A checklist to follow while applying for an income tax refund
Whether you are an individual or a businessman with a regular income, you would probably know how to file for income tax returns. Simply put, a tax refund occurs when the excess amount you’ve paid in tax is returned to you.
Some of the reasons you may claim a tax refund are –
- If you had not declared certain investments which are eligible for tax deductions
- If you are a salaried professional and could not submit proof of your investments to your employer before the closing date
- If you have not declared the interest paid on a home loan, which is eligible for tax exemption. Applying for a home loan can also give you tax benefits. Bajaj Finserv offers the best Home Loan interest rates with minimum fees and charges.
- If you are self-employed and tax is deducted at the source (TDS) by the company paying your fees
- If you have been anticipating capital gains and have paid advance tax, but the gains are lesser than expected
Using a personal loan for your house, whether for down payment or renovation expenses, makes you eligible for tax deductions. With instant online approvals and flexi loan options, Personal Loans by Bajaj Finserv are a great tax-saving option.
Applying for a Refund
The next question that would come to your mind is ‘how to apply for an income tax refund?’ Here’s a short guide to filing an income tax refund,
- The most important step you need to take is filling out your income tax return forms on time. For this, you need to be sure when to file for income tax returns and take care to provide all the necessary investment details. You have the option of filing returns online for quicker processing.
- By checking your income tax returns online, you can find out if your tax refunds accurately match your calculations.
- If the tax refund is correct, you just need to file your return. The tax refund could be sent as a cheque to the address mentioned on your form or the amount could be credited directly to your bank account. Therefore, it is necessary to mention your bank details accurately on your income tax return.
- You could also file a claim for tax refund using Form 30.
Opening a Fixed Deposit with Bajaj Finserv will help you save as no tax is deducted at source on interest payments up to INR 5000 p.a.
What is Tax Deducted at Source?
Tax Deducted at Source (TDS) is a system where tax revenue is collected at the source of income. If excess TDS has been collected at the source, you could apply for a refund. The process of applying for a TDS Refund is similar to applying for an income tax refund. You simply need to fill out the TDS section on your Form 16 and submit it along with your other tax documents.
Tracking Your Refund Status
Once you have finished applying for your income tax refund, you’ll probably want to know how to check an Income Tax Refund Status.
You could check the status online at the Tax Information Network by entering your PAN card details and assessment year. Refund claims are generally settled within four months of filing of your returns. However, if you do not receive the refund, you could visit the tax department office or write a mail to the concerned income tax officer.
Filing your taxes on time is the first step to ensuring your finances are in order. By learning how to claim your income tax refund, you can save the money that is rightfully yours.