The last date for filing income tax returns (ITR) earned in the 2022-23 fiscal is July 31 for salaried taxpayers. However, it is essential to file the return as soon as possible so that an earning individual might receive an ITR refund as soon as possible.
Is your income tax refund taxable?
Some people think that the ITR refund that is credited in their account is also taxable. ITR refund is not taxable. Income tax refund received after filing of income tax return is not taxable, however, interest which is paid is taxable like income from any other sources.
“The interest paid at 0.5% per month (i.e. 6% per annum) is taxable. This interest is paid from 1st April till the date of refund. Note that no interest is payable if the refund is less than 10% of the tax payable. The interest has to be included in the income tax return in the Financial Year in which the refund was received. Any TDS, if deducted on the interest on income tax refund should be claimed against the total tax liability,” 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 said.
The department also urged taxpayers to file their ITRs early so as to avoid the last-minute rush.
Source By: livemint
