What to do if you have not got tax refund yet ?

What to do if you have not got tax refund yet ?

RDJ Consultants   October 22, 2019

What to do if you have not got tax refund yet ?

Are you wondering why you have not received your income tax refund yet despite having filed your income tax return (ITR) within the due date for assessment year (AY) 2019-20? There could be various reasons for the same. However, a common reason could be furnishing incorrect bank account details in the ITR form.

While tax refund was earlier issued either in the form of cheque or direct credit to bank accounts, the income tax department now credits tax refunds only in the form of direct credit in the bank accounts of taxpayers. Moreover, from this AY, these accounts need to be pre-validated and linked to the taxpayers’ permanent account number (PAN).

You are eligible to claim a refund if excess income tax has been deducted from your income during the year. This could happen in cases of multiple incomes or where tax is deducted at source (TDS). The income tax department does refund this excess tax paid, but you have to apply for it when filing your ITR for the relevant financial year.

Track the status

In case you have not received your refund yet, you first need to check the status of your refund. “About five to six years ago, one had to approach the assessing officer to find out the status of refunds. Now one can check it online within minutes," said Amit Maheshwari, partner, Ashok Maheshwary and Associates Llp, a chartered accountancy firm. Except in few cases, now most people get their refunds in a few months of filing returns, added Maheshwari.

You can track the status of your refund on www.incometaxindia.gov.in or www.tin-nsdl.com. Click on “Status of Tax Refunds" tab, enter your PAN and the AY for which you want to track the refund. If the refund has been processed, a message will pop up, stating the mode of payment, a reference number, status and date of refund.

However, if there is an issue because of which refund has not been issued or declined, the message will say so. For instance, if the message states “refund unpaid", it could be because the bank account details (account number or IFS Code) that you have submitted to the income tax department are wrong. In that case, check your bank account details you have mentioned in your ITR.

Bank account information

According to income tax rules, you are supposed to provide details of all the savings and current accounts held by you at any time in India during the previous year, while filing your returns. It is not mandatory to provide details of dormant accounts which have not been operational for more than three years. However, “if the income from all the bank accounts has been duly included though the details of the account itself may have been omitted, no penalty may be leviable in such cases," said Maheshwari.

If you have more than one bank account, you are required to indicate the account in which you would like to get your refund credited, irrespective of whether you have a refund or not. Bank details include the name of the bank, account number, and the 11-digit IFS Code of the bank or details of international bank account number (IBAN) in case you have a foreign bank account.

Taxpayers who filed returns for AY2019-20 were also required to ensure that the bank account chosen for the refund is pre-validated with the e-filing account and linked with their PAN.

Failure to provide any of the above mentioned details may result in the refund not getting credited.

Making correction

If you find you have made a mistake in providing your bank account details, you have the option to update it, before placing a request for re-issue of refunds.

Remember that you can update your bank account details only in case where your return has been processed and your refund was failed or not credited in your bank account because of an issue with your bank account details.

In such a case, you need to modify your account details and place a request for reissue of refund. It can be done online by logging into the e-filing portal, www.incometaxindiaefiling.gov.in, with your user ID and password. Next, go to “My Account" and then click on “Refund re-issue request". Follow the steps and enter the new bank account number or make a correction in the already mentioned bank details and submit the request.

Before doing so, make sure this account is linked with your PAN and is pre-validated. In order to link your bank account with PAN, you need to visit your bank’s branch with a copy of PAN. It is a simple process and does not take much time. Once you link your bank account with PAN, pre-validate the bank account through the income tax e-filing account. Log on to e-filing accounts, go to “profile setting" and choose which bank you want to pre-validate. You will need to provide information like bank name, bank account number, IFS Code, mobile and email ID to validate your bank account.

Once you update the bank account and place a request for reissue of refunds, it will most likely get credited to your account in a few days.

10 Reasons Why You Have Not Received Your Income Tax Refund

10 Reasons Why You Have Not Received Your Income Tax Refund

RDJ Consultants   October 09, 2019

10 Reasons Why You Have Not Received Your Income Tax Refund

Every taxpayer in India awaits the time when he/she gets the tax refund. The government of India proceeds the refunds after you have filed the tax returns. As per the IRS (Indian Revenue Service) norms, it generally takes about 21 working days to issue the refund after it is processed.

If you do not receive the refunds beyond the stipulated time, the delay could be because of various reasons. Before you hit the panic button, it advisable that you check your income tax refund status online. You can also call the check the status of your refund by calling the IRS hotline. Typically, the delay in the tax refund happens because of the following reasons:

1. Incorrect information

While filing your returns if you have committed any mistake or if the IRS finds a numerical error, it can significantly slow down the refund process. When an error is detected, the return is earmarked for review, which means that the IRS employee will personally go through the file and identify the mistake. This can extend the refund process by a few days or weeks.

2. Victim of tax fraud

While you check income tax refund status online, check if you have become a victim of tax fraud; your tax refund might be delayed because of identity theft. If someone else uses your social security number or if the tax prepare alters the direct deposit information, you can become the victim of a fraud and getting refund will be delayed until the situation is resolved.

3. Form 8379

If you have filed a joint tax return with your spouse and if all or a part of the tax refund was applied the spousal support debts, your own refund can be delayed. In such a case, you need to fill Form 8379 for injured spouse allocation. This process usually takes about 60 to 90 days to process.

4. Spousal demise

A common income tax refund enquiry is related to the death of a spouse. If your spouse was due for returns, but if they passed away before filing the tax refund, you would need to submit IRS Form 1310 (Statement of a Person Claiming Refund Due to a Deceased Taxpayer) to avoid delay in your refund.

5. Communication address not update

This is another common reason why several people experience a delay in receiving their tax refund. If the communication address provided is wrong, you need to update the same on the income tax website before you claim the refund back.

6. False Bank Account Information

Today, most people prefer getting their tax refund deposited directly into their bank account than getting the paper cheques as it takes longer to process the refunds. However, to ensure that you get online income tax refund without delay, you must enter the bank information correctly. Even a simple mistake like spelling error in the name or entering incorrect bank account number can delay the refund by a few weeks or even months.

7. The IT department needs additional information

If the IT department while assessing your tax refund claim finds that your claim for the refund is questionable, then they might request you to provide supporting documents to support the claim. In such cases, the refund on tax returns will be delayed until you provide the necessary documents.

8. Defective returns filed

Your income tax refund process can be delayed if the IT department treats your income tax returns file as a defective return. In case of delay of the tax refund, you can check income tax refund status online on the income tax website.

9. Amendments made to the returns file

In some cases, you may want to make changes in the tax returns after it is filed. The amendment may be necessary because you realised that made a spelling error or you have missed out on claiming a deduction. In such cases, the processing time can be extended by 12 to 16 weeks before the refund is initiated.

10. Refund adjusted with outstanding demand of the previous year

If your online income tax refund status shows, refund claim rejected it could because the refund tax refund for the current year would have been adjusted with the outstanding demand of the previous years.

So, now that you know the various reasons why tax refunds could be delayed, check your status online and take appropriate measures to claim the refund.

how to track income tax refund

How to track income tax refund status and get refund on time Income Tax Refund 2019

How to track income tax refund status and get refund on time Income Tax Refund 2019

RDJ Consultants   October 01, 2019

How to track income tax refund status and get refund on time Income Tax Refund 2019

A taxpayer is eligible to receive an income tax refund when excess taxes have been paid by him either through tax deduction on payments made to him or direct tax payments as advance or self assessment tax.

A taxpayer is eligible to receive an income tax refund when excess taxes have been paid by him either through tax deduction on payments made to him or direct tax payments as advance or self assessment tax. A refund may arise under various scenarios – lesser taxable income than earlier envisaged, additional deductions/ exemptions that may not have been projected earlier etc.

In recent times, the Income Tax Department (ITD) has implemented several measures to process refunds on an ‘auto’ mode though the CPC. The process is being streamlined and there has been focus towards further improvements to make refunds hassle-free for taxpayers. However, there could be several instances where an individual faces challenges in getting refunds.

It’s important to follow some simple steps to claim the refund of excess taxes paid:

The first step is to file income tax return for the AY and e-verify the same immediately. Once the tax return is filed and e-verified by the taxpayer, the return of income would be taken up for further processing by the ITD and an intimation would be sent intimating if the return is accepted as filed and the refund due for the year.

Tracking income tax refund status:

In case of delay in issue of refund or if the taxpayer has not received the refund claimed on the tax return within a reasonable period of time, he/she could check the status of the same by following any of the below options:

1. Taxpayer may visit https://tin.tin.nsdl.com/oltas/refundstatuslogin.html. The PAN number and the AY for which the refund is due needs to be filled and submitted to find out the refund status, or

2. Taxpayer may log in to his/her income tax account in the income tax portal and click on My accounts> Refund/Demand Status and enter the relevant AY for which refund status to be checked.

A taxpayer has to keep note of the following points while analysing the refund status:

1. Outstanding Income tax demands: The ITD, while processing the tax return, would check the details of outstanding tax demand pertaining to the taxpayer for any of the earlier years. In case of any outstanding tax demand reflecting against the taxpayer’s PAN, a communication would be sent to take necessary actions to get the tax demand nullified. If no action has been taken by the taxpayer on such tax demands, the refund due for the AY would be adjusted with the outstanding tax demands of earlier years. In order to minimise the time involved in refund processing by the ITD, it is advisable for the taxpayer to verify the outstanding tax demands for earlier years in advance and take necessary action without waiting for the communication to be received from ITD so that the refund can be issued quickly. This process is enabled by the ITD through the details made available year by year on the IT portal.

2. Pre-validation of bank account: As per the new process of refund issue, it is required for a taxpayer to pre-validate his/her bank account in his/her account in the income tax portal to get the refund amount directly credited to the designated bank account. Hence, the taxpayer has to ensure that pre-validation of bank account is completed at the time the return is filed or before the processing of the return by the CPC.

3. Transfer of return of income to Jurisdictional tax officer: Sometimes it so happens that the tax return filed for the year is transferred to the tax officer who has jurisdiction over the PAN of the taxpayer from CPC, Bengaluru for verification of claims made in the income tax return. In such cases, meeting of tax officer and follow-up on refund is required to speed up the refund issue process. It is vital to keep all details at hand to substantiate claims made in the return so that prompt action may be taken in response to queries raised by the officer.

4. Filing of grievance petition: A taxpayer can also file a Grievance Petition (GP) in his/her account on the income tax portal to seek resolution from CPC, Bengaluru or the jurisdictional tax officer (in case of transfer of return to jurisdictional tax officer) on the refund issue.

There are technical issues that are faced by taxpayers in certain cases, where the matter may need to be raised with the CPC for necessary action. For instance, in case of a foreign national who has repatriated to his home country, post validation of the bank account, a taxpayer is required to complete an online refund reissue request to receive the refund into a pre-validated India account. This process requires an e-verification either through Aadhaar OTP or Digital Signature. These options are not feasible in case of repatriated foreign nationals as they do not hold an Aadhaar card/India mobile number or DSC. Suitable solutions to address such challenges will need to be provided by the ITD.

A proactive approach by the taxpayer in filing tax returns on time and taking necessary actions, as mentioned above, would help in processing refunds on time.

What is TDS ? Applicability of TDS | What kind of transaction liable to TDS ?

What is TDS ? Applicability of TDS | What kind of transaction liable to TDS ?

RDJ Consultants   September 15, 2019

What is TDS ? 

TDS stands for tax deducted at source. As per the Income Tax Act, any company or person making a payment is required to deduct tax at source if the payment exceeds certain threshold limits. TDS has to be deducted at the rates prescribed by the tax department.

The company or person that makes the payment after deducting TDS is called a deductor and the company or person receiving the payment is called the deductee. It is the deductor’s responsibility to deduct TDS before making the payment and deposit the same with the government. TDS is deducted irrespective of the mode of payment–cash, cheque or credit–and is linked to the PAN of the deductor and deducted.

(As per the income tax act) TDS is deducted on the following types of payments:

Section - 192 Salaries

Section - 192(A) TDS on PF withdrawal
Section - 193 Interest on Securities
Section - 194 Dividends
Section - 194(A) Interest other than 'Interest on securities' 
Section - 194(B) Winning from lottery or crossword puzzle 
Section - 194(BB) Winning from horse race 
Section - 194(C) Payments to contractors and sub-contractors 
Section - 194(D) Insurance commission 
Section - 194(DA) Payment in respect of life insurance policy 
Section - 194(E) Payments to non-resident sportsmen or sports associations 
Section - 194(EE) Payments in respect of deposits under National Savings Scheme
Section - 194(F) Payments on account of repurchase of units by Mutual Fund or  Unit Trust of India 
Section - 194(G) Commission, price, etc. on sale of lottery tickets 
Section - 194(H) Commission or brokerage 
Section - 194(I) Rent 
Section - 194(IA) TDS on Sale of immovable property 
Section - 194(J) Fees for professional or technical services 
Section - 194(K) Income payable to a resident assessee in respect of units of a specified mutual fund or of the units of the Unit Trust of India 
Section - 194(LA) Payment of compensation on acquisition of certain immovable 
Section - 194(LB) Income by way of Interest from Infrastructure Debt fund 
Section - 194(LC) Income by way of interest from specified company payable to a non-resident 
Section - 194(LBA) Certain income from units of a business trust 
Section - 194(LBB) Income in respect of units of investment fund 
Section - 194(LBC) Income in respect of investment in securitization trust
Section - 194(LD) TDS on interest on bonds / government securities 
Section - 195 Other sums payable to a non-resident 
Section - 196(A) Income in respect of units of non-residents 
Section - 196(B) Payments in respect of units to an offshore fund 
Section - 196(C) Income from foreign currency bonds or shares of Indian 
Section - 196(D) Income of foreign institutional investors from securities 
Section - 206(CA) Collection at source from alcoholic liquor for human 
Section - 206(CB) Collection at source from timber obtained under forest lease 
Section - 206(CC) Collection at source from timber obtained by any mode other  than a forest lease 
Section - 206(CD) Collection at source from any other forest produce (not being tendu leaves) 
Section - 206(CE) Collection at source from any scrap 
Section - 206(CF) Collection at source from contractors or licensee or lease relating to parking lots 
Section - 206(CG) Collection at source from contractors or licensee or lease relating to toll plaza 
Section - 206(CH) Collection at source from contractors or licensee or lease relating to mine or quarry 
Section - 206(CI) Collection at source from tendu Leaves 
Section - 206(CJ) Collection at source from on sale of certain Minerals 
Section - 206(CK) Collection at source on cash case of Bullion and Jewellery 
Section - 206(CL) Collection at source on sale of Motor vehicle 
Section - 206(CM) Collection at source on sale in cash of any goods(other than bullion/jewelry) 
Section - 206(CN) Collection at source on providing of any services(other than Ch

However, individuals are not required to deduct TDS when they make rent payments or pay fees to professionals like lawyers and doctors.

TDS is one kind of advance tax. It is tax that is to be deposited with the government periodically and the onus of the doing the same on time lies with the deductor. For the deductee, the deducted TDS can be claimed in the form of a tax refund after they file their ITR.

What is TDS return?

A deductor has to deposit the deducted TDS to the government and the details of the same have to be filed in the form of a TDS return. A TDS return has to be filed quarterly. Different types of TDS deductions have to be filed using different TDS return forms.

Know Applicability and rates of TDS According to Section 

RDJ Consultants

Contact us +91 9711905747 / or email at: rdjconsultants1@gmail.com