What is income tax?
The government imposes a tax on taxable income of all persons who are individuals, Hindu Undivided Families (HUFs), companies, firms, association of persons, body of individuals, local authority and any other artificial judicial person. Levy of tax is different on each person. Indian Income Tax Act, 1961 levies and governs income tax. The Indian Income Tax Department is administered by CBDT which is part of the Department of Revenue under the Ministry of Finance, Govt. of India. Income tax is a key source of funds that the government uses to fund its activities and serve the public.
What is an Income Tax Refund?
Under the income tax and other direct tax laws, refunds arise in those cases where the amount of tax paid by a person (or paid on his/her behalf) is greater than the amount on which he/she is properly chargeable. This is noted under Sections 237 to 245 of the Income Tax Act, 1961.
Am I eligible for an income tax refund?
There are many cases wherein you will be eligible for a refund. Some of them are:

  • If the tax you’ve paid in advance on the basis of self-assessment is more than the tax payable on the basis of regular assessment.
  • If your tax deducted at source (TDS) from salary, interest on securities or debentures, dividends, etc. is higher than the tax payable on the basis of regular assessment.
  • If the tax charged, based on regular assessments, gets reduced because an error in the assessment process was resolved.
  • The same income is taxed in a foreign country (with which the government of India has an agreement to avoid double-taxation) and in India as well.
  • If you have investments which offer tax benefits and deductions that you have not declared.
  • If you find, after considering the taxes you’ve paid and the deductions you are allowed, that the tax paid amount is in the negative.
What are the benefits of filing my Income Tax Returns?
Many individuals assume that filing of returns is a harrowing experience. But now-a-days an individual can file a return very easily and quickly. Filing of Income Tax Returns helps an individual in many ways. It helps an individual to manage his financial affairs effectively. The benefits of filing of Income Tax Returns are as follows:

  • It becomes your standard income proof
  • You can get loans sanctioned quickly and easily
  • You can trade in stocks, open bank accounts, get bank credits, make investments etc. and you can do all these with ease if you remain good in the financial institutions books by filing your tax returns.
  • You can claim your refunds for taxes deducted or paid in excess of your tax liabilities.
  • Many foreign countries want to know how financially sound you are before they grant you with a visa. So to prove your financial worth, Income Tax Returns are a must.
  • Not to forget, it is your obligation. The taxes you pay on your income will work towards betterment of our nation.
  • For professionals and business organisations, Income tax returns are a must to become eligible to secure certain tenders
What is PAN card and why it is required?
A PAN card is a 10 digit unique number that is assigned to every taxpaying individual and entity in India. The PAN card was designed solely for the purpose of helping the government identify taxpayers and ensuring these entities paid the taxes due as per the tax slabs they fall under. While many think a PAN card is only required at the time of filing your Income tax returns, which is usually once a year, there are a number of uses that the PAN card fulfils relating to income tax.
Is it necessary to provide Aadhaar card details when filing Income Tax Returns?
While it is not mandatory to provide your Aadhaar details, it is good if you link the two. For one, your e-verification process for ITR V becomes easier. However, before you link, make sure that your Aadhaar and PAN card details match. In case they don't, save the task for later. A mis-match in the two documents can create unnecessary complications.
Do I need to report all my bank accounts when filing Income Tax Returns?
The government has made it mandatory to list all bank accounts in the ITR form. A common query is whether one needs to report every single account including those that are no longer active. The answer to that question depends on how long the account has been inactive. So, one can omit giving details of those accounts which haven’t been in operational for the past 36 months, since those are considered dormant.
How can i claim my income 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. Form 30 is basically a request that your case be looked into and your excess tax paid be refunded. Your income tax refund claim needs to be submitted before the end of the financial year. You claim needs to be accompanied by a return in the form (prescribed under section 139).
What is Tax Deduction At Source (TDS)?
TDS or Tax Deducted at Source is a means of indirect tax collection by Indian authorities according to the Income Tax Act, 1961. TDS is managed by the Central Board of Direct taxes (CBDT), which comes under the Indian Revenue Services (IRS). TDS is collected as a means to keep a stable revenue source for the government throughout the year, while desisting people from avoiding taxes.
What is Form 26AS?
Form 26AS is a summary of taxes deducted on your behalf and taxes paid by you. This is provided by the Income Tax Department. It shows details of tax deducted on your behalf by deductors, details on tax deposited by taxpayers and tax refund received in the financial year. This form can be accessed from the IT Department’s website.
If I have paid excess tax how will it be refunded to me?
The excess tax can be claimed as refund by filing your Income-Tax Returns. It will be refunded to you by crediting your bank account through ECS transfer. The department has been making efforts to settle refund claims at the earliest.
How do I track my Income Tax refund?
The IT department allows you to track the status of your refund. If your refund procedure has not been completed by your officer in charge, you will receive a message notifying you of the same
What is the time limit for submitting ITR-V to Income Tax Department?
You should mail your ITR-V within 120 days of e-filing your return.
What is the maxmium deduction available under section 80D of Income tax Act?
  • For individuals less than 60 years of age, amount of health insurance premium paid or Rs. 15,000, whichever is lesser. ( From 01.04.2015, Limit for medical insurance premium is increased to Rs 25000/-)
  • For senior citizens above 60 years, amount of health insurance premium paid or Rs. 20,000, whichever is lesser.( From 01.04.2015, Limit for medical insurance premium is increased to Rs 30000/-)
What are the consequences of not filing it returns?
  • If you don’t file your return in time, you will have to pay interest on your tax dues when you file at a later date.
  • If you have incurred losses, you can not carry forward the same to subsequent years if you do not file your return.
  • You could become liable for a penalty or Prosecution by the Income Tax Department if you conceal or fail to disclose your income.
What to do if I have filed an erroneous return?
One of the advantages of filing your return on time is that you are allowed to revise it any time you want. If you have not verified your ITR V yet, you can just refile. Even if you have verified, you can file a revised return under S Section 139(5) with correct particulars.
What is TAN?
Tax Deduction Account Number or Tax Collection Account Number is a 10 -digit alpha-numeric number issued by the Income-tax Department. TAN is to be obtained by all persons who are responsible for deducting tax at source (TDS) or who are required to collect tax at source (TCS).
How to apply for TAN?
There are two modes for applying for TAN:
· OFFLINE - An application for allotment of TAN is to be filed in Form 49B in duplicate and submitted to any TIN-FC. Addresses of TIN FCs are available at NSDL TIN website (https://www.tin-nsdl.com).
· ONLINE — Online application for TAN can be made from the website of NSDL TIN website.