Procedure and Duration for Claiming a Tax Refund in India
August 17, 2022 हिंदी में पढ़ेंTable of Contents
Taxation laws allow the assessee to claim refunds for excess tax paid to the government during a financial year. A tax refund applicable to employees falls under the following:
Tax Deduction at Source at a rate higher than the actual tax payable.
The companies ask their employees to submit a proof of their tax returns & savings investment so that such savings and investment can be set off against the tax that is deducted.
Section 237 and 245 of the Income Tax Act, 1961 deals with provisions relating to refund of taxes and any such refunds arise on an assesse satisfying to the assessing officer that the amount of tax paid by the assesse for any year exceeds the amount of tax payable by him.
What is the procedure to Claim Refund?
-
For any assesse to claim a refund under the IT Act, he/she shall do so by filing form 30.
-
Under the ordinary course, a tax refund may be claimed during/while filing the Income tax returns.
-
There is no tax applicable for refunds as the same is receipt of excess tax paid and not income earned.
-
It takes 4 to 6 months from the date of filing the Income Tax returns to receive the refund.
-
The claim of a refund shall be made within one year from the last date of the assessment year.
-
In case of any delay due to any reason, an application for condonation shall be filed before the tax authorities provided the same is extended beyond six years.
-
Eligibility for Interest on the refund is calculated at the rate of 0.5% per month and 6% per annum from the first day of the assessment year until the date when the refund is paid to the assessee.
-
A rejection on a tax refund may happen in the event of an incorrect calculation of tax payable by the assesse.
What is the procedure for claiming a TDS refund?
There are no specific forms to be filled for claiming tax deduction as the same can be done while filing the income tax returns.
A TDS refund should be claimed in 4-6 months and any refund to be received shall have an interest coverage of 6% per annum if the refund payable is more than 10% of the total payable for that year.
These guides are not legal advice, nor a substitute for a lawyer
These articles are provided freely as general guides. While we do our best
to make sure these guides are helpful, we do not give any guarantee that
they are accurate or appropriate to your situation, or take any
responsibility for any loss their use might cause you. Do not rely on
information provided here without seeking experienced legal advice first. If
in doubt, please always consult a lawyer.
The internet is not a lawyer and neither are you.
Talk
to a real lawyer about your legal issue.
Comments by Users
No Comments! Be the first one to comment.
Tax Law Articles
User Reviews
4.7 - 20 reviews
Very helpful in understanding the law.
thank you for the information
very good article. Good writing
good article. Please provide more info
Very good article
needed some more information on the subject.
Answered all my legal queries.
nicely written. Great work
helpful in understanding the law
Written in a very simple language.
Very nice article. English is very simple. Thank you for the information.
very good article. Please provide more information on the subject
can you share your helpline number
good advice. Who can I contact for my legal issue?
loved the way concept is explained. Nicely written for any layman to understand.
good article. Very helpful
thank you for the information
very informative.
I have legal query. Who can I call?
Thanks for the detailed article.
VIEW ALL