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SYNMAC CONSULTANTS PVT LTD,

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INCOME TAX

INTRODUCTION:

The Income Tax Act 1961:

Income tax act is the charging Statute of Income Tax in India. It provides for levy, administration, collection and recovery of Income Tax. Recently the Government of India has brought out a draft statute called the "Direct Taxes Code" intended to replace the Income Tax Act,1961 and the Wealth Tax Act, 1957. Public Commentary has been called for the Draft Bill.[1] The redrafted bill is supposed to be made public soon.

FIVE HEADS OF INCOME TAX:

As per section14 of the Income Tax Act, for the purpose of charging of tax and computation of total income, all incomes are classified under the following 5 Heads of Income: Salaries, House Property, Profits and Gains of Business of Profession, Capital Gains, Other Sources.

DOCUMENTS REQUIRED FOR FILING INCOME TAX: Salaried Person: PAN Card, Pay Slip (for 12 months), FORM 16, BANK STATEMENT,

Last Date for Filing: September 30th or on such due date as extended by CBDT

Individuals: Company PAN Card, Bank Statement, Sale and purchase invoice, Expenses Vouchers, Business details, Last Date for Filing: July 31st. Partnership Firms: Firm PAN Card, Bank Statement, Sale and purchase invoice, Expenses Vouchers, Business details.

Last Date for Filing: September 30th or on such due date as extended by CBDT.

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WHAT IS INCOME TAX REFUND?

Income Tax Refund is referred to the amount of excess tax paid which is returned to the taxpayer. The refund is the difference between the actual tax paid and the actual tax payable. Refund arises when taxes paid are higher than your actual tax liability (including interest). It could be in the form of advance tax, self-assessment tax, tax deducted at source, foreign tax credit etc. Income Tax refund arises in case of a mismatch between the tax amount paid and the actual payable amount. If the amount paid is higher than the actual amount payable, a refund is initiated. The Form 30 is used for the same purpose. 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. The Income Tax Department of India gives a service to check the income tax refund status online. The online refund portal makes it easy for the taxpayer to verity their tax refund status. The tax refund payment can be made directly to the taxpayer's account electronically or through a refund cheque. Proper details about the Account number, IFSC Code and address must be filled while e-filing the income tax return by the taxpayer. The service of speed post is used for sending the refund cheques.

PROCESS TO CLAIM INCOME TAX REFUND:

There is no separate procedure as such in order to claim an income tax refund due to you. You can claim tax refund by simply filing the return of income in the usual manner. Ensure your return is electronically verified through aadhar number otp, EVC generated through bank account or physically verified by posting the signed ITR-V (acknowledgement) to Centralised Processing Centre (CPC) within 120 days of filing the return.

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 for your case to be looked into and the excess tax that you have paid is refunded. Your income tax refund claim needs to be submitted before the end of the financial year. Your claim needs to be accompanied by a return in the form (prescribed under section 139).

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