income tax return
After filing Income Tax Return (ITR), every taxpayer waits for the refund. Usually, the Income Tax Department issues the refund within 4 to 5 weeks of completion of e-verification of the return. But many times it happens that the amount of refund received in the bank account is less than that shown in the ITR. In such a situation, a question arises in the minds of people as to why the refund amount has reduced.
According to experts, the biggest reason for this is that while processing the return, the Income Tax Department re-matches all the information and decides the final refund on the same basis.
Refund may be less due to these reasons
While processing the return, the department matches the information given in your ITR with Form 26AS, AIS, TIS, TDS records and other available data. If any difference is found, the refund may be less.
The main reasons for getting less refund include non-disclosure of income like bank interest or capital gains, wrong tax exemption claimed, irregularities in tax payment, wrong information about advance tax or self-assessment tax and outstanding tax of previous years. If the department makes any change, it also informs about it by issuing a notice under section 143(1).
Old tax dues also have an impact
If a taxpayer has tax outstanding for previous assessment years, the Income Tax Department can adjust that amount from the current refund. However, before doing so, the department informs the taxpayers through the e-filing portal and they also get a chance to present their views.
Refund may also be reduced if ITR is filed late
If you do not file ITR on time or do not deposit advance tax on time, interest can be charged under Section 234A, 234B and 234C of the Income Tax Act. This interest gets added to your total tax liability, which reduces the refund you receive.
Keep these things in mind to get full refund
Experts say that before filing ITR, match Form 26AS, AIS and TIS thoroughly. Enter all sources of income, tax payment and tax exemption information correctly. Select the correct ITR form, pre-validate the bank account and complete the e-verification on time. By taking these small precautions, the chances of deduction in refund are significantly reduced and the refund can also be received quickly.
