Here is why revenue taxpayers are getting diminished tax refunds

Have you filed your revenue tax return (ITR)? Did you obtain the tax refund claimed whereas submitting ITR for FY 2020-21? Was the obtained quantity decrease than what you had claimed? If sure, do not panic, you aren’t alone; a number of taxpayers have obtained decrease tax refunds of their financial institution accounts. 

This is as a result of there was an error within the new revenue tax portal due to which taxpayers are getting diminished tax refunds.

Abhishek Soni, CEO & Co-Founder, Tax2win.in mentioned, “We observed that many taxpayers are not getting the complete amount of Refund as claimed in the ITR even the TDS amount is shown in the 26AS statement. The refund amount credited to the client is exactly the same as shown in the prefill data on the Income Tax Website. Ideally, the TDS amount reflected in the 26AS must be considered at the time of processing the ITR by the Income Tax Department. We hope, this issue will be resolved soon by the department”.

The deadline to file Income Tax Return (ITR) for Assessment Year 2021-22 (AY22) is December 31. It was prolonged resulting from difficulties confronted by taxpayers in submitting ITR resulting from technical points with the brand new tax e-filling portal.

The Budget 2020-21 had launched a brand new Section 285BB within the I-T Act, to revamp Form 26AS to an ‘Annual Information Statement’ which other than TDS/ TCS particulars, would comprise complete info of specified monetary transactions, cost of taxes, demand/ refund and pending/accomplished proceedings undertaken by a taxpayer in a specific monetary yr that must be talked about in revenue tax returns.

Following that, in May final yr, the Income Tax Department had notified the revised Form 26AS, together with info on high-value monetary transactions undertaken throughout a monetary yr, a transfer which additionally facilitated voluntary compliance and ease of e-filing of I-T returns.

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