ITR Refund: Want to claim money from Income Tax department? Check terms and conditions

Income Tax Refund: An earning person is required to file the ITR or income tax return if his or her gross income exceeds the amount of the basic exemption limit. The earning individual can file his or her ITR for claiming an income tax refund even if his or her income does not exceed the exemption limit due to TDS or advance tax payment. As per the tax and investment experts, an earning person can also file ITR for claiming the income tax refund in case his or her actual tax liability is lesser than the aggregate of the TDS and taxes paid like advance tax or self-assessment tax. Normally, one can claim an income tax refund for one year but in case one has failed to claim a refund, he or she can give an application to the income tax commissioner and after receiving the approval, one can claim a refund for last six years subject to some terms and conditions.

Elaborating upon how an earning individual can claim income tax refund for last six years, Balwant Jain,, a Mumbai-based tax and investment expert said, "Under Section 119, a taxpayer can make a request to condone the delay in filing of return within six years from the end of the assessment year in respect of which the return is to be filed. So effectively in case of a claim for an income tax refund, you get an extension of five years only as presently also you can file your income tax return for a refund one year after the end of the assessment year."

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On who can condone the delay Balwant Jain said, "This circular provides for different authorities who can condone the delay based on the amount invoiced. Any application to condone the delay for claim amount of Rs 50 lac or more has to be made to CBDT (Central Board of Direct Taxes) only. In case the amount of claim is between Rs 10 lac and 50 lac the application will have to be made to the Chief Commissioner of income tax or Principal Chief Commissioner of Income-tax. However, in case the amount involved is less than 10 lacs, the same can be entertained by either Principal Commissioner of income tax or Commissioner of Income Tax." Jain said that the limits specified are same whether your application is for an income tax refund or for carrying forward and set off of losses. It may also be noted the above limits apply to each financial year separately and not for the aggregate of the claim for all the years taken together. Before accepting or rejecting the application these authorities are supposed to verify that the claim is correct and genuine. It may be noted that the assessing officer which will eventually process your income tax return can make scrutiny of your claims before granting you refund or allowing you to carry forward the loss.

On condition for making the income tax refund Jitendra Solanki, a SEBI registered tax and income tax expert said, "The income in respect of which the refund is being claimed should not be includible in the income of any other persons. The claim for refund should have arisen due to TDS, of payment of advance tax or self-assessment tax."

Whether there is any interest in the fund an income taxpayer claim for refund Balwant Jain said, "Generally you are entitled to get an interest on the amount of refund due to you in case you have filed your return of income within one year from end of the financial years but in case you avail this facility of condonation of delay under this instruction you will not be entitled to any interest on the amount of refund due to you."