Income Tax Refund Procedure

What is Income Tax?

Income tax is a direct tax. It’s paid by everyone like individuals, HUF (Hindu Undivided Family), AOP (Associates of Person), BOI (Body of Individuals), corporate firms, Local authorizes, Companies and all other artificial juridical person that generates the income during a financial year.

Income Tax Refund: refund arises in those cases where the amount of tax paid by a person is more than the amount on which he/she is properly charged. This is noted u/s 237 to 245 of the Income Tax Act 1961.

Eligibility for Income Tax Return:

1.  If the tax you have paid in advance on the basis of self assessment is more than the tax payable on the basis of regular assessment. 
2.  If the TDS (Tax deducted at source) from salary, interest on security or debentures, dividend etc., is higher than the tax payable amount on the regular assessment. 
3.  If tax charged on regular assessment, get reduced due to an error in assessment process is resolved.

     4. If same income is taxed in foreign country (Government of India has avoid double taxation) and in India as well.
     5.Some investment which offers tax benefits and deductions are allowed which is not declared. 
     6. After the consideration of taxes you have paid and deduction you are allowed that tax paid amount is in the negative.

Procedure for claim Income Tax Refund:

The easiest way to file for your tax refund is declared your investments in Form 16 (life insurance premiums paid, house rent paid, investment in shares/NSC/mutual funds, bank fixed deposit, tuition fees etc.). When your filing ITR and submitted necessary documents, if your are fail do that have been paid some extra taxes you think you could avoided, you will need to fill Form -30.

Form-30 is basically a request for your case be looked into and your excess tax paid is refunded. Income tax refund claim need to be submitted before the end of the financial year. Your claim need to be accompanied by return in the form (prescribed under section 139).

Sample for Form-30

             I,………………………………………………………(your name), of …………………………………………………(address), do hereby stated that my total income computed in accordance with the provisions of Income Tax Act 1961, during the year ending on ……………(year) begin the previous year of assessment year commencing on the 1st April …………(year), amounted to Rs. …………….(amount); that the total income tax chargeable in respected of such total income is Rs. ………………(amount) and that the total amount of Income Tax paid or treated as paid under:

Section 199, is Rs……………. (amount).

I, therefore, a request for a refund of Rs……………(amount).

 Signature

(                        )

 I hereby declared that I was resident / resident but not ordinarily resident/ non- resident during the previous year relevant to the assessment year to which this claim relates and that what is stated in application is correct.

Dated: …../……/…………

Signature

(                         )

Note:

 1. This claim should contain a document of proof of return of income in a prescribed form, unless you have already made such claim to the Assessing Officer.

2. Non -residents whose income is subject to TDS should make a claim for refund to the “Assessing Officer, Non-resident refund circle, Bombay”.

3. If you have been charged tax under the provision of section 192 to 194, section 194A, and section 195 on your total income consists (dividend etc.) the claim should be accompanied by the necessary certificates recommended under section 203.

 Source  Form 30 : www.webtel.in/Image/30.pdf