Skip to main content

Income Tax Refund

Buy Gold Mutual Funds

Invest Mutual Funds Online

Download Mutual Fund Application Forms

Call 0 94 8300 8300 (India)

Talk about income tax refunds and you'll find six of 10 people complaining about their share pending for long. There are several reasons for this; growing number of taxpayers, technical problems at the department, and many times, the department is 'slow at work'.

It works like this. Once a return is filed, the income tax (I-T) department verifies the information and processes it, and refunds any excess paid. Ideally, a refund cheque is supposed to reach your mailing address in four months or can be credited to your bank account through the electronic clearing system or ECS.

Says Taxguru.in, the ECS option introduced under the Refund Banker Scheme in 2007 to implement speedy refunds does not cover the salaried taxpayer in Mumbai, though it covers 14 other cities.

But, even in those cities, ECS has not helped much. Neither has the interest penalty of six per cent. As a result, the four-month period stretches to years.

Income tax refund can be delayed if the amount you claim as taxes paid does not match the government's record. Many presume the online record (Form 26 AS as compared to Form 16/16A) is correct, which may not be the case always. Hence, it is advisable to always take a copy of your Form 26 AS and compare it with your Form 16/ 16A. Also as a caution, always check the permanent account number (PAN) you provided at the time of filing returns and other personal details (name, assessment year, and so on) which, if written wrongly, can add to your refund woes.

If you give wrong addresses, you'll have to wait for refunds. And, most don't update the address of correspondence provided at the time of applying for PAN. The I-T department is supposed to credit refunds directly to your bank account in case the amount is less than ~25,000. However, often, even for higher amounts you may just land a cheque to the mailing address given at the time of applying for PAN. So, update your change in address regularly. If possible provide your permanent address, if you live on rent.

You are supposed to give your bank account number and its MICR code for direct credit of refunds. Most taxpayers don't provide the right MICR code, which stands for magnetic ink character recognition, and their refund gets stuck.

If you have an account with a co-operative bank, do remember to say No to the option (at the time of filing returns) where you are asked whether your bank has ECS facility or no. Importantly, from this year onwards you will have to furnish details of tax deducted at source (TDS). If the details in your form don't match the one with the IT department, your refund will not be addressed immediately.

This is how it works. Anybody issuing a TDS certificate, except salary TDS, should download Form 16A from the National Securities Depository's (NSDL) website and give it to the taxpayer. For instance, your bank will give it to you. On the right hand top corner you'll find the six-digit TDS certificate number.

The details can mismatch due to various reasons, such as the TDS deductor writing wrong TDS number or not sending the tax deducted, leading to a delay in your tax refund.

Those having a salary account or bank interest income should also provide Tax deduction Account Number (TAN), mandatory for assessees liable to deduct TDS. Many don't provide one or give awrong number of their employer or bank or any other institutions paying them an income.

The return is considered not filed until the Income Tax Returns Verification (ITR-V) reaches the department's Bangalore office within 120 days of filing returns online.

Then, your refunds can be delayed if it is picked up for scrutiny and there is no one particular reason for it. Refund arising on revised returns will also not be easy to get. Or, if on the back of mismatched assets, your refunds can be delayed. There may be cases where you receive the cheque, but it has expired.

Getting your refund is a lengthy and time-consuming process. You can take it up with the Assessing Officer or Additional Commissioner of Income Tax (A-CIT), which should be sorted in a month or three.

There can be several reasons for the excess amount to get stuck. So, check all information you provide

INCORRECT TDS DETAILS: If the TDS details in your form do not match the data with the income tax department, expect your refund to get delayed. Verify he TDS details online before sending the form

MANYTDS ENTRIES: If there are lots of TDS entries (some taxpayers can have up to 70-80 entries), your assessment might take a little longer. Obviously, the refund also gets delayed

WRONG TAN: If you are a salaried individual or earn interest income, not providing TAN can also delay your refund. It is advised to provide your employer or bank's TAN

WRONG MAILING ADDRESS: Though direct credit of refunds has removed this problem to a large extent, there are some who give incorrect addresses and then wait for refunds

INSUFFICIENT BANKDETAILS: You are supposed to give your bank account number and its MICR code for direct credit of refunds. If there is an error, your refund gets stuck

NOT SUBMITTED ITR-V: The return is not filed until the ITR V reaches the CPC in Bangalore. Don't expect any refund if the ITR-V has not been filed
 

Here's what you can do Any defective filing from your/I-T department side has to be solved by a rectification letter. If the issue is cleared, you will get your pending refund If there are no defects, you need to write a letter, along with copies of returns, to your AO, informing him of delayed refund If there is no response in 10 days, write another letter to the A-CIT, attach a copy of the letter to the AO No response? Take it up with the Grievance Department, with copies of letters to both AO and A-CIT Visit the AO and A-CIT if need be Take the RTI route for an update on your refund  

 

 

Happy Investing!!

 

We can help. Call 0 94 8300 8300 (India)

 

Leave your comment with mail ID and we will answer them

                        OR

You can write back to us at prajnacapital [at] gmail [dot] com

---------------------------------------------

Invest Mutual Funds Online

Transact Mutual Fund Online

Download Mutual Fund Application Forms from all AMCs

Download Mutual Fund Application Forms

Best Performing Mutual Funds

    1. Largecap Funds        Invest Online
      1. DSP BlackRock Top 100 Fund
      2. ICICI Prudential Focused Blue Chip Fund
      3. Birla Sun Life Front Line Equity Fund
    2. Large and Midcap Funds     Invest Online
      1. ICICI Prudential Dynamic Plan
      2. HDFC Top 200 Fund
      3. UTI Dividend Yield Fund
    1. Mid and SmallCap Funds    Invest Online
      1. Reliance Equity Opportunities Fund
      2. DSP BlackRock Small & Midcap Fund
      3. Sundaram Select Midcap
      4. IDFC Premier Equity Fund
    1. Small and MicroCap Funds             Invest Online
      1. DSP BlackRock MicroCap Fund
    1. Sector Funds              Invest Online
      1. Reliance Banking Fund
      2. Reliance Banking Fund
    1. Gold Mutual Funds             Invest Online
      1. Relaince Gold Savings Fund
      2. ICICI Prudential Regular Gold Savings Fund
      3. HDFC Gold Fund

Popular posts from this blog

ICICI Pru Mutual Fund Dividend

ICICI Prudential Mutual Fund has announced dividend under the following schemes: Scheme Dividend ( Rs /unit) ICICI Pru Capital Protection Oriented Ser V Plan B-D 0.03611325 ICICI Pru Capital Protection Oriented Ser V Plan B Direct-D 0.03611325 ICICI Pru Balanced Advantage Direct-DM 0.06 The record date has been fixed as February 08, 2017. ------------------------------ ------ Invest Rs 1,50,000 and Save Tax upto Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds Top 4 Tax Saver Mutual Funds for 2017 - 2018 Best 4 ELSS Mutual Funds to invest in India for 2017 1. DSP BlackRock Tax Saver Fund 2. Invesco India Tax Plan 3. Tata India Tax Savings Fund 4. BNP Paribas Long Term Equity Fund Invest in Best Performing 2017 Tax Saver Mutual Funds Online Invest Best Tax Saver Mutual Funds Online Download Top Tax Saver Mutual Funds  Application Forms For further information contact  SaveTaxGetRich on 94 8300 8300 ------------------------------ ------ Leave y...

Hidden Bank Fees

  What Banks Hide From Customers Imagine after a peaceful and exciting holiday you receive your bank statement with steep charges. You then rush to your bank and start confronting staff members and to your dismay, you come to know that the high end debit card was charged very heavily. Wouldn't this cause damage to your finances? So remember, the world outside is full of deceptive and double cheating people. Unethical practices are always used by company sales person in order to meet the target. Credit card companies, mutual funds and bank institutions always play dirty tricks to lure customers and the practices are rampant. So here's how you should be careful while dealing with your banks: High End Debit Card Charges While opening an account with a bank you opt for a debit card with minimal charges. But later on when you upgrade your card and opt for high end debit card the annual charge rise by a good amount. Though such a card has slew of features but it all comes at a high ...

Partial withdrawal from PPF

  Public Provident Fund (PPF) account has a lock in period   If you opened a PPF account to meet your retirement needs,, think twice about withdrawing from this fund before retirement. But provided it's an emergency here are the rules. Public Provident Fund (PPF) account has a lock in period before which you cannot withdraw your money.   The partial withdrawal is allowed after the completion of 6 financial years . This means that you will be allowed a partial withdrawal from 1 April 2017. The maximum partial withdrawal allowed is the least of the following: 50 percent of the account balance at the end of fourth financial year, 31 March 15 50 percent of the account balance of the end of previous financial year, 31 March 17.   There's a loan option available on your PPF account between the fourth and the sixth financial year. You can obtain a loan of up to 25 per cent of the balance in your account. However, this will attract interest of 2 percent more than the prevailing ...

Updating a minor PAN card upon becoming adults

  Updating a minor's PAN card once they become adults A PAN card issued in the name of a minor does not contain the minor's photograph or signature, and therefore, cannot be used as a valid proof of identity. Once a minor PAN card holder turns 18, the relevant changes must be made in the PAN records. A new card is then issued bearing a photograph and signature. Application The applicant is required to fill up the "Request for new PAN card andor changes or correction in PAN data" form. The form can be filled up online by accessing NSDL's Tax Information Network website and clicking on the online PAN application tab. Information The applicant must mention the existing PAN number in the application and check the `photo mismatch' and `signature mismatch' boxes, and submit the online form. The form must also be printed out, signed by the applicant, and submitted along with two photographs. Documents Identity and address proof in the form of a copy of the app...

ICICI Prudential Value Fund Series I

Invest In Tax Saving Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Buy Gold Mutual Funds Call 0 94 8300 8300 (India)   Performance of the scheme will be benchmarked to the S&P BSE 500 index ICICI Prudential Value Fund is a closeended equity scheme. The scheme will have tenure of three years (1095 days) from the date of allotment of units. Units of the scheme will be fully redeemed at the end of the maturity period, unless rolled over. NFO PERIOD:   The NFO is open from October 18 to 28. The minimum subscription during the NFO period is Rs 5,000. SCHEME OBJECTIVE:   The scheme aims to provide long-term capital growth by investing in a well-diversified portfolio of equity and equity-related securities. INVESTMENT STRATEGY:     The fund proposes to invest in stocks that are trading at a huge discount in the BSE 500 index and plans to book profit and distribute dividen...
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now