According to the Income Tax Act, when taxpayers pay more taxes as TDS( Tax deducted at source), advance tax, self-assessment than their actual liability then they claim for tax refunds. To claim tax refunds, they can file Income Tax returns by providing the details of all sources of incomes against all tax paid during the financial year. Having a detailed overview about income tax slab can be really helpful.
Understanding the need of providing money to the taxpayers in the lockdown period, the Finance Ministry has expedited the process of delivering the pending Income Tax refunds to the taxpayers. The good news is the government is providing income tax refunds to the taxpayer at a pace then it has ever given. As per the records of the Income Tax Department, it has provided Rs. 26000 crore worth tax refunds for this financial year. The tax refund has been given to about 16,84,298 assessees for March 21, 2020, to April 1 2020. The assessees include both individuals and corporates.
Talking about the counts of May, the government provided a refund worth Rs 2672.97 crore to 1,22,764 income tax assessees between 17th to May 21, 2020. The tax refund has also been given to 33,774 corporate tax assessees including trusts, MSMEs, proprietorships, partnerships, etc. The worth of corporate tax refunds was equal to Rs—6714.34 crore. Thus, overall during this period the total amount refund of Rs. 9387.31 crore was provided to 1,56,538 assessees.
As part of the relief package, the government has also extended the dates for filing the income tax returns by a quarter. Further, it has also announced changes in ITR forms for the Assessment Year 2020-21.
As per the recent change if any individual, Hindu Undivided Family, professionals and people in business have made any investment during the first quarter of FY 2020-21 ending on June 30 they can receive certain benefits on these investments. These benefits include exemptions or deductions while filing the income tax returns.
To claim these deductions, you have to file separate ITR forms with descriptions about the expenditure of these investments. At present, there are seven different formats of ITR (ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6, and ITR-7) which are based on the assessee type, amount of income, sources of income, etc.
Not just that, it also reduced the TDS( Tax deducted at source) by 25 percent for non-salaried individuals.
When can you claim for income tax refunds? Income tax refunds are provided to the taxpayers when they paid excess tax in the following scenarios:
- The taxpayer did not disclose all sources of income to the investors. Thus, the total tax deducted by the taxpayer exceeded the actual liability.
- If the advance tax or self-assessment tax paid by the taxpayer is more than the actual liability.
- If the tax on interest income was more than the actual taxes, you could claim for income tax refunds.
- In case, double taxation was levied, you can claim for tax refunds.
Conclusion: Thus, you can easily file income tax returns by filing the ITR form on the NSDL website. You can also track the status of your income tax refunds on the site.