The last date to file your Income Tax Return (ITR) is July 31, 2023. If the tax amount paid exceeds the taxable income, you will be eligible for a refund. It is important to submit your ITR before the government to disclose income, liabilities and investments.
“While filing your Income Tax Returns, it is important to maximize your tax refund by taking advantage of all available opportunities. Remember, your Form 16 is not the only source of potential savings”, Amit Gupta, managing director, SAG Infotech, told Hindustan Times.
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Here are the steps you must follow to ensure maximum refunds from your income tax return filing.
1. Submit your ITR on time: It is absolutely necessary to file your income tax returns before deadline. By doing this, you will avoid penalties and get maximum refunds.
2. Choose the correct tax regime: Union finance minister Nirmala Sitharaman during her budget speech had announced a new income tax regime. The minister announced that the taxpayers will be able to select the regime under which want to file their ITR. It is important for you to select the correct regime which will suit your needs.
3. Verify your return: It is important to verify the income tax return within 30 days of filing. If the return is not verified, it will be treated as invalid and the taxpayer will have to file a fresh ITR if the deadline has not ended. If the deadline has ended, the taxpayer will not be able to file return for that financial year. “Verify your returns promptly to ensure a smooth processing of your refund”, Gupta said.
4. Claim deductions: Public Provident Fund (PPF), National Savings Certificate (NSC), National Pension Scheme (NPS), life and medical insurance premiums and home loan interests are eligible for standard deductions. You should claim it for maximum refunds. “Identify all eligible deductions and exemptions beyond those reflected in Form 16, and reconcile your data to avoid any discrepancies”, Amit Gupta added.
5. Validate bank account: You must validate your bank account and ensure it is correctly verified on the income tax filing e-portal. The I-T department credits the refund to the bank account validated on their portal.
“Validate your bank account to ensure seamless receipt of your tax refund. By adopting these strategies, you can make the most of your income tax refund and effectively manage your finances”, the SAG Infotech MD added.