If you have filed your taxes correctly in the past, you are sure to have received a tax refund based on your financial submissions. Tax refunds are something that all of us should be familiar with. For a better understanding of ITR filing, one must be aware of the Indian withholding tax rates.
In Sections 237 to 245 of the income tax returns, the provisions relating to refunds of taxes are discussed. Tax refunds are available when taxpayers have paid more than their actual tax liability. Advance taxes, self-assessment taxes, taxes deducted at source, taxes collected at source, or even foreign tax credits can be used.
Can I Get a Refund if I Qualify?
It is possible for taxpayers who have overpaid tax to claim a refund under Section 238. The following provisions apply to claim eligibility:
- An individual’s income is combined with another person’s, for example, a parent can claim the excess amount if a minor child’s income is combined with his or her parent’s.
- Taxpayers who cannot claim a refund due to unforeseen circumstances such as insolvency, death, etc., can have their guardian or representative claim it on their behalf.
- When the amount of TDS deducted by the taxpayer’s employer or bank exceeds the taxpayer’s regular assessment amount
- When an individual is taxed both in India and in a foreign country (with which India has a double taxation agreement)
- An investment that provided the taxpayer with a tax benefit that has not been declared by the taxpayer.
My Income Tax Refund Is Due, How Do I Claim It?
Getting a refund is as simple as filing a tax return. Within 120 days of filing the returns, they should be verified through an OTP using your Aadhar number, an EVC generated from your bank account, or by posting the signed ITR-V (acknowledgment).
Refunds: How do they work?
Transparency requires only these two types of refunds
- It will be credited directly to your account via RTGS or NEFT. Taxpayers must provide the following information to their authorized bank account: the 10-digit account number of the bank, the MICR code, and the address where the money will be sent.
- Alternatively, a check may be sent to the applicant’s home address. The correct address must be entered here as a mistake in entering the address will result in the check being returned.
Tax returns filed online can be paid in a variety of ways. It should be noted, however, that any errors in the communication address, bank account, or refund calculation may result in a delay or cancellation of your refund.
Entering their PAN and assessment year on the official portal will allow taxpayers to check the status of their refund 10 days after it is sent to the refund banker by the assessing officer.
Refund Process Issues
The CPC can sometimes not process the taxpayer’s refund for some reason, but after a specified period of time, the taxpayer’s record is transferred to the jurisdictional assessing officer by the CPC. Taxpayers will be informed of this information and can follow up with the jurisdictional assessing officer for the refund by submitting an official letter.