1. Income Tax Refund: Paid more tax than required? Here’s how you can get it back

Income Tax Refund: Paid more tax than required? Here’s how you can get it back

If you forget to tell your employer about your tax deductions and have paid more tax than required, you need not worry. Here's how you can get back your income tax refund.

Updated: July 27, 2017 2:02 PM
tax deductions, TDS After receiving your Form 16, you should make sure you don’t forget to self-assess your tax.

By Abhishek Soni

We have all been there. Sitting in front of computers and waiting for our employer to send us Form 16. But the moment it arrives, you notice that the tax deducted from your salary is more than what should have been deducted. So, what went wrong? You simply forgot to give your employer the details of all the deductions and investments.

Why should I give the details of my Tax Deductions to my employer?

# Return filing process will be simple. You will only have to file your return with Form 16;

# Self-assessment of your income will not be required, which means you will not have to go through the pain of calculating your taxes again;

# TDS will not be deducted if your net taxable income, after giving effect to your deductions, falls below the basic exemption limit.

# The employer will consider the investments made by you and deduct the TDS accordingly. This means your Tax deduction is less and you receive more in hand salary.

Ok, but what can I do now?

After receiving your Form 16, you should make sure you don’t forget to self-assess your tax. Self-assessment means calculating the tax payable by you. First, add your income from all the sources. Then, subtract all the deductions available to you. This will give you the net taxable income. Calculate tax payable by you as per the slabs, and then deduct all the TDS deducted on your behalf. This will show if you have to pay more tax, claim refund or the tax deducted is correct.

Will this process get me the Refund?

Yes. Getting refund is very simple. All you have to do is file your return of income. Based on the details given by you, the Income Tax Department will calculate and review the taxable amount. If you are eligible for a refund, it will be paid to you either through a cheque or directly to your bank account.

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And what’s more interesting, if your refund amount is more than 10% of the total taxable amount, you will get an interest @ 6% on the refund amount. So never forget to mention your correct personal details while filing ITR.

What if I have filed my Return of Income but forgot to claim deductions?

The solution is Revised Return. To rectify any mistake while filing your ITR, you can simply file a revised return while claiming all the deductions. A revised return can be filed up to the end of the relevant Assessment Year (A.Y.). For F.Y. 2016-17, the A.Y. is 2018-19. Hence, the revised return can be filed up to 31st March, 2018.

I could not file my Return of Income, Will I still get deductions?

The good news is, you can file a belated return and claim all your deductions. If you somehow still forget to claim your deductions, the government gives you a further opportunity. You can go to the Assessing Officer and ask him to give you a notice u/s 148. However, a belated return can be filed only up to the end of the relevant Assessment Year. For F.Y. 2016-17, A.Y. is 2017-18. Hence, the belated return can be filed up to 31st March, 2018.

A word of caution: If you file a belated return of income, you will not be able to carry forward losses (if any) from Business or Profession and Capital Gains. However, loss from House Property will be allowed to carry forward.

So it all adds up to this:

If you forget to tell your employer about your deductions and have paid more tax than required, you need not worry. All you need to do is file your ITR and claim refund.

(The author is a CA and CEO & Co-Founder at Tax2win.in)

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