Delay in tax refunds is a malady more widespread than the common cold. For many taxpayers, it is an endless wait for the government to return the excess tax that has been deducted. Nearly 57% of the respondents in our survey said they had faced this problem.
The excess tax is like an interest-free loan to the government because you are entitled to the interest only after you file your return. “The government pays only 6% interest but charges 12% for late payment. With proper tax planning, a taxpayer should not have any refund at all,” says Sudhir Kaushik, co-founder and CFO of Taxspanner.com.
Almost 15% of Taxspanner customers got tax refunds last year. It’s easy to accuse tax officials, but in many cases, the delay in refunds is due to discrepancies in the tax forms. Taxspanner scrutinized the returns of its customers and identified the most common reasons for the refund delay. Make sure you don’t commit these errors.
1) Mismatch in TDS data If the TDS details in your form do not match the data with the Income Tax Department, expect your refund to be put on the backburner. Verify the TDS details online before submitting the form.
2) Wrong address Though direct credit of refunds has removed this problem to a large extent, there are still some taxpayers who give wrong addresses and then wait for refunds.
3) Missing bank account details You are supposed to give your bank account number and its MICR code for direct credit of refunds. If there is an error, your refund gets stuck.
4) Late submission of ITR V The return is not filed until the ITR V reaches the CPC in Bangalore. Don’t expect any refund if the ITR V has not been filed.
5) Large number of TDS entries If there are lots of TDS entries (some taxpayers can have up to 70-80 entries), your assessment may take a little longer. Obviously, the refund also gets delayed.
Courtesy: http://economictimes.indiatimes.com/
1) Mismatch in TDS data If the TDS details in your form do not match the data with the Income Tax Department, expect your refund to be put on the backburner. Verify the TDS details online before submitting the form.
2) Wrong address Though direct credit of refunds has removed this problem to a large extent, there are still some taxpayers who give wrong addresses and then wait for refunds.
3) Missing bank account details You are supposed to give your bank account number and its MICR code for direct credit of refunds. If there is an error, your refund gets stuck.
4) Late submission of ITR V The return is not filed until the ITR V reaches the CPC in Bangalore. Don’t expect any refund if the ITR V has not been filed.
5) Large number of TDS entries If there are lots of TDS entries (some taxpayers can have up to 70-80 entries), your assessment may take a little longer. Obviously, the refund also gets delayed.
Courtesy: http://economictimes.indiatimes.com/
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