The Ministry of Finance has revealed that as of the final deadline on July 31, more than 7.28 crore income tax returns (ITRs) were filed for the financial year 2023-24. This represents a significant increase of 7.5% compared to the 6.77 crore returns filed for the previous financial year, 2022-23.
Taxpayers who have yet to verify their ITRs are reminded to do so within 30 days of filing. For those who missed the July 31 deadline, there’s still a window of opportunity. According to tax and investment expert Balwant Jain, it is possible to claim a refund for up to six assessment years, as per circular no. 9/2015. However, this requires fulfilling specific conditions, including applying for condonation of delay and obtaining approval. Once approved, taxpayers can then file their ITR online for the past six years, referencing the order that granted the condonation.
Jain, in an interview with Livemint, shed light on various aspects of income tax refunds under the Income Tax Act. He explained that not all taxpayers are eligible for a tax refund, as eligibility depends on whether the taxes paid exceed the taxpayer’s tax liability. This encompasses taxes deducted at source (TDS), taxes collected at source (TCS), as well as advance tax and self-assessment tax.
The processing of refunds typically takes 4 to 5 weeks from the date of verification after the taxpayer has e-verified their return. Jain emphasized the critical importance of ensuring accurate bank account details when filing the ITR, as refunds are directly credited to the taxpayer’s bank account.
Jain also outlined situations where refunds might be withheld. The income tax department reserves the right to offset refunds against any outstanding demands from previous years. While they are required to notify taxpayers before making such adjustments, this doesn’t always happen. In case of an incorrectly adjusted refund, taxpayers can file a grievance on the income tax website by logging into their account.
It is crucial to remember that while the department can adjust refunds for past demands, taxpayers cannot utilize refunds from previous years to cover taxes owed for subsequent years.
Overall, taxpayers should be mindful of their refund eligibility, the process for claiming refunds, and the potential for refunds to be adjusted against past dues. Ensuring proper verification and promptly addressing any discrepancies can facilitate efficient receipt of refunds.
