INCOME TAX REFUND (1)

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G K Kedia Co.

• CHARTERED ACCOUNTANTS FIRM

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INCOME TAX REFUND

• The Term Income tax refers to the type of tax
  that the government imposed on income earned by
  the person (defined in the Income Tax Act, 1961)
  during the previous year such income is to be
  assessed in the Assessment year.

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As per section 2 (31) of the Income Tax Act, 1961
person Includes

• An individual,
• A Hindu undivided family,
• A company,
• A firm,

• An association of persons or a body of
  individuals, whether incorporated or not,
• A local authority, and
• Every artificial juridical person.

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As per section 3 of the Income Tax Act,
1961"Previous year is defined.
For the purposes of this Act, Previous year
means the financial year immediately preceding
the assessment year Provided that, in the case
of a business or profession newly set up, or a
source of income newly coming into existence, in
the said financial year, the previous year shall
be the period beginning with the date of setting
up of the business or profession or, as the case
may be, the date on which the source of income
newly comes into existence and ending with the
said financial year.
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As per section 2(9) of the Income Tax Act, 1961
Assessment year is defined.

• Assessment year is the period (from April 1 to
  March 31) during which you are taxed on the
  income you received in a given financial year.

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Provision relating to Refund

Income tax return, often known as IT refund,
occurs when an Assessees tax paid exceeds the
amount is obligated to pay. It is computed in
accordance with various tax rules and sections of
the Income Tax Act of 1961.
Sections 237 to section 245 deal with the
provisions relating to the refund of excess tax
paid by the taxpayer.
How to calculate income tax refund

• Calculate the total amount of tax paid for the
  year (by any means, i.e. advance tax or tax
  deducted /collected at source or self-assessment
  tax or payment of tax on regular assessment).
• Calculate the actual tax payable at the year-end
• Tax Refund shall be (A) (B).

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How to claim a refund?
Income Tax refund can be claimed only through
filing a return of income within the time limit
prescribed under section 139 of the Income Tax
Act, 1961, In which you provide all the details
of income, tax deducted at source, and along with
tax paid for the previous year. It is mandatory
to file ITR online only to get the benefit of a
refund in case of excess payment of tax with the
effect from 01 Sep 2019 specified in the Finance
(No. 2) Act, 2019.
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Applicability of Interest on refund
According to section 244A of the Act, interest on
delayed refunds is as

• Refund arising out of TDS/ TCS/ Advance Tax/
  Self-Assessment tax u/s 140AInterest is
  calculated at the rate of 0.5 per month or part
  of the month. In case return is filed on time,
  interest is calculated from the 1st of April to
  the date refund is granted, But if the return is
  not filed on time, interest is calculated from
  the date of filing an online return to the date
  refund is granted. It must be considered that if
  the refund amounting to less than 10 of the tax
  under assessment, then it is not entitled to any
  interest.

• In any other caseInterest is calculated at the
  rate of 0.5 per month or part of the month from
  the date of payment of tax to the date of grant
  of the refund.

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Status of Refund

The Status of Refund/ Demand can be checked by
following the below-mentioned methods

• Through Income Tax Portal
• Login to e-Filing website with the User ID,
  Password, Date of Birth / Date of Incorporation,
  and Captcha. Go to My Account and click on
  Refund / Demand Status.
• Below details will be displayed.
• Assessment Year Status Reason (For Refund Failure
  if any) Mode of Payment is displayed.
• Taxpayers can now view Refund/ Demand Status.
• Through NSDL Website
• Visit the TIN NSDL website for refund tracking
• Scroll down to enter your PAN and select the
  assessment year. Enter the captcha code and click
  on Proceed.
• Next, you will be redirected to a page that will
  display a message depending on your income tax
  refund status on NSDL.

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CONTACT
Head Office Delhi 812, Naurang House
21, Kasturba Gandhi Marg, Connaught Place, New
Delhi- 110001, India 91-11-46259900 1800110099
(India Toll Free) 91-8826897200 mail_at_gkkediaandco
.com