Mukesh Patel.in
practical tax & investment planning online
international tax expert / columnist / author / speaker

INTEREST ON TAX REFUND!

Every taxpayer is entitled to receive refund within one year from the end of the financial year in which his return is filed!

      As per Section 244A of the Income-tax Act, a taxpayer is entitled to interest @ 0.5% for every month or part of the month, (6% per annum) from the first day of April of the assessment year to the date on which the refund is granted, where the refund arises on account of TDS or advance-tax payment. It needs to be borne in mind that as per the proviso to Section 244A, no interest is payable if the amount of refund is less than 10% of the tax payable by the taxpayer.

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DON’T LOSE YOUR TAX REFUND!

Tax refund must be claimed within the specified time limit, but there is a remedy for belated & additional claims! 

There may be situations where considering the amount of tax deducted at source from the income of the taxpayer or the advance-tax paid by the taxpayer on his estimated income, the taxpayer becomes entitled to claim refund of income-tax, if such tax deducted or paid exceeds the actual income tax liability for the relevant assessment year. A taxpayer may also become entitled to refund of income-tax as a result of any order passed in appeal, rectification or revision, when the assessed taxable income has been reduced and he had paid excess tax earlier.

             Section 237 of the Income-tax Act provides for granting of Refund of excess tax paid or deducted in the case of a taxpayer, where such tax exceeds the actual tax payable by him.

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GUARD YOUR TAX REFUNDS!

Get set to crusade against unlawful adjustment of grossly erroneous tax demands against your rightful tax refunds!

               For the first time in the history of Indian tax administration, an All India Workshop is being organised for ‘Rectification & Reconciliation of Arrear Demands’ by the Centralized Processing Centre (CPC) at Bangalore, on 28th August, 2012. Justifying the need for the workshop, CPC has admitted vide its letter dated 21/08/2012 that nearly Rs.4,800 crores worth of tax refunds have been adjusted against disputed demands on the basis of the data uploaded by the assessing officers and there was an urgent need to rectify and reconcile the said arrear demand.

             Infact, there has been a huge hue and cry amongst taxpayers at large on this issue and taxpayers are very sore and highly agitated with grossly erroneous demands of earlier assessment years wrongly shown as outstanding against them and uploaded on the CPC portal, as a result of which their legitimate tax refunds have been gobbled down by the computerized system. This problem in the recent past assumed such an alarming proportion that the Central Board of Direct Taxes (CBDT) had to issue Circular No.4, dated 20/06/2012 to urgently take necessary corrective measures. (more…)

PRACTICAL TIPS ON CLAIMING TAX REFUND

Although, tax refund must be claimed within one year from end of the assessment year, there is a remedy for belated & additional claims!  
 
                  There may be situations where considering the amount of tax deducted at source from the income of the taxpayer or the advance-tax paid by the taxpayer on his estimated income, the taxpayer becomes entitled to claim refund of income-tax, if such tax deducted or paid exceeds the actual income tax liability for the relevant assessment year. A taxpayer may also become entitled to refund of income-tax as a result of any order passed in appeal, rectification or revision, when the assessed taxable income has been reduced and he had paid excess tax earlier.

                  Section 237 of the Income-tax Act provides for granting of Refund of excess tax paid or deducted in the case of a taxpayer, where such tax exceeds the actual tax payable by him. (more…)

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