Tax refund is the amount paid back by government to a tax payer who has paid excess amount of Income Tax.
Are all taxpayers eligible for IT refund?
No. As mentioned above, only tax payers who have paid excess tax can get IT refund.
How one pays excess tax?
For an individual earning salary from his employer, and when employer does a TDS and the TDS amount is greater than the actual tax to be paid by the individual.
Can I get back the excess tax paid?
Of course yes, As mentioned above, government pays back the excess tax.
How do I get a refund? / What makes me eligible for a refund?
The refund amount is calculated when an individual files his IT returns. Just tax filing will make the individual eligible for tax refund if he/she has paid excess tax.
Is it true that if tax returns are not filed within time, I will not get refund
No, this is not true. It is not mandatory to file returns on time to get a refund if eligible. But the later you file the later it is going to take to get refund.
How long will it take for tax refund?
In ideal cases the amount will be refunded within 12 months time. Though it is dependent upon lot of factors like refund amount, whether there is a change in jurisdiction, time of tax filing(the earlier you submit the earlier you receive refund for a particular FY)
Will IT department give me interest for the refund amount?
Yes and No.
Yes, if the tax refund amount is greater than 10% of the actual IT to be paid. No, the tax refund amount is less than 10% of actual IT to be paid.
How will I receive the refund amount?
In major towns and cities tax department credits the amount directly through ECS. So it is essential to maintain the same bacnk account if you are eligible for a refund. I nother locations tax department sends the refund order with your bank account mentioned in the back side of the refund order. Refund order is similar to a cheque sent by tax department. The refund order can be deposited to any of your bank account after signing on the backside of the refund order.
What if refund amount is not received?
If tax refund amount is not received within 12 months from the date of filing the tax return below are the options to do:
- Visit the tax return office and follow up.Write a letter to Income Tax officer along with the photocopies of acknowledgement of tax return.
- If not redressed, then write a letter to the jurisdictional Chief Commissioner of the Income Tax with a copy to the Grievance Cell and the concerned Income Tax Officer. Also enclose copies of previous written communication to IT department.
- If still not redressed file a RTI online at: http://www.rtiindia.org/forum/10393-income-tax-return-refund.html
- Alternatively you can consult a Auditor and ask him to follow up on your refund amount. The procedure is the same and yes of course you will have to pay his/her consultation charges.
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