FY 2023–2024 income tax return filing and Tax refund deadline: July 31, 2024 is the deadline for AY 2024–2025 income tax returns. salaries individuals are waiting on their employers to submit their Form 16, which should arrive in a week or two. They will be able to simply file income tax returns after they obtain Form 16. Nevertheless, if a taxpayer utilizes other papers, such as Form 26AS, the Annual Information Statement (AIS) or Tax Information Summary (TIS), disclosures about capital gains, bank statements, home loan statement and interest certificates from bank.
When filing their taxes, taxpayers should try to minimize their tax liability by utilizing all of the deductions and exemptions that are available. But, the amount of such a deduction or exemption must be accurately calculated after taking the tax system, residential status, and other factors into account.
Here are five easy ways to optimize your income tax refunds if you’re getting ready to file your ITR and think you should be eligible for one given the taxes you’ve previously paid. If a taxpayer’s income tax payment exceeds their actual tax burden, they may be eligible for a refund under Section 237 of the IT Act. To maximize their tax refunds, taxpayers might make sure of the following:
Read more:- Income Tax: Know these 5 key points before filing ITR early
Avail the benefit of all applicable deductions and exemptions:
When filing their taxes, taxpayers should try to minimize their tax liability by utilizing all of the deductions and exemptions that are available. But, the amount of such a deduction or exemption must be accurately calculated after taking the tax system, residential status, and other factors into account.
Timely e-verification of the tax return:
Income tax return which is not verified within the stipulated time would be considered as invalid. Since e-verification is the most convenient and fast way to verify the tax returns, taxpayers should e-verify the tax returns within 30 days from the date of furnishing the return. Alternatively, the tax return can also be verified by sending the physical copy of ITR-V to CPC, Bangalore.
Read more:- Salaried Individuals must wait until June 15 to file ITR
Reconcile Form 26AS / AIS / TIS
Excess tax paid on account of TDS and TCS is one of the main causes of refunds. Therefore, the taxpayer may receive a smaller refund if there is a difference between the amounts of TDS and TCS according to the records of the revenue authority and the taxpayer. Consequently, if a taxpayer notices any differences between Form 26AS and AIS, they should, in the case of an error in AIS, submit feedback via the portal so that it can be corrected, and in the case of an error in Form 26AS, they should notify the deductor about the variation and ask them to correct any errors or omissions on their end.
Check for any adjustment of refund for the year against any outstanding demand for any previous financial years:
The revenue authorities often adjust the refund for the current year against previous year’s outstanding demand. Thus, the taxpayer must keep track of any Intimations issued u/s 245 of the IT Act for intimation of any such refund adjustment.
Revalidation of bank account details:
The taxpayer needs to prevalidate their bank accounts using their name, mobile number and PAN in order to receive Income Tax refund. Additionally, the taxpayers should ensure that the bank details (such as account no., IFSC Code, etc.) are correctly provided at the time of furnishing the tax return.
Consult a tax professional:
If you have complex financial situations or are unsure about optimizing your tax refunds, consider consulting a tax professional who can provide personalized advice based on your circumstances.
Read more:- I-T Dept Issues Reminder: Link PAN with Aadhaar by May 31 to avoid higher TDS
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