Income Tax Refund

Income Tax Refund- Everyone wants it, not all get it!

Income Tax - Refund – Everyone wants it, not all get it!! Income tax refund! Sounds quite familiar, doesn’t it? Many of us would have received a refund from the income tax department in the past as well as many have claimed it but not received the same. So, let’s discuss when and how does one get a […]...

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Income Tax Refund and Right to Information Act (RTI)

Income Tax - If there is one area in the income-tax administration which has remained perennially incurable, it is the Refunds, we shows you an easy way to solve the problem. In a Press Release dated April 19, 2007, the Central Board of Direct Taxes stated: “It has been reported in some sections of the media that a large number of taxpayers are awai...

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Set off of refunds against tax remaining payable – Section 245

Income Tax - Set off of refunds against tax remaining payable as per Section 245 of the Income Tax Act, 1961 Section 245 of the Act empowers the Income Tax authorities to adjust any previous year/s outstanding demand of tax liability with the refund amount due to the assessee. However, this power can be exercised only after issuing […]...

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Section 241A: Withholding of Income Tax Refund

Income Tax - Income tax is a duty levied by the Central Government on the incomes earned by the individuals or non-individual entities. Further, in some cases it so happens that the assessee pays the income tax which is greater than or above the actual income tax liability of that individual for any specific financial year. In the […]...

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Reasons of income tax refund delay & subsequent redressal

Income Tax - An Assessee is entitled to Income tax refund if he has paid more taxes by the way of Tax deducted at source or tax collected at source or self assessment tax or Advance tax as per the provisions of Section-237 of Income tax act, 1961. Income tax refund can only be claimed after filing of Income tax return within the time limit prescribed ...

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Suggestion /representation on 7 Important Direct Tax Issues

Income Tax - Following is the summary of Suggestion /representation on behalf of the taxpayers/professionals in connection with the Direct tax related matter. Detailed reasoning of same is provided in subsequent paragraphs....

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1st April Onward CBDT issued refunds of over Rs. 88652 crore

Income Tax - As per tweet by CBDT on its official Handle-From 1st April onwards CBDT has, so far, issued refunds of over Rs. 88,652 crore to more than 24.64 lakh taxpayers from 1st April, 2020 onwards. Income tax refunds of Rs. 28,180 crore have been issued in 23,05,726 cases & corporate tax refunds of Rs. 60,472 crore […]...

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CBDT prioritise Vivad Se Vishwas Scheme case of demand & Refund

Income Tax - CBDT  desires that all the work related to cleaning up of the tax demands and calculating the tax payable or refundable in respect of all eligible assesses under Vivad Se Vishwas Scheme is taken up on priority and completed by 31st August 2020. Also Read- CBDT directs all CIT(A) to dispose at least 80 appeals […]...

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Income Tax Refund of Rs. 62.36 crore issued during Covid days

Income Tax - Income Tax Department has issued tax refunds at a speed of 76 cases per minute from 8th April to 30th June, 2020. During this period of just 56 weekdays, the Central Board of Direct taxes (CBDT) has issued refunds in more than 20.44 lakh cases amounting to more than Rs. 62,361 crore....

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CBDT issues I-T refunds worth Rs 5,204 Crore issued in last 10 days

Income Tax - As a relief to MSMEs, I-T refunds worth Rs 5,204 Crore issued in last 10 days: CBDT The Central Board of Direct Taxes (CBDT) today said that Income tax refunds to nearly 8.2 lakh small businesses (proprietors, firms, corporate and trusts) worth Rs 5,204 Crore have been issued since 8th April 2020. These income tax […]...

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HC: Interest payable on delayed Income Tax Refund Interest

CIT Vs Syndicate Bank (Karnataka High Court) - CIT Vs Syndicate Bank (Karnataka High Court) Conclusion: When an order of refund was issued, the same should include interest payable on the amount, which was refunded. If the refund did not include interest due payable on the amount refunded, the revenue would be liable to pay interest on the short...

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Delayed Payment of Interest on Delayed Refund is Part of Principal Amount & Eligible for Interest u/s 244A

PCIT Vs Solan District Truck Operators Transport Co-op. Society (Himachal Pradesh High Court) - The issue under consideration is whether the delayed payment of interest on delayed refund becomes part of the principal amount will be eligible for interest under Section 244A?...

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ITAT explains section 244A provisions – Interest on Income Tax Refund

Maruti Suzuki India Ltd Vs CIT (Appeals) (ITAT Delhi) - Maruti Suzuki India Ltd Vs CIT (Appeals) (ITAT Delhi) The Honorable Delhi ITAT recently adjudicated an appeal filed in the case of Maruti Suzuki India Ltd vs Commissioner of Income Tax (Appeals)-IX (ITA No. 2553, 2641/Del/2013) wherein the case before the Tribunal was related to the provisions of s...

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Withholding of Income Tax refund mere due to issue of Scrutiny is not valid

Conner Institute of Health Care And Research Centre Pvt. Ltd. Vs ITO (Delhi High Court) - Conner Institute of Health Care And Research Centre Pvt. Ltd. Vs ITO (Delhi High Court) The exercise of withholding of refund under section 241A of the Act, pursuant to notice u/s 143(2) of the Act, without recording justifiable reasons, is not in consonance with the legislative intent and mandate o...

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Withholding of refund for non-completion of assessment is invalid

Cooner Institute of Health Care And Research Centre Pvt. Ltd. Vs. ITO (Delhi High Court) - Cooner Institute of Health Care And Research Centre Pvt. Ltd. Vs ITO (Delhi High Court) Delhi High Court Direction To Release Refund Withheld Without Valid Reasons And Based On Flawed Assumption only ground for withholding refund is that since case of the petitioner has been selected for scrutiny fo...

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Extension of Time for processing of ITR with Refund claim for AY 2017-18

F. No.225/98/2020/ITA-II - (10/07/2020) - CBDT Extends Time Limit for processing of Income Tax Return with Income Tax Refund Claims u/s 143(1) for AY 2017-18 in Non scrutiny cases till 31.10.2020....

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Income Tax Refund of Rs. 62.36 crore issued during Covid days

NA - (03/07/2020) - Income Tax Department has issued tax refunds at a speed of 76 cases per minute from 8th April to 30th June, 2020. During this period of just 56 weekdays, the Central Board of Direct taxes (CBDT) has issued refunds in more than 20.44 lakh cases amounting to more than Rs. 62,361 crore....

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Tax Refunds amounting to Rs. 26242 crore issued since 1st April 2020

Release ID: 1626051 - (22/05/2020) - Central Board of Direct Taxes (CBDT) has issued tax refunds worth Rs. 26,242 crore to 16,84,298 assessees since 1st April, 2020 to 21st May, 2020. Income Tax refunds amounting to Rs. 14,632 crore have been issued to 15,81,906 assessees and corporate tax refunds amounting to Rs. 11,610 crore have bee...

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E-mails for facilitating faster refund cannot be misconstrued as harassment: CBDT

Release ID: 1616620 - (21/04/2020) - The Central Board of Direct Taxes (CBDT) responding to some observations being circulated on social media alleging that the Income Tax Department is pursuing recovery proceedings and using arm-twisting methods by adjusting outstanding demands of the start-ups, today stated that these observations ar...

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CBDT issues Refunds worth Rs 4250 crore issued in a week

Press Release ID: 1614744 - (15/04/2020) - Central Board of Direct taxes (CBDT) today said that it has already issued over 10.2 lakh refunds totalling to around Rs. 4,250 crore as on 14th April 2020. These refunds are over and above the 2.50 crore refunds already issued in FY 19-20 till 31st March 2020 totalling Rs 1.84 lakh crore....

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Recent Posts in "Income Tax Refund"

Income Tax Refund- Everyone wants it, not all get it!

Refund – Everyone wants it, not all get it!! Income tax refund! Sounds quite familiar, doesn’t it? Many of us would have received a refund from the income tax department in the past as well as many have claimed it but not received the same. So, let’s discuss when and how does one get a […]...

Read More
Posted Under: Income Tax |

Income Tax Refund and Right to Information Act (RTI)

If there is one area in the income-tax administration which has remained perennially incurable, it is the Refunds, we shows you an easy way to solve the problem. In a Press Release dated April 19, 2007, the Central Board of Direct Taxes stated: “It has been reported in some sections of the media that a large number of taxpayers are awai...

Read More
Posted Under: Income Tax |

HC: Interest payable on delayed Income Tax Refund Interest

CIT Vs Syndicate Bank (Karnataka High Court)

CIT Vs Syndicate Bank (Karnataka High Court) Conclusion: When an order of refund was issued, the same should include interest payable on the amount, which was refunded. If the refund did not include interest due payable on the amount refunded, the revenue would be liable to pay interest on the short fall. This did not […]...

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Set off of refunds against tax remaining payable – Section 245

Set off of refunds against tax remaining payable as per Section 245 of the Income Tax Act, 1961 Section 245 of the Act empowers the Income Tax authorities to adjust any previous year/s outstanding demand of tax liability with the refund amount due to the assessee. However, this power can be exercised only after issuing […]...

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Posted Under: Income Tax |

Delayed Payment of Interest on Delayed Refund is Part of Principal Amount & Eligible for Interest u/s 244A

PCIT Vs Solan District Truck Operators Transport Co-op. Society (Himachal Pradesh High Court)

The issue under consideration is whether the delayed payment of interest on delayed refund becomes part of the principal amount will be eligible for interest under Section 244A?...

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Suggestion /representation on 7 Important Direct Tax Issues

Following is the summary of Suggestion /representation on behalf of the taxpayers/professionals in connection with the Direct tax related matter. Detailed reasoning of same is provided in subsequent paragraphs....

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Posted Under: Income Tax |

ITAT explains section 244A provisions – Interest on Income Tax Refund

Maruti Suzuki India Ltd Vs CIT (Appeals) (ITAT Delhi)

Maruti Suzuki India Ltd Vs CIT (Appeals) (ITAT Delhi) The Honorable Delhi ITAT recently adjudicated an appeal filed in the case of Maruti Suzuki India Ltd vs Commissioner of Income Tax (Appeals)-IX (ITA No. 2553, 2641/Del/2013) wherein the case before the Tribunal was related to the provisions of section 244A of the Income Tax Act. Post ...

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Withholding of Income Tax refund mere due to issue of Scrutiny is not valid

Conner Institute of Health Care And Research Centre Pvt. Ltd. Vs ITO (Delhi High Court)

Conner Institute of Health Care And Research Centre Pvt. Ltd. Vs ITO (Delhi High Court) The exercise of withholding of refund under section 241A of the Act, pursuant to notice u/s 143(2) of the Act, without recording justifiable reasons, is not in consonance with the legislative intent and mandate of the aforesaid provision. The reasons [...

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1st April Onward CBDT issued refunds of over Rs. 88652 crore

As per tweet by CBDT on its official Handle-From 1st April onwards CBDT has, so far, issued refunds of over Rs. 88,652 crore to more than 24.64 lakh taxpayers from 1st April, 2020 onwards. Income tax refunds of Rs. 28,180 crore have been issued in 23,05,726 cases & corporate tax refunds of Rs. 60,472 crore […]...

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Posted Under: Income Tax |

Section 241A: Withholding of Income Tax Refund

Income tax is a duty levied by the Central Government on the incomes earned by the individuals or non-individual entities. Further, in some cases it so happens that the assessee pays the income tax which is greater than or above the actual income tax liability of that individual for any specific financial year. In the […]...

Read More
Posted Under: Income Tax |

Reasons of income tax refund delay & subsequent redressal

An Assessee is entitled to Income tax refund if he has paid more taxes by the way of Tax deducted at source or tax collected at source or self assessment tax or Advance tax as per the provisions of Section-237 of Income tax act, 1961. Income tax refund can only be claimed after filing of Income tax return within the time limit prescribed ...

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Posted Under: Income Tax |

Digital Signature – How to Register / Sign ITR & FAQ

If an individual does't have a Digital Signature, does this mean he/she cannot file the return online? Do I need a fresh digital signature, in case I already have one? How much does a DSC cost? How can a DSC be attached with the return while uploading ? The Web site accepts DSC in the .pfx format. Other formats like .cer are not being ac...

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Posted Under: Income Tax |

How to Request re-issue of Income tax Refund?

Income Tax Refund cheque issued by CPC Bangalore Returned undelivered or not been credited due to wrong account info, expired cheque etc? Now days Assessee who file their Income tax Return online gets their refund cheque issued by CPC Bangalore. Refunds are issued by two modes:-...

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Withholding of refund for non-completion of assessment is invalid

Cooner Institute of Health Care And Research Centre Pvt. Ltd. Vs. ITO (Delhi High Court)

Cooner Institute of Health Care And Research Centre Pvt. Ltd. Vs ITO (Delhi High Court) Delhi High Court Direction To Release Refund Withheld Without Valid Reasons And Based On Flawed Assumption only ground for withholding refund is that since case of the petitioner has been selected for scrutiny for AY 2018-19, under Section 143(2) of [&...

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Interest on Refund adjusted against demand allowable till date of adjustment

Tata Steel Limited Vs ACIT (ITAT Mumbai)

whether the assessee is entitled for interest u/s.244 of the Act from the date of payment of taxes till the date such taxes were actually adjusted against the demand of some other assessment year?...

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Interest on Income tax Refund

1. As per sec 244A (1) of Income tax act, where refund of any amount becomes due to the assessee under this Act, he shall be entitled to received simple interest there on calculated in the following manner namely :- a. Where the refund is paid out of TCS under sec 206C or paid by […]...

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Step to check Income Tax Refund Status & reasons for delay

A step-by-step guide to checking status and reasons for delay Steps to check Income tax refund status Check the status of your tax refund to get an idea about when you will get it if you are sure that you haven’t made any mistake in filing ITR form. With the help of 2 websites you […]...

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FAQ related to Central Processing Center (CPC)

Article deals with FAQ related to Non receipt of ITR-V, Intimation u/s 143(1), Rectification order U/s. 154 and how to request for reissue of them online. It further deals with CPC Email ID, Helpline Number Working Hours etc....

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How to file Online Income Tax Rectification application u/s 154

Article explains Procedure for Filing Online Request for Rectification of Mistake U/s. 154 of the Income Tax, Prerequisites for Filing Such Application, Common mistakes while filing Rectification, Important Notes before e-Filing Rectification, Tips on filling Income Tax Return to avoid mistakes....

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Income Tax software not allowing Full & proper interest

Problem in software issue in allowing Full and proper interest allowable u/s 244-A of Income TAx Act, 1961 while processing Income Tax returns for AY 2019-20...

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Extension of Time for processing of ITR with Refund claim for AY 2017-18

F. No.225/98/2020/ITA-II (10/07/2020)

CBDT Extends Time Limit for processing of Income Tax Return with Income Tax Refund Claims u/s 143(1) for AY 2017-18 in Non scrutiny cases till 31.10.2020....

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TDS wrongly deposited-Claim of refund- Delhi HC judgement

Clean Wind Power Kurnool Private Limited Vs DCIT (Delhi High Court)

Present writ petition has been filed seeking a direction to the respondents to remove technical glitches and enable the TRACES portal so that petitioner can file its refund application for the excess Tax Deduction at Source (TDS) deposited by it....

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CBDT prioritise Vivad Se Vishwas Scheme case of demand & Refund

CBDT  desires that all the work related to cleaning up of the tax demands and calculating the tax payable or refundable in respect of all eligible assesses under Vivad Se Vishwas Scheme is taken up on priority and completed by 31st August 2020. Also Read- CBDT directs all CIT(A) to dispose at least 80 appeals […]...

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Posted Under: Income Tax |

Release ₹ 833 crore Income Tax Refund to Vodafone in 2 Weeks

Vodafone Idea Limited Vs ACIT (Bombay High Court)

High Court states that, however, insofar as the net refundable amount of Rs. 833,04,88,000/- is concerned, in our view, the respondents already having invoked their powers under Section 245 of the Act which action has ended with passing of the order dated 28th May, 2020, the respondents cannot withheld the admitted refundable amount of Rs...

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Income Tax Refund of Rs. 62.36 crore issued during Covid days

NA (03/07/2020)

Income Tax Department has issued tax refunds at a speed of 76 cases per minute from 8th April to 30th June, 2020. During this period of just 56 weekdays, the Central Board of Direct taxes (CBDT) has issued refunds in more than 20.44 lakh cases amounting to more than Rs. 62,361 crore....

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Refund Under Provisions of Income Tax Act, 1961

Section 237 of the Income Tax Act, 1961 deals with refund of excess tax paid by the assessee. If any person or assessee satisfies the assessing officer that the amount of the tax paid by him or paid by any person on his behalf during any previous assessment year exceeds the amount with which he is properly chargeable under the act for tha...

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Posted Under: Income Tax |

Claim your Income Tax Refund for six years

You are required to file your income tax return in case your gross total income exceeds the amount of the basic exemption limit. You can file your return of income for claiming refund of taxes even if your income does not exceed the exemption limit due to TDS or payment of advance taxes . ...

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Interest on Income Tax Refund

Many times it may happen that the taxpayer has paid excess tax as against the tax required to be paid by him. In such a case he is granted refund of the excess tax paid by him. In this part you can gain knowledge about various provisions relating to claim of refund of excess tax paid by the taxpayer....

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Tax Refunds amounting to Rs. 26242 crore issued since 1st April 2020

Release ID: 1626051 (22/05/2020)

Central Board of Direct Taxes (CBDT) has issued tax refunds worth Rs. 26,242 crore to 16,84,298 assessees since 1st April, 2020 to 21st May, 2020. Income Tax refunds amounting to Rs. 14,632 crore have been issued to 15,81,906 assessees and corporate tax refunds amounting to Rs. 11,610 crore have been issued to 1,02,392 assessees during th...

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Section 234D- Interest on Excess Refund of Income Tax

Article discusses Interest under section 234D of Income TAx Act, 1961 on Excess refund granted to taxpayer which includes Manner of computation of interest U/s. 234D , Basic provisions related to Refund, Amount liable for interest and Adjustment under Section 234D(2). ...

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Check status -Income Tax Refund, Return Processing, Refund dispatched

Income Tax department has provided the facility to the Assessee / tax Payer to check status of Income Tax Return Filed online on its e-filing portal. In addition to this Assessee can also check status of Income Tax Refund of return filed by the Assessee (Manual and Online) and Assessee can also track online the status of Income Tax Refun...

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Posted Under: Income Tax |

SC directs income tax dept to refund Rs. 733 Crores to Vodafone

Supreme Court has directed the income tax department to refund an amount of Rs.733 Crores to Vodafone within four weeks A two-judge bench of the Supreme Court has directed the income tax department to refund an amount of Rs.733 Crores to Vodafone within four weeks subjected to any proceedings that the Revenue may deem appropriate [&hellip...

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Withholding of refund against demand payable for earlier years justified

Vodafone Idea Ltd Vs ACIT (Supreme Court of India)

Uptill AY 2016-17, if a scrutiny notice u/s 143(2) is issued, the return is not required to be processed u/s 143(1) for grant of refund to the assessee however, from AY 2017-18 & onwards, a different regime is prescribed by Parliament by inserting  section 241-A which required separate recording of satisfaction on part of AO that having ...

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Procedure for Refund of Excess TDS Deducted/ Paid

If a deductor has deposited excess amount of TDS , the procedure for getting refund was given in Board Circular 285 dated 21-1-1980. Now CBDT has issued new circular in this respect....

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Posted Under: Income Tax |

E-mails for facilitating faster refund cannot be misconstrued as harassment: CBDT

Release ID: 1616620 (21/04/2020)

The Central Board of Direct Taxes (CBDT) responding to some observations being circulated on social media alleging that the Income Tax Department is pursuing recovery proceedings and using arm-twisting methods by adjusting outstanding demands of the start-ups, today stated that these observations are completely unfounded and are total mis...

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CBDT issues I-T refunds worth Rs 5,204 Crore issued in last 10 days

As a relief to MSMEs, I-T refunds worth Rs 5,204 Crore issued in last 10 days: CBDT The Central Board of Direct Taxes (CBDT) today said that Income tax refunds to nearly 8.2 lakh small businesses (proprietors, firms, corporate and trusts) worth Rs 5,204 Crore have been issued since 8th April 2020. These income tax […]...

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Posted Under: Income Tax |

ITR selected under Risk Management Process for pending Tax Refunds

Income Tax Department under its reminder campaign, sent email to around 1.74 Lakhs Taxpayers on 14/04/2020 with the Subject line regarding “Claim of Refund in your Income Tax Return for AY <Assessment Year> – <PAN> “. The said email states that “Your Income Tax Return has been selected under risk management process...

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Posted Under: Income Tax |

CBDT issues Refunds worth Rs 4250 crore issued in a week

Press Release ID: 1614744 (15/04/2020)

Central Board of Direct taxes (CBDT) today said that it has already issued over 10.2 lakh refunds totalling to around Rs. 4,250 crore as on 14th April 2020. These refunds are over and above the 2.50 crore refunds already issued in FY 19-20 till 31st March 2020 totalling Rs 1.84 lakh crore....

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CIT to examine refund claims with due application of mind & issue the same

Ericsson India Pvt. Ltd. Vs ACIT (Delhi High Court)

Withholding of refund claims should be examined by the Principal Commissioner of Income Tax with due application of mind and the entire exercise should be completed within the period of six weeks and the case of failure of Officers should transmit the amount including the interest to assessee without awaiting any further orders....

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Immediate clearance of Pending GST, Custom & Income Tax refunds

(Release ID: 1612291 (08/04/2020)

IT Department to release all pending income tax refunds up to Rs 5 lakhs immediately ; Around 14 lakh taxpayers to benefit. All GST & CUSTOM refunds also to be released ; to provide benefit to around 1 lakh business entities including MSMEs...

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Government to issue pending Income Tax/GST/Customs Refunds

NA (08/04/2020)

In the context of the COVID-19 situation and with a view to provide immediate relief to the business entities and individuals, it has been decided to issue all the pending income-tax refunds up to Rs. 5 lakh, immediately. This would benefit around 14 lakh taxpayers....

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Whom should Assessee contact for Income Tax refund related queries

Whom do I contact for queries related to payment of refund which has been processed by ITD? My refund details are showing wrong in Form 26AS. How can I correct it? I have received refund in my bank A/C through ECS, but Form 26AS reflects mode of payment as ‘Paper’. How do I know whether my refund is in process at ITD in Form 26AS? The...

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Know Income Tax Refund Status

The taxpayer can track the status of its refund from the Departmental Website www.incometaxindia.gov.in / NSDL-TIN website www.tin-nsdl.com by clicking on 'Status of Tax Refunds'.'Refund status can be tracked by entering the PAN and Assessment Year for which refund is to be tracked. Status of the refund can also be tracked by contacting t...

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Re-issue of Income Tax Refund – FAQ

This Article deals with FAQ related to non receipt of Income tax Return due to Change in Address, Bank Details, Home Locked, Wrongs details of bank in ITR etc. In these cases assessee can request for re-issue of Income Tax Refund and procedure for the same is given below....

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Income Tax Refund- Know the Status & FAQ

In this Article we have discussed Mode of Refund, How to Know Status of Refund, What to in case of expired refund/ Return of Refund, non-receipt of Refund dispatch, Mistake on Refund Cheque, ECS Failure, Refund Paid but Taxpayer account not credited, Ajustment of Refund Against Demand and whom to contact in case help required. ...

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28 Reason why your Income Tax Refund Fails to reach you

In this Article we have discussed 28 Most Common Reason for Failure / Return or non-issuance of Income Tax Refund and Solutions for the same. Some of the common issues are Expired Cheque, Incorrect A/C No , House Locked, Party Shifted,Incorrect MICR code/unavailable etc....

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Know Income tax Refund failure Status

CPC Refund Failure Status - Use this query to find out if your Income Tax refund could not be issued due to missing/incorrect mandatory fields or if the refund was returned due to reasons such as address not found, etc. Please note that, if the query does not fetch any details, it implies that either the e-return has not been processed so...

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Rectification Request in case of e-filed I-T Return – FAQs

Article deals with FAQ related to Rectification of errors in case of return filed online. The article explains about how to file Rectification request, what if you get error in filing rectification u/s 154, What if demand been wrongly raised or refund been processed at lesser amount....

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Suo motu contempt proceeding against CIT / PCIT refund ‘Army Officer’ not granted within 30 days: HC

Col. Retd. Madan Gopal Singh Nagi Vs CIT (Madhya Pradesh High Court)

Respondent CIT/PCIT directed to refund the entire amount of income tax they have recovered, which was an exempted amount and which the petitioner Army Officer has paid in respect of his disability pension....

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How to get Old Income Tax Refund?

How to get old Income Tax Refund? Can I do this process online or I have to visit Income Tax Office? Can I file my ITR now to get the old Income Tax Refund? What is the procedure to file application for condonation of delay in Filing of Refund Claim?...

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Income Tax CPC Frauds – An eye opener for Honest Tax Payers…

You may be surprised to read the heading of this article and it will be very hard to believe for many of us. But it a big eye opener for all honest tax paying citizen, how CPC utilize our hard ended money for paying planned fraudulent Refunds....

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How to Request for Income Tax Refund Re-issue

As we all are aware that, currently the refund shall be issued to the pre-validated bank account only. There can be instances such as incorrect bank account details, incorrect address, IFSC Code and so on due to which the CPC has rejected the refund of the taxpayer and communicated through email. In such cases of […]...

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Withholding Tax Refund of Assessee by AO ( Not a discretionary right)

Recent judgement of Delhi High court in the case of Maple Logistic (P) Ltd. Has again highlighted the matter of withholding the refund of assessee without following spirit of law. When a case of assessee is selected for scrutiny, refund is withheld. It is against the law and court has taken very adverse view on […]...

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Prevalidation of Bank Account| Mandatory for Income Tax Refund Credit

A reminder to all the Tax return preparers and the assessees filling your ITR of a very imp Income tax related update brought about for ITR Filing for FY 18-19 onwards. From March 1, 2019, the I-T department has started issuing income tax refunds only through e-mode. The new rule means that the earlier practice […]...

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HC Explains Law for Withholding of IT Refund under Section 241A

Maple Logistics Private Limited & Anr Vs Pr. CCIT (Delhi High Court)

Maple Logistics Private Limited & Anr Vs Pr. CCIT (Delhi High Court) Assessing Officer shall, firstly, with reasons, make a prima facie assessment of the probability that additions would be made in the Scrutiny Assessment Proceedings, secondly; he shall make an assessment of the quantum of additions, if any, that may be made to the [&...

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CA and others convicted for Cheating Income Tax Department

CBI Vs Devendra Chaturvedi (Special Court for CBI At Greater Bombay)

CBI Vs. Devendra Chaturvedi (Special Court for CBI at Greater Bombay) In nutshell, it is the allegation against accused that they conspired to cheat the Income Tax Department and in collusion with each other during the relevant period accused No.1 prepared income tax returns with the assistance of accused No.2 in the name of accused [&hel...

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Form-29B not significant for processing of Income Tax Return: HC

HHA Tank Terminal (P) Ltd. Vs ACIT (Kerala High Court)

We have already found that Form-29B is not at all significant for processing of the return as is seen from the facts of the case which indicate that such processing having been done far earlier to the filing of such statement...

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Interest payable on refund of Tax which was Paid pursuant to a special order of AO

Universal Cables Ltd Vs CIT (Supreme Court)

Universal Cables Ltd Vs CIT (Supreme Court) A ‘tax refund’ is a refund of taxes when the tax liability is less than the tax paid. As per the old section an assessee was entitled for payment of interest on the amount of taxes refunded pursuant to an order passed under the Act, including the order […]...

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Delayed payment of interest on refund will be eligible for interest U/S 244A 

PCIT Vs Ambuja Darla Kashlog Mangoo Transport Co-operative Society (Himachal Pradesh HC)

In view of the ratio laid down by the Hon’ble Supreme Court in the judgment supra, the interest on the delayed refund becomes part of the principle amount and the delayed interest includes the interest for not refunding the principle amount...

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Auto-generated communication/Order under section 241A are not valid: HC

Vodafone Idea Limited Vs DCIT (Bombay High Court)

Auto-generated communication dated 24.3.2019 which contained the note of withholding of the refund in terms of Section 241A of the Act, does not satisfy any of the legal tests for passing said order. Firstly, it is not passed by the Assessing Officer who is competent to do so. Secondly, it is not even an order, it is a mere auto-generate...

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Income Tax Refund – Mystery

With the end of ITR Filing season, now the assessee has starts receiving their claimed refund from Income Tax Department. Individuals who have filed their ITR’s before 31st August, 2019 has almost received their refunds. Because, this time, to lower the interest burden on government treasury, Income Tax department has processed refund c...

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Posted Under: Income Tax |

Re-Issuance of Income Tax Refund – How to Submit Request Online

Now, the ITR Filing season is almost over and assesses are receiving Intimation U/s 143 (1) of Income Tax Act, 1961 related to their filed ITR. This time focus of the Income Tax Department is on the issuance of Income Tax Refund as soon as possible. And assesses who have claimed a refund in their […]...

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Term “recovery” includes adjustment thereby reducing demand: Section 220/245

Volvo Group India Pvt. Ltd Vs DCIT (ITAT Bangalore)

i) The term recovery is comprehensive and includes adjustment thereby reducing the demand; (ii) It will be specious & illogical for the Revenue to contend that if an issue is decided in favour of the assessee giving rise to a refund in an earlier year, that refund can be adjusted u/s 245, on account of the demand on the same issue in a su...

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I-T Department to Refund Over Rs. 43 Cr withheld against demand of 49 Lakhs

Vodafone Idea Limited Vs DCIT (Bombay High Court)

Vodafone Idea Limited Vs DCIT (Bombay High Court) 1. The petitioner has prayed for directions to the Income Tax Authorities for releasing the refund of Rs. 43.25 Crores (rounded off) with applicable interest pertaining to the assessment years 2007-08 to 2013-2014. Having heard the learned Counsel for the parties and having perused the doc...

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Functionality to process returns having Income Tax refund claims

ITBA-Processing Instruction No. 9 (12/09/2019)

Functionality for processing of returns having refund claims which were not processed within the time allowed u/s 143(1) due to some technical or other reasons- reg....

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Processing of I.T. returns with refund beyond prescribed time limits in non-scrutiny cases

F. No.225/194/2019/ITA-II (05/08/2019)

(a) returns filed for any assessment year prior to assessment year 2017-18, which were under scrutiny and were not processed in view of provisions of sub-section (1D) of section 143 of the Act; (b) returns remain unprocessed, where either demand is shown as payable in the return or is likely to arise after processing it; (c) returns...

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Income Tax Refund cannot be withheld for error in Computer System

M/s. Vodafone Idea Limited Vs DCIT (TDS) & Ors. (Bombay High Court)

High Court held that Income Tax Refund cannot be withheld by Income Tax Department for error in Computer System. It held that the computer system cannot override the factual aspects and if Income Tax refund is payable than whether the computer systems accepts or not, is of no consequence....

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Rationalisation of provisions relating to claim of Income tax refund

The existing provisions of section 239 of the Act provide inter alia that every claim of refund under Chapter XIX of the Act shall be made in the prescribed form and verified in the prescribed manner. In order to simplify the procedure for claim of refund, it is proposed to amend the said section so […]...

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Posted Under: Income Tax |

Pre-Budget Memorandum 2019- A Small Wish List From New Finance Minister

Union Budget 2019 – New Finance Minister Smt. Nirmala Sitharaman’s first budget after the huge and unprecedented electoral win of Sh. Narendra Modi Government has the backing of a mammoth public mandate and as such is expected to be a reform oriented budget and not a populist one. However, along with the bold and reform […]...

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Section 244A(1) Interest on refund of excess self-assessment tax

DCIT Vs Savita Oil Technologies Ltd. (ITAT Mumbai)

DCIT Vs Savita Oil Technologies Ltd. (ITAT Mumbai) A careful look at sub-section (1) of section 244A would reveal that it has three parts. The first part deals with the entitlement of a person to interest whenever he is due to get a refund from the Department. The second part relates to the method of […]...

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What You Need To Know About Income Tax E-Refund

Many of us would have received a refund from the income tax department in the past. A tax refund or tax rebate is a refund furnished to the taxpayer when the tax liability is less than the taxes paid. Taxpayers can avail a tax refund on their income tax if the tax they owe is […]...

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Modified Approval process for issue of paper Income Tax refunds and Manual Order Upload functionality

F. No. System/ITBA/Instruction/Assessment/177/16-17/ (18/09/2019)

Kind reference is invited to ITBA assessment instruction no 9 dated 07.05.2018 in which the process of uploading of manually passed order in ITBA system was described. Vide above instruction it was explained that for doing any work in system, the previous orders should have been passed in system....

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Section 244A of Income Tax Act,1961- Details of Changes Since 1.4.1989

Whenever an assessee gets his refund from the department which is late then he is entitled for the interest u/s 244A of the Income Tax Act , 1961. There remains a confusion of the year and calulation of the interest for the period. Period is very important . From which date and for which period […]...

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Interest on I-T Refund cannot be denied for Mistake committed by assessee

Pr. CIT Vs State Bank of India (Bombay High Court)

Pr. CIT Vs State Bank of India (Bombay High Court) The Assessing Officer has been given no discretion in the matter of granting interest. The amount of interest has to be paid to an assessee in terms of Section 244A of the Act. The only limitation provided therein under Section 244A of the Act is […]...

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Omission by auditor Reasonable Cause for delay in claiming Refund

G.V. Infosutions Pvt. Ltd Vs DCIT (Delhi High Court)

G.V. Infosutions Pvt. Ltd Vs DCIT (Delhi High Court) The rejection of the petitioner’s application under Section 119(2)(b) is only on the ground that according to the Chief Commissioner’s opinion the plea of omission by the auditor was not substantiated. This court has difficulty to understand what more plea or proof any assessee coul...

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Link your PAN with your Bank Account- No Refund if A/c not linked

Link your PAN with your Bank Account… Get your refund directly, swiftly and securely in your bank account Income Tax Department will Issue only e-refunds from 01.03.2019 Refunds will be given only to bank accounts (savings/current/cash/OD) which are linked with PAN. To check if your bank account is linked with your PAN, login to e...

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HC Rejects Vodafone claim for Income Tax Refund of over Rs 4,759 Cr

Vodafone Mobile Services Ltd Vs Asst. Commissioner Of Income–Tax & Anr. (Delhi High Court)

Refund claim of Vodafone’s worth Rs. 4759.74 Crores was rightly rejected as Revenue had the right to adjust the substantial outstanding demands against the refunds that arose but had not yet been determined due to ongoing scrutiny proceedings....

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Income Tax Refund and Return filed during last 3 Financial Years

The level of income-tax compliance has continuously increased over the last three Financial Years, which is reflected in the number of Income-Tax Returns filed over this period, as given hereunder: – S.No. Financial Year Total Number of Income Tax Returns filed Percentage increase over previous Financial Year (a) (b) (c) (d) 1 2015-...

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Functionality of Withholding of Income Tax Refund u/s 241A- Reg.

ITBA-ITR Processing Instruction No. 5 (14/12/2018)

ITBA-ITR Processing Instruction No. 5 DIRECTORATE OF INCOME TAX (SYSTEM) ARA Center, Ground Floor, E-2, Jhandewalan Extension, New Delhi – 110055 F.No. System/ITBA/Instruction/ITR Processing/112/16-17/ Dated: 14.12.2018 To All Principal Chief Commissioners of Income-tax/CCsIT All Principal Director Generals of Income Tax /DGsIT All Prin...

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CBDT Directive on Refund Fraud & Confidential Data Leakage

F. No. DGIT (Vig.)/HQ/DE0/2018-19/5170 (27/11/2018)

Large-scale outsourcing of data entry functions in the Income Tax Department poses a risk of refund frauds and leakage of confidential data. It has been noticed that quite often the outsourced data entry operators have access to the RSA Tokens issued to the officers and are also aware of the passwords. ...

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Procedure for Income Tax refund not issued due to technical reasons

ITBA-Processing Instruction No 4 (08/10/2018)

Due to some reasons, the valid returns filed by tax payers, were not processed within time prescribed under section 143(1) of Act. Due to which, refund due to assessee could not be issued....

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Interest on income tax refund not eligible for deduction U/s. 80IE

M/s. OMIL JSC (JV) Kameng Kota. Vs Dy. CIT (ITAT Jaipur)

M/s. OMIL JSC (JV) Kameng Kota. Vs Dy. CIT (ITAT Jaipur) The limited issue under consideration relates to whether interest on income tax refund is eligible for deduction under section 80IE of the Act. The contention of the assessee is that it has only one business undertaking and the only business of the undertaking is […]...

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Addition for interest U/s. 244A cannot be made in absence of intimation regarding grant of interest

Denis Chem Lab Ltd. Vs ACIT (ITAT Ahmedabad)

Since assessee had not been served with any intimation or any other communication regarding the grant of interest under section 244A for assessment year 2009-10 and refund in question had been directly credited by department to bank account, the amount of interest had been provided in financial year 2015-16 on receiving of information fro...

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How to Get Your Pending Income Tax Refund: Tax Ombudsman

Delays in income tax refunds, even after the stipulated number of months, are faced by many tax payers. Running from pillar to post at the income tax office, having to deal with impolite income tax officials become a part of the ordeal. ...

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Claim Interest on Income Tax Refund for delay

DELAYS AREN'T DENIALS -Before getting into the actual process, it is important to know some of the reasons that may have caused the delay. If your bank account details or your PAN number is entered incorrectly in the form or you end up filing your tax in the wrong ward/circle, then the chances for delay are high.Tax authorities have espe...

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Posted Under: Income Tax |

Income tax Refund Re-issue for change in Address & Bank Details

For the change in Address and all address related issues. Taxpayer has to Login to http://incometaxindiaefiling.gov.in. a. Login to the above website, where in the login id will be the PAN Number and Password is which is created when logging in for the first time. b. Now Go to ‘My Account’. In the drop down click on ‘Service Request...

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Income Tax Refund stuck – Steps to take & Reasons for Delay

Unfortunately in our country, many honest tax-payers have pending income tax refunds. Whether it's the Income Tax (I-T) department's lethargy or the growing number of tax payers, delayed refunds remain high on the list of complaints against the department. One of the challenges for any tax payer is getting a refund, because it is a length...

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7 Advantage of Online Income Tax Payment

1. You can pay taxes from any location at any time through your net-banking account.2. Instant transfer of funds from your account. 3. What you write on the e-challan will be directly sent to Income Tax Department. Banks will not do any data entry...

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CBDT disposes More than 20,000 Income Tax refund cases

The Income Tax Department observed a dedicated fortnight from 1st to 15th June, 2018 to expeditiously clear pending matters of appeal effect and rectification. More than 20,000 such matters were disposed of and refunds were issued to the taxpayers, wherever due. Seeing the success of this initiative, the special drive was extended in cert...

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Assessee entitled to interest on refund arising on excess payment of self-assessment tax U/s. 244A

CIT Vs. P.N. Writer (Bombay High Court)

CIT Vs. P.N. Writer (Bombay High Court) Assessee was entitled to the interest on refund arising on excess payment of self-assessment tax under section 244A, despite the revenue’s contention that assessee had failed to produce any material which would demonstrate how this tax was worked out, and particularly during the course of self-ass...

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Advisory on Phishing, Fraudulent Refund E-mail Scams & Fake Income Tax Web Sites

Taxpayers are requested not to respond to any email or any type of communication sent to them requesting them to furnish their personal particulars such as Bank account details, passwords, OTP etc. purported to be from Income Tax Department. The Income Tax Department does not seek such information through email or any other mode of [&hell...

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Posted Under: Income Tax |

Respite from deadline of March 31, 2018 to claim IT refund for FY 2015-16 & 2016-17

CBDT Circular No. 9/2015-Income Tax, dated 09th June 2015 provides assessee a right to apply for condonation of delay in claiming the refund or carry forward the losses. So, in case, a assessee has missed the deadline of March 31, 2018 to file the return for FY 2015-16 and FY 2016-17, he can claim the refund by following the guidelines as...

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Interest U/s. 244A on refund of excess SA tax payable from self-assessment tax payment date

Asst. CIT Vs. Bharat Petroleum Corporation Ltd. & Vice-Versa (ITAT Mumbai)

Refund under section 244A(1)(b) of the Act on self assessment tax is to be paid from the date of payment of self assessment tax till the date of grant of refund....

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Refundable Tax System

ABSTRACT In the modern world the indirect taxes take an essential part of Governments’ Tax Revenue. Various countries are following various types of Indirect Taxations like Sales Tax, Value Added Tax and Goods and Services Tax. In this situation, I am introducing a new Indirect Taxation concept which I have named as “Refundable Tax Sy...

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Posted Under: Income Tax |

Beware of Fake Income Tax Refund emails

For all of those who have Income Tax return and have received an e-mail stating that there has been an error in calculating your tax and a refund has to be issued, please ignore it....

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Non-residents allowed to claim Income Tax Refund in Foreign Bank A/c

Income-tax Return Forms for the Assessment Year 2017-18 were notified on 30th March, 2017. A number of representations were received from the non-residents that they are facing difficulties in getting refund as they do not have bank account in India and there is no column in the notified form of return of income for reporting details of f...

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In absence of communication of interest on IT Refund no penalty for not offering the same for tax

M/s Subhash Chander Sewa Vs Income Tax Officer (ITAT Amritsar)

Admittedly there is a mistake committed by the assessee in not adding interest on the refund to his sources of income. There is no disputing the fact that the tax payer duly and diligently must necessarily in its return of income disclose all avenues of his income. The assessee in its defence has consistently maintained […]...

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Interest on Refund of Interest waived by Income Tax is not Interest on Interest

Preeti N Aggarwala Vs Chief Commissioner of Income Tax & Anr. (Delhi High Court)

In a recent ruling, the Delhi High Court held that interest can be allowed on Refund of interest Waived by the Department under section 220(2A) of the Income Tax Act. The bench was hearing a bunch of writ petitions wherein the petitioners raised a question that whether the expression ‘in any other case’ occurring in Section 244A (1) (...

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Expeditious issue of Refunds is a High Priority for CBDT

Expeditious issue of Refunds is a High Priority for the Central Board of Direct Taxes (CBDT); Over 4.19 crore Income Tax Returns (ITRs) processed and over 1.62 crore refunds issued during the Current Financial Year up to 10th February, 2017....

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Posted Under: Income Tax |

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