Skip to main content

I-T returns: Refunds may take time

Individuals should file their returns as soon as possible after 1st April. However the income tax department does not publish revised forms and related instructions until well past that date. Therefore although in theory, the individual is entitled to file his returns as early as he chooses, in actual practice he is officially hindered from doing so until much later.

COLLATING DATA

Tax payers are asked to collect their personal financial data before the end of the financial year. Each year, many people do maintain details from 1st April onwards each year through a spreadsheet. But, one has to struggle to finalise this information after 31st March mostly because banks do not provide interest certificates for the previous twelve months sometimes until well into May. This inhibits correct accounting of both, income and TDS deducted, particularly relating to cumulative deposits.

FORM 16A

Both banks and other investment institutions do not provide Forms 16A often until June of the following year, despite being urged to do so much earlier. According to them, income tax authorities have given them liberty to finalise such documentation only by end May, how can one file one's returns well before the final date.

ONLINE DATA

Tax authorities have been touting the introduction of direct access to information provided in the Form 26AS, on its website. But there have been instances when the information displayed therein, regarding interests and tax deducted at source (TDS), from a leading private sector bank, were erroneous. This, even while the data on the physical interest Certificate which the branch gave was correct.

Since the IT Department refuses to accept documentary support to returns, the individual in this case was told, that the assessment would be based only on what appeared on his 26AS display. This reduced the refund due to him. It took the bank over two months to remedy their faults. In the process, the returns could be only in the third week of July.

PAYING CAPITAL GAINS

Individuals are required to pay the due capital gains taxes, within the end of the quarter in which these are generated. Indexation of Long Term Capital Gain (LTCG)is permissible, but the department does not provide the index figure for the current financial year usually until almost its end. Thus, compute of dues is an issue. Ideally, this data should be available before August end each year. Currently, tax payers have to pay an interest on tax shortfalls, if their indexation figures are more favourable than the department's.

MAJOR EXPENSES

The returns filed should report major expenditures. But, any such requirement is known only through the design of the form and the attached instructions which are published well after the end of the financial year. By then, an individual might not have recorded the previous twelve months' data. Unless, any such requirement is made known before the end of April of the financial year for which it will apply, it isf difficult to gather such data. Ideally, failing such an announcement, such requirement should be prohibited from being mandatory until the following financial year.

QUICK REFUNDS

Early submission of returns are supposed to result in quick issue of any due refunds. But, this really hasn't been the case for many tax payers, who are still awaiting refunds.
 

Popular posts from this blog

Birla SunLife Manufacturing Equity Fund

The Make in India program was launched by Prime Minister Naredra Modi in September 2014 as part of a wider set of nation-building initiatives. It was devised to transform India into a global design and manufacturing hub. The primary motive of the campaign is to encourage multinational as well domestic companies to manufacture their products in India. This would create more job opportunities, bring high-quality standards and attract capital along with technological investment to bring more foreign direct investment (FDI) in the country.   Why India as the next manufacturing destination?   The rising demand in India along with the multinational's desire to diversify their production to include low-cost plants in countries other than China, can help India's manufacturing sector to grow and create millions of jobs. In the words of our Honourable Prime Minister- Mr. Narendra Modi, India offers the 3 'Ds' for business to thrive— democracy,...
Read more

Total Returns Index brings out real Equity Funds Performers

From February, equity mutual funds have to change their benchmarks to account for dividend payments. Until now, funds used price-based benchmarks alone. TRI or total return indices assume that dividend payouts are reinvested back into the index. What this does is lift the overall index returns, because dividends get compounded. For example, the Sensex TRI index will consider dividend payouts of its constituent companies while the Nifty50 TRI index will consider dividends of its constituents. Using TRI indices as benchmarks comes on the argument that an equity funds earn dividends on the stocks in its portfolio, which they use to buy more stocks. Therefore, using an index that also considers dividend reinvestment would be a more appropriate benchmark. Shrinking outperformance With a stiffer benchmark, it is obvious that the margin by which an equity fund outperforms the benchmark would shrink. Rolling one-year returns from 2013 onwards, the average margin by which largecap funds out...
Read more

Stock Review: Havells

HAVELLS India's stock performance has been muted in the past three months, in line with the weak broader market. But, given the turnaround in its overseas subsidiary and the launch of new products in its consumer durable business, the company's stock may undergo a re-rating.    Havells is India's leading consumer electrical goods company, with consolidated sales of . 5,527 crore in the past four quarters. Its wholly-owned subsidiary Sylvania, which makes lighting and fixtures, has established brands in European, Latin American and Asian markets. Sylvania repre sented nearly half of the company's consolidated revenues in the first half of FY11.    Sylvania's poor financials hit Havells' consolidated performance in FY10. But, this has changed in the cur rent fiscal. Havells has reduced fixed costs of Sylvania by exiting from unprofitable businesses and outsourcing manufacturing to low-cost locations such as India and China. In the September 2010 quarter, Sylv...
Read more

How to generate a UAN Online

Best SIP Funds Online   In order to make Employees' Provident Fund (EPF) accounts portable, the Employees' Provident Fund Organisation (EPFO) had launched the facility of Universal Account Number (UAN ) in 2014. Having a UAN is now mandatory if you have an EPF account and are contributing to it. So far, you got this number from your employer and every time you changed jobs, you had to furnish this number to the new employer.  However, in order to make it easier for you to get a UAN , and without your employer's intervention, the EPFO now allows you to go online and generate a UAN on your own. This facility can be used by freshers, or new employees, who are joining the workforce as well as by employees who have older EPF accounts but do not have a UAN as yet. As a new employee, you can simply generate a UAN and provide the number to your employer at the time of joining, when you need to fill up forms for your EPF contribution. As per a circula...
Read more

Health for Wealth - How to buy Health Insurance ?

Tax Saving Mutual Funds Online Current open Infra Bond Application form   HEALTH insurance is a relatively new phenomenon in India. Hence, it is not on the top of the mind for most people to make a conscious commitment towards health insurance. However, it is imperative for each one of us to plan for better health for our families and ourselves. There's no better way than to start with making health your top priority this year. So, your health insurance resolution charter would look something like: ■ Invest in health for wealth: Timely investment in health insurance can help build a security net and hedge sudden dilution of another financial asset class in the event of a health emergency, making it imperative to opt for a comprehensive health insurance plan. ■ Buy a comprehensive health cover that fu lfills your health needs for life: Buy a personal health insurance cover even if you have an employee cover because 'employer provided' health insuranc...
Read more
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