Saving money through tax refunds
Once you know everything about income tax refunds, it becomes easy to claim them when the time comes. You are eligible to receive a tax refund when you have paid more taxes than you were liable for. This refund can be obtained when the financial year draws to a close.
With new taxation laws in place, collecting tax and assessing the amount of refund you’re eligible for is easy. The first step is to calculate how much tax you actually owe. Go through the applicable tax slabs depending upon your annual income. As a salaried employee, you can claim tax exemptions on travel allowance that the company provides and on house rent as well. Declare all your investments to the company you are employed with, so they can make the right tax deductions from your income. Bear in mind that you have to claim your refund within a span of one year.
Using Loans and Investments for Tax Benefits
Loans and investments allow you to claim several tax benefits. Whether it be a home, vehicle or personal loan, or insurance and savings plans, you can claim tax benefits on them. You need to submit proofs of whatever investments you have made. Bajaj Finserv gives you a great Home Loan option at low rates of interest. An investment plan can not only secure your future but also help you claim a rebate on taxes.
Furthermore, even investing in fixed deposits comes with great returns and tax benefits. If you’re a business owner who would like to claim tax refund, the first thing you will need is your Tax Identification Number. Choose Bajaj Finserv for a Fixed Deposit that does not deduct tax on an interest payment of up to INR 5,000 annually.
Claiming Refunds on Income Tax
The procedure for applying for an income tax refund is a fairly simply one. The government has launched a Refund Banker Scheme that quickly assesses how much of a refund you are eligible for and transfers the same to your account. To learn how to apply for an income tax refund, you can read through the new ITR rules issued by the government. You should make use of Form 30 to file returns and claim your refund.