Income tax return: How taxation guidelines apply to your ITR refund?

The final date for submitting earnings tax returns (ITR) earned within the 2022-23 fiscal is July 31 for salaried taxpayers. However, it’s important to file the return as quickly as doable in order that an incomes particular person may obtain an ITR refund as quickly as doable.

Is your earnings tax refund taxable?

Some folks assume that the ITR refund that’s credited of their account can be taxable. ITR refund isn’t taxable. Income tax refund acquired after submitting of earnings tax return isn’t taxable, nonetheless, curiosity which is paid is taxable like earnings from another sources.

“The curiosity paid at 0.5% monthly (i.e. 6% each year) is taxable. This curiosity is paid from 1st April until the date of refund. Note that no curiosity is payable if the refund is lower than 10% of the tax payable. The curiosity must be included within the earnings tax return within the Financial Year during which the refund was acquired. Any TDS, if deducted on the curiosity on earnings tax refund ought to be claimed in opposition to the overall tax legal responsibility,” said Archit Gupta, Founder, and CEO, Clear

How can I claim my income tax refund?

If you have paid excess tax to the Income Tax department than what was due or if the tax deducted at source (TDS) is more than your total tax liability in a given financial year, you are eligible for a tax refund.

The easiest way to file for your tax refund is to declare your investments in Form 16 (life insurance premiums paid, house rent being paid, investments in equity/NSC/mutual funds, bank FDs, tuition fees, etc.) while filing your IT return and submit the necessary proofs. If you’ve failed to do so and have been paying extra taxes you think you could have avoided, you will need to fill out Form 30.

What is Form 30

Form 30 is basically a request for your case to be looked into and the excess tax that you have paid is refunded.

Over 1 crore ITRs have been filed till June 26

The income tax department on Tuesday said over 1 crore ITRs have been filed till June 26.

In a tweet, the I-T department said “Over 1 crore ITRs have been filed till 26th June this year compared to 1 crore ITRs filed till 8th of July last year,” it mentioned.

We respect our taxpayers for early submitting of Income Tax Returns (ITRs)!

Over 1 crore ITRs have been filed until twenty sixth June this 12 months in comparison with 1 crore ITRs filed until eighth of July final 12 months.

The 1 crore milestone reached 12 days early this 12 months in comparison with corresponding…

— Income Tax India (@IncomeTaxIndia) June 27, 2023

The division additionally urged taxpayers to file their ITRs early in order to keep away from the last-minute rush.

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Updated: 27 Jun 2023, 01:47 PM IST