Everyone is aware that an individual has a certain amount of tax to be paid according to their income. When this amount paid to the Government is more than the liable amount, they are eligible to file for the income tax refund.
Steps For Income Tax Refund: The Central Board of Direct Taxes (CBDT) granted refunds of more than ₹ 1,18,324 crore to more than 33.54 lakh taxpayers between 1 April 2020 and 29 September 2020. 31,75,358 instances saw the issuance of itr refunds totaling ₹ 32,230 crore, while 1,78,540 cases saw the issuance of corporation tax refunds totaling ₹ 86,094 crores ( source: tweet on September 30, 2020, the CBDT).
When you have paid the government more tax than your actual tax obligation, you are eligible to get an ITR. This typically occurs when a taxpayer’s advance tax, self-assessment tax payment, and/or TDS deduction are greater than their overall tax liability for the financial year.
When you file your income tax notice, you can receive this refund (ITR). At this time, the last date of ITR is July 31, 2022.
Documents Required for Filing ITR
Getting ready to file your income tax return? Make sure you have these essential documents handy:
- Your PAN and Aadhaar cards: These are your primary identification and tax-related documents.
- Form 16: If you’re a salaried employee, this document from your employer details your income and taxes deducted.
- Bank statements: These show your income, expenses, and transactions throughout the year.
- Investment proofs: Keep receipts for investments like insurance policies, mutual funds, and tax-saving options.
- Home loan statements: If you have a home loan, you’ll need details of the interest paid.
- Rental income details: If you earn rent, have the necessary paperwork ready.
- Capital gains statements: If you sold any assets like stocks or property, you’ll need these documents.
- Donation receipts: Proof of charitable donations can help reduce your taxable income.
- Interest certificates: These are for interest earned from bank deposits, fixed deposits, etc.
Two Ways To File Income Tax Refund
Got a tax refund coming your way? Here are two methods to claim it:
Online Filing (Faster & Easier):
- Log In: Head to the Income Tax e-filing website and log in with your PAN and password.
- Navigate to ‘File Income Tax Return’: Use the menu options to find ‘File Income Tax Return.’
- Choose the Right Year: Select the correct assessment year based on the financial year for which you’re filing.
- Select Your Filing Status: Indicate whether you’re filing as an ‘Individual’ or another category.
- Pick Your ITR Form: Choose the appropriate ITR form based on your income sources.
- Reason for Filing: Select the reason for filing your return, such as exceeding the basic exemption limit.
- Review & Verify Pre-Filled Information: Check the pre-filled details like PAN, Aadhaar, and bank information for accuracy.
- Complete the Filing Process: As you move through the steps, disclose your income, exemptions, and deductions. Review summaries, confirm details, and make any necessary tax payments.
- E-verify Your Return: This crucial step verifies your filing within 30 days. You can use Aadhaar OTP, EVC, net banking, or sending a physical ITR-V copy.
Looking for an easy way to compute your taxes? Try our income tax calculator. The salary income tax calculator is perfect for salaried individuals.
Offline Filing:
This method involves downloading the ITR form, filling it out manually, and submitting it. While less convenient, it’s an option:
- Download the ITR Form: Visit the Income Tax Department website and download the form for the relevant year.
- Fill Out the ITR Form: Provide accurate details about income, deductions, and tax liability following the instructions.
- Gather Supporting Documents: Collect documents like Form 16, TDS certificates, and financial statements to support your information.
- Calculate & Pay Tax: Calculate your tax liability and pay any outstanding dues before filing.
- Validate the Form: Double-check the form for accuracy and completeness.
- Generate JSON File: Using the provided utility, generate a JSON file of your completed ITR form.
- Submit the ITR Form: Upload the JSON file to submit your return.
- E-verify Your Return: Similar to online filing, use Aadhaar OTP, net banking, or EVC for verification.
Eligibility Criteria For ITR Refunds
There are many cases where one is eligible for Income tax refund. Here are a few instances where ITR refunds are possible:
- If the amount of tax you have already paid on the basis of self-assessment exceeds the amount of tax due on the basis of normal assessment.
- In the event that the tax deducted at source (TDS) from your salary, dividends, interest on stocks or debentures, etc., is greater than the tax due based on a regular assessment.
- If a mistake in the assessment procedure results in a reduction in the tax due based on regular evaluations.
- The same income is subject to taxation both in India and in a foreign nation with whom the Indian government has a double taxation avoidance agreement.
- If you have unreported investments that provide tax benefits and deductions.
- If you discover that your tax paid amount is negative after taking into account your deductions and the taxes you’ve already paid. The simplest way to request a tax refund is to disclose your investments in Form 16 (such as life insurance premiums paid, rent that has been paid, investments in equity/NSC/mutual funds, bank FDs, university fees, etc.) and provide the required documentation. You must complete Form 30 if you failed to do so and have been paying additional taxes that you believe you might have avoided.
Conclusion:
One must be confused while filing income tax refund, paying taxes, or involving in any activities including tax services. For them, Vakilsearch is a one-stop solution. Read through the articles to understand and talk to legal experts about various services those mentioned above.
Also, Read:
