income tax return
ITR 2026: The season for filing Income Tax Return (ITR) has arrived. In such a situation, the biggest concern of every taxpayer is how to increase his tax refund. Actually, increasing the refund is not limited to just scrutinizing the investment documents at the last moment. The real key lies in the fact that your ITR is giving accurate details of your actual income, correct investment plan and tax already paid.
Many times, due to lack of information, your deducted TDS or advance tax remains in the government treasury. When the tax paid by you in the entire financial year exceeds your actual liability, the Income Tax Department returns that excess amount to you in the form of a refund. This refund can also be easily tracked on the e-filing portal. Tax experts also advise that even a small mistake can delay your refund or lead to a notice from the department. In such a situation, let us understand the ways by which you can maximize your refund.
Choosing the right tax regime will do wonders
The most important step before filing returns is to compare between the old and new tax regime (Old vs New Regime). It is not at all necessary that the system which is good for your colleague is also beneficial for you. You have to understand the mathematics of your tax liability in both the options. Choose the system in which your tax is the least. If more TDS has been deducted from your salary during the year, then you can easily get back your stuck money by choosing the right tax regime.
Great opportunities to save tax are hidden in the old system
If your calculations point towards the old tax regime, you have several options to claim the deduction. Under Section 80C, direct exemption of up to Rs 1.5 lakh can be availed by investing in PPF, EPF, ELSS, life insurance premium or 5-year tax-saving FD. Apart from this, by paying health insurance premium under Section 80D, additional benefit ranging from Rs 25,000 to Rs 50,000 can be availed depending on the age. Salaried employees can claim House Rent Allowance (HRA) with prescribed conditions. Under Section 24(b), a huge relief of up to Rs 2 lakh can be availed on home loan interest payment.
NPS investment will give extra power of Rs 50 thousand
If you have completed the limit of Rs 1.5 lakh under Section 80C, then National Pension System (NPS) can prove to be a great option for you. You can claim an additional tax deduction of Rs 50,000 by investing in NPS under Section 80CCD(1B). The best part is that the tax benefit available on employer’s contribution under section 80CCD(2) is available in both the old and new tax regimes. Through this, tax exemption can be claimed on contributions up to 10 percent of the salary in the old regime and up to 14 percent in the new regime.
Pay attention to these important steps with standard deduction
Every salaried taxpayer gets the benefit of ‘Standard Deduction’ on his taxable income without having to provide any investment proof. In the old system this deduction was Rs 50,000, whereas in the new tax system it has been increased to Rs 75,000. Apart from this, family pension recipients get a rebate of up to Rs 15,000 in the old regime and Rs 25,000 in the new regime under Section 57(iia). If the income remains within the prescribed limit, the rebate under Section 87A can reduce your tax liability to zero completely.
To get the refund credited to your account quickly and without any hassle, always remember some basic things. Choose the right ITR form as per your source of income. Make sure to match the TDS details already filled in the return with your Form 16 or 16A so that there is no discrepancy. Fill the bank account details correctly as the refund will be credited directly to your active account. Most importantly, complete your e-verification immediately after submitting ITR. The department starts processing your return only after e-verification, so any delay in this may delay your refund.
Also read- Do income tax returns have to be filed even on income less than Rs 4 lakh, what are the rules?
