The excess paid, credited Income tax will be refunded to the tax payer by the Income Tax Department. The refund arises when:
- Advance Tax: Excess Advance Tax paid by the tax payer voluntarily.
- TDS: The deductor deducts the tax when he pays the consideration to the Tax payer.
- TCS: When the deductor collects Tax from the tax payer while collecting consideration amount from the tax payer.
Conditions for claiming the Refund:
- Return of Income: File Return of Income within two years from the end of Financial Year to which the Income relates.
- Taxes paid: The tax payer pays the taxes with correct PAN, BSR code, etc.
- Taxes Deducted: The deductor deducts the tax component while paying the amounts to the tax payer, pays the Tax with the Bank, files TDS return disclosing the correct PAN of the tax payer, The amounts tallies with the Department Form 26AS.
- TCS: The Tax collector collects the specified percentage as Tax along with the consideration from the Tax payer, pays the Tax with the Bank, files TDS return disclosing the correct PAN of the tax payer, The amounts tallies with the Department Form 26AS
- Process : The Income Tax department will process the Return of Income filed for issuing the Income Tax Refund, after verifying the tax payments with the Bank records, TDS/TCS returns filed.
