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A Tax Refund is referred to the reimbursement to taxpayers of any extra amount paid to the government.
In simple words, a tax refund arises when you pay tax higher than the real Tax Liability. It could be in the form of:
To claim an income tax refund, the government has not proposed a separate process. All you would have to do is file your Income Tax Return (ITR). However, make sure that your return has been -
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In most of the situations, taxpayers receive the refund amount that is higher than the refund claimed in the returns. This difference signifies the interest on the refund. Payable by the Income Tax Department, the interest is mandatory if the refund is up to 10% or more than the paid tax amount.
Under the section 244A of the Income Tax Act, you can easily find provisions regarding the refund and interest rates. Basically, on the refund amount, the interest amount is 0.5% a month. Such an interest is calculated from 1st April of the assessment year till the refund or grant date.
If you’ve applied for the refund, you can check the status online by following the below-mentioned steps:
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