claim the refunds, you can simply claim it along with your usual tax filing. Also do not forget to electronically verify your return through Adhara or ensure a physical verification by posting the signed ITR-V i.e. acknowledgment to Centralizes Processing Center (CPC) within 120 days

  • Interest Payable by the government:

If any of you have ever received a tax return, you might have noticed that it is slightly higher than the actual amount claimed by you in the filing. The reason for this is the interest payable to you by the Government on your tax refund amount. It is mandatory for the Income Tax department if it is more than 10% of the paid tax.
Section 244(A) of the Income Tax Act, 1961-2018, deals with tax refunds and makes provisions for a 0.5% rate of interest per month.
However there are certain provisions under the section that are necessary to be complied with for claiming the interest, these can be read under Section 244(A)(1)(a, aa and b).
If there are any queries or differences, the same can be raised online with a request for ratification.

  • Refund Adjustment:

It is also possible that you may not get the full claimed refund amount at once. The department may adjust this refund amount if you have any taxes due for the previous year and a refund is due in the next year.
However, the department cannot do so without issuing a prior notice under section 245 of the Income Tax Act, 1995 mentioning its intentions of adjustment with instructions of how you can respond to the notice. A time span of 30 days is available to you to respond and if no response is given, the department can go ahead with the adjustment.
If you want to raise any objection, you can do so by responding online through your account

  • Refund Status:

You can check the status of your refund by following the below process:

  1. Go to Refunds Page
  2. Enter PAN, assessment year and submit it
  3. Refund Status will be displayed on the next screen
  4. Refund payment details can also be accessed through 26AS in ‘Tax credit statement’

Tax Refunds can get tricky if you aren’t aware of the details.

At Boston Financial, you will be able to access all information and assistance that you need to be updated with refunds!
Get in touch with us on the below details to know more about our compliance and tax management services here
Contact us:
info@bostonfagroup.com
Bangalore: +91 80 2572 4800
USA: +1 6099377291
Pune: +91 7420061235
Visit our website: www.bostonfagroup.com

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