Taxpayers can claim for tax refund after filing the return of income for a particular year. Usually the return filing due date each year is 31st of July. The tax department will notify if there is any extension in date.
Who is eligible for tax refund?
The amount of tax paid by an individual for any year exceeds the amount of tax payable by him, he shall be eligible to a refund of the excess tax paid by him.
Tax payers can claim if tax deducted at source (TDS) from salary, interest on securities or debentures, dividends, etc. is higher than the tax payable.
How to claim Income Tax refund?
The best way is to file your tax refund is to declare your investments in Form 16 such as insurance house rent being paid, investments in equity/NSC/mutual funds, bank FDs, tuition fees, premiums paid, etc.
When you are filing your IT return you need to submit the necessary proofs. In case if you have failed and have been paying extra taxes which could have been avoided, you should fill out Form 30.
If the taxpayer has to make a claim of refund, then the claim should be made in Form No 30. The claim of refund is to be made within one year from the last day of the assessment year.
Many times the taxpayer does not get the refund in due time, in such a case he is granted interest on delayed refund.
The taxpayer will not be entitled to any interest on refund, if the proceedings resulting in the refund are delayed for the reasons attributable to the taxpayer.
Tax refund or excess tax paid will be refunded to you by crediting your bank account using your 10 digit account number and MICR code, through the State Bank of India. Some times you will receive tax refund through cheque to your mailing address. So it is always better to update your contact details and mailing address with the tax department.
If your cheque is returned due to some reason and you wish to apply for re-issue of cheque here is the procedure for the same.