When it comes to the income tax refund, many people are often ignorant about it. Paying taxes seems inconvenient to most people. However, all of us look forward to getting a refund. Basically, the whole concept of claiming a tax refund is about recovering your own money that you had overpaid earlier.
Therefore, people who had paid more than they were supposed to end up being eligible to claim a tax refund. Even though the Income Tax department has limited the payable amount for tax, there are still various reasons that push people to pay more at times. So, for such people, the IT department has made it possible to get a tax refund or Income Tax Return (ITR). If you’ve no idea about this process, then read on to gain the required information.
1. Remember the Filling Date of ITR
While filling the ITR for a particular year, one can also claim the Income-tax refund at that time. You must fill out the ITR before the end of July as it’s the last date for every financial year. Considering the given deadline, one should make the required arrangements for filing the ITR. Why get into any hassle when you have got so much time? So, avoid the stress and rush by taking care of it beforehand.
2. Keep the Required Documents Ready
Documents are very important while you are going to file the ITR. So, make a file of all the required documents and keep them with you. Now you must be wondering what the essential documents are. Well, it includes your bank statements, investment proofs, 26AS tax credit extracts, certificates of interest that are paid, salary statements, statements of business income, supporting documents, etc.
3. File Your ITR
The most important step is to file your ITR. Here, all you need to do is fill out a form that asks for details concerning your salary, name, taxable income, address, total due, TDS (If applicable), refund due, etc.
In a nutshell, you need to provide every information regarding your income of that financial year. Also, if you feel you do not have enough information to do it yourself, ask your Chartered Accountant or Financial advisor to file it for you.
4. Know the Refund Amount
Once you’re done with fulfilling and submitting your form, your next task is to find out the amount that you are entitled to get as a refund. When you go to the “Taxes Paid and Verification” page, you will find an option called “Validate,” click on it, to know the exact amount. Remember the amount and also don’t forget to save the receipt generated for ITR-Verification.
5. Send the Receipt to the ITR Department
You’re only entitled to the amount that has been shown to you on the page of Taxes Paid and Verification. Now you need to sign and post the ITR-V receipt to the ITR department. You can rely on the address that’s available over the Internet.
6. Getting the Refund
The IT office will send you a notification when your receipt reaches them. You need to be very careful as well as accurate while sending the ITR-V receipt as they will be re-checking the figure that you’ve mentioned.
After the verification ends, they will move on to processing your application. In the next step, the refund amount will be sent to your account. If there’s find any misleading information or figures that are posted by you, they will immediately reject the application at once.
Whatever may be their decision, it will be notified to you via text message or mail on the registered number or email address. Within a month or four, your refund amount will be credited to your account.
How is the Payment Made?
The amount is directly credited to the bank account of a taxpayer considering the details that have been provided by the person while filing the ITR. Apart from account transfer, one can also get a refund by:
1. Direct Credit
Either the ITR will be paid through directly RTGS/NECS or through a cheque. If you are convenient with the direct credit option, then you’ve got to mention all details regarding your bank, such as IFSC number and account number, along with the communication address.
If they find your account details improper, invalid, or unclear, you will be sent a cheque by the IT department to the mentioned a/c number.
If you had no idea about the tax refund thing until now, you might not even be aware that you are entitled to a certain amount by the IT department. However, the IT department keeps sending emails and text messages to remind you about the money that you’re entitled to. If you have been ignoring it, thinking it cannot be claimed, you’re wrong! Now that you know how to file an ITR go ahead!