HOW TO DEAL WITH INCOME TAX REFUND DELAYS

Delay or non receipt of tax refund is the biggest grievance of many taxpayers. Some common reasons for delay are unintentional error in bank details, delay in processing of paper income tax return and change in residential address.

REFUND QUALIFICATION: Most companies ask their employees to declare the details of their tax planning at the beginning of the year, but some employees fail to make such declaration and it leads to higher tax deduction which in turn results in tax refund.
Some individuals pay advance tax on the capital gains they make during the year.

EFILING SPEEDS UP REFUND PROCESS: If return is […] Read more

REFUND OF EXCESS TAX BY IT DEPARTMENT

IT departments has asked its officials to refund excess tax to tax payers even if they are hit by limitation period of 4 years. CBDT ( Central Board of Direct Taxes) has issued circular to assessing officers regarding issuing excess amount after due verification, so adjusted by CPC (Central Processing Centre at Bengaluru) due to inaccurate figures of arrear demand uploaded by assessing officer.
This circular will also help assessing officers in resolving disputes regarding arrear demands shown as outstanding against them in records and refund the excess tax collected.

Under the existing provisions of the Income Tax Act, the assessing […] Read more

INCOME TAX REFUND AT RECORD HIGH

Many of us don’t know the benefits of filing income tax return electronically. If return is filed electronically then one will get his refund within 3 months of filing the return.
This will also save time to go to income tax department as after filing return electronically one has to send the printed acknowledgement on the address mentioned.

As more of people are becoming aware of efiling, refunds given by income tax department of India hit record high in financial year 2011-12. Refunds given were approximately Rs 1lakh crores which is 32.4% more than financial year 2010-11.
This amount is expected to increase […] Read more