How to claim for Income Tax Refund in India

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What is Income Tax refund

Income tax refund is the amount that you have paid extra to the IT department, beyond your tax eligibility. E.g. for year 2014-2015, you should pay Rs 100/- as income tax, but you might have paid Rs 110/- . So Govt is liable to return your extra Rs 10/- back to you.

But for that you have to follow some procedure to claim your money back. This is called income tax refund. You don’t have to take any tension about this deduction, as you can claim that amount easily by filling tax forms during efiling your income tax.

Although it might take some time to get the amount in your account, but recently the process has been improved a lot. If all the information you provided are correct and accurate, then you can get the refund within 10-15 days max.

Why we pay extra income tax than our eligibility?

Actually, in the beginning of financial year people don’t have clear planning or visibility about how much they can invest to save more income tax. But your employer may deduct income tax as per your investment declaration.

Also Read  e-filling of audit report and I-T returns for income over Rs 5 lakh is now mandatory - CBDT

This way every month income tax amount has been deducted from your salary. At the year end when you show some actual investment to save income tax, you may discover that you have paid too much money as income tax.

But no need to worry, as you can claim for Income Tax refund paid extra as income tax, beyond your eligible income tax payable while filing your IT return online.

How to prevent extra income tax deductions

If you work for any private company, then this rule may apply. In such a scenario it is always adviced to

  • Start planning your investments from day 1 of you financial year and update the same in your investment declaration area.
  • Otherwise, you should declare till your maximum limit in your investment declaration, so that income tax deduction would become very less. But remember that, if you don’t do any investment till year end, company will deduct you entire eligible income tax in last 2 month. In such a scenario you may get very less salary in last 2 months of a financial year.
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So, which one is the best practice? I would recommend you to start investing in the beginning of a financial year so that you can manage your investments & as well as the money you pay as income tax.

How to claim for Income Tax Refund in India?

You can simply fill the IT return forms, by downloading from income tax India official website and upload the same. Otherwise hire some income tax broker and assign him your form-6 and he will do everything for you. You can also take help from any of the efiling website these days.

After filling your income tax online, you have to send the ITR-V form with your signature to this address “Income Tax Department – CPC, Post Box No.1, Electronic City Post Office, Bangalore – 560100, Karnataka” within 120 days of e-Filing. But if you have Aadhar card, then you don’t need to send ITR-V to CPC Bangalore as per new rule.

Also Read  Is it mandatory for a PAN card holder to file income tax return?

How to check income tax status online?

Generally you have to send the ITR-V form via post office normal mail or speed post only. Then income tax department will receive your return and update your status. You can simply visit the website to check your status online.

Put your PAN number, assessment year as 2014-15 and then press submit. You can see the status of your return. You can check your refund status after receiving your acknowledgement copy only. You will get the money directly in your bank account or via cheque, whatever you option you have provided.

Hope you are now clear about how to claim for income tax refund in India. Did you file your income tax return for this year? Share your experience or any question related to this topic here.

2 COMMENTS

  1. Hello
    i was wondering if Refund Banker will send paper checque if refund amount is greater than some determined limit (rs 50,000) or not still since once i specified depositing in bank account but they sent paper cheque.
    thanks

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