Thursday, August 11, 2016

File Your ITR Online To Claim Tax Refunds

ITR filing and Tax RefundsYou can file your return of income for claiming refund of taxes even if your income does not exceed the exemption limit due to TDS. Your employer, Banks & financial institutions deduct TDS sometimes more than your tax liability which you can easily claim by filing your Income tax return. This return for claiming the refund of excess taxes paid can be filed within a period of two years from the end of the financial year for which the claim of refund is related.

Filing of tax return these days have become very easy and in many cases even free through several e-filing portals such as H&R Block which also provides assistance in case you are stuck somewhere. All you need to do is to check your tax liability using an Income tax calculator and if you have paid more than what you are liable to pay then file your return online to claim the refund of excess tax paid. 

While filing your tax return online make sure:

1. You have downloaded form 26 AS (Tax Credit statement) from Income Tax Department website which contains all the information about the tax deposited against your PAN no. 

2. You have the correct tax credit statement for the current assessment year. Many people still confuse between Assessment Year and Financial year and end up filing wrong returns using incorrect tax credit statement. For the income earned between 1st April 2015 to 31st March 2016, the Assessment year is AY 2016 -17 while financial year is FY 2015-16.

3. You have cross-checked your TDS deductions with the figures reflected in Form 26AS, especially if you have interest income from bank deposits or any other sources. 26AS also contains any TDS deducted by banks for the interest payment on your deposit or savings.

4. You have correctly filled up “Income from other sources” in the ITR form which includes interest on bank or other deposits, taxable dividends, income from securities by way of interest, pension received by the legal heirs of an employee, income from subletting, winnings from lotteries, races and gambling. 

Once you are done with e-filing you can check the status of your Tax refund easily using the following link:

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