Income tax returns: Are you eligible for refund?

BANGALORE, INDIA: As the July 31 deadline nears, it is essential to know that the filing of IT returns is must, but it is not mandatory that every one gets a refund. The Income Tax refund is applicable to those employees who have paid additional tax as IT-R.

This scheme of IT refund is termed the “Refund banker Scheme” and has been effective since January 24, 2007.

The status of the “Refund Paid” are reflected in the “Tax Credit Statements” in the Form 26AS.

Srikala Bhashyam, a Bangalore-based auditor, says: "All employees (working under a common employer where the employer deducts the tax in the salary) who have paid additional tax as IT-R are eligible for a refund. In the case of self-employed people, this question doesn't arise as they themselves compute the IT-R that they have to file."

Online filing of IT returns is considered to be more effective and is said to eliminate the dependence on the middlemen to file IT-R.

"Even major chartered accountants nowadays prefer to use the online portal for filing the IT-R and to obtain IT-R refund. The only issue here is that a relatively high speed broadband internet is required and the load on the server will be more as the deadline for Income Tax filing nears," she says.

In order to enable assessees to obtain a clear position regarding the refunds for which they are eligible, the IT department has set up a dedicated portal which gives every information related to all aspects of IT refunds.

Srikala says: "People should always remember to send the acknowledgment that they receive to the IT department, located in Bangalore. The online portal is also a blessing in disguise as many auditing firms have stopped offering middlemen service to clients."

She cautions: "Remove the Income Tax phobia from your mind as the entire process of IT is just to ensure efficiency and transparency."

Normally, people get refunds within a year. "There are several instances of individuals obtaining refunds in two-three months as well. If you get your documentation right, then your refunds will be processed on a priority and you will be entitled for an early refund," she says.

She feels salaried class is the biggest gainer. "Because the entire process is custom-made for them. The salaried class will not be subjected to any sort of inconvenience," she says.

Also read: Tips for efiling of Income Tax