Tax Deducted at Sources (TDS) is the tax, employer is liable to deduct TDS on employee salary based on tax savings declared by an employee at beginning of the financial year.
Beginning of the financial year all taxable employees declared their savings based on their declarations employer will deduct TDS from their salaries.
Last quarter of the financial year, employer (Company) will collect proof of actual savings made by all employees, here difference came out between savings declared during the financial year beginning and actual savings made. While filing of Income Tax return the system will show either tax payable or refundable.
Total tax payable by an X employee for the FY 2016-17 is Rs.60,000
Tax deducted by the employer (Company) is Rs.74,000
Eligible for Tax refund is Rs.14,000, because employer has deducted excess tax amount.
1.Employer will issue Form 16 to their employees after completion of the financial year
2.After receiving of form 16 from the employer then the employee has to file ITR 1 before the due date. Based on actual savings made and confirmed by the employee during ITR1 filing, the system will show automatically either TDS refundable or tax payable.
3.It will take three to six months to receive refund from the Income Tax department.
As per the Income Tax act under section 200A, if the Income Tax department delay in case of paying refund then assessee will get interest on receivable refund amount from the IT department and interest rate on TDS refund is 6% p.a.
How to Know Income Tax Refund Status: Department will send you acknowledgement email to your register email address indicating that refund payment process was initiated.
Also, you can check refund status with your PAN number through http://incometaxindiaefiling.gov.in and you can call CPC Bangalore office to know the status of your refund.
Copy Right © 2021 waytosimple.com All Rights Reserved.