By the time the taxpayer realizes that he has made a mistake in filing the ITR and before he can correct it, the Income Tax Department processes the ITR and sends the refund. In such a situation, the taxpayer does not get a chance to correct his mistake.
In the last few years, the Income Tax Department has greatly accelerated its process of giving refunds. Now people are able to file tax returns (ITR Filing) much more easily than before. Not only this, they are also getting refund within a few days. However, this agility of the Income Tax Department can also become a cause of trouble for some people. This is because before the taxpayer realizes that he has made a mistake in filing ITR and he is able to correct it, the Income Tax Department processes the ITR and sends the refund. In such a situation, the taxpayer does not get a chance to correct his mistake.
More refund comes into the account of taxpayers
In such a situation, what happens is that people get more money in their account than the actual refund. This happens because people take some time to correct the mistake in their ITR, while the Income Tax Department has started working so fast that it processes the refund even before the mistake is corrected. If this happens to you, then do not make the mistake of not returning the extra refund amount, otherwise you may get a notice from the Income Tax Department.
What to do when you receive the notice?
There are many people who have not received a notice from the Income Tax Department despite getting additional refund. In such a situation, if you think that you will not get a notice, then do not make such a mistake at all. As soon as the additional refund comes, you should file a revised ITR as soon as possible and return the additional refund back to the Income Tax Department. If in the meantime you get a notice from the tax department, then you can give your explanation and show the revised ITR.
There should be no delay in filing the revised ITR, because if the tax officer issues a notice before that, then some penalty can also be imposed on you. The tax officer of the Income Tax Department can issue you a notice under section 143 (3), 147 or 144. You will also have to pay interest on the additional tax refund, so the sooner you pay back the money, the better it will be.
Before filing ITR, definitely check these 7 things
Let us know what 7 things you should check before filing income tax return.
1- First of all Form-16
To file ITR, a salaried person first needs Form-16. You will get it from your company, which contains all the information about the tax levied on your salary. Let us tell you that many companies issue Form-16 in the second-third week of June. However, if you have hidden any information from your employer i.e. your company, then it will not be in Form-16. Keep in mind, if you have Form-16, which contains complete information about the tax levied on your salary, then filing ITR becomes a matter of a few minutes for you.
2- Check TDS-TCS in 26AS form
Before filing income tax return, you must check 26AS form once. Check once whether the information about tax imposed on you in Form-16 is correct or not. If there is any mistake, get it corrected in time. Keep in mind that if any information is wrong and you get it corrected, it may take up to 7-10 days.
3- Check income and TDS-TCS in AIS form
After checking Form 26AS, you should also check AIS i.e. Annual Information Statement form. This will let you know what transactions you have done in the whole year. If you have earned from other sources other than salary i.e. rent or interest etc., then its information will also be available in AIS form. Along with this, you will also know what you have sold i.e. what you have earned money from. It is important to check that no transaction is missed. If something is missed, then get it corrected in time.
4- Check capital gains statement
This form needs to be checked only by those who have made capital gains. If you have invested in any stock or mutual fund, then it is important for you to check this form. If you have a capital gain of more than Rs 1 lakh, then you will have to pay 10 percent tax on it. On the other hand, if you have a short term capital gain, then you will have to pay 15 percent tax on it. The calculation of this tax is done by the brokerage firm itself and sent to the customers. If you have not received this form, then you can talk to your brokerage firm.
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5- Check the interest earned
There are many taxpayers who do not report their income from other sources. The most common income is the income from interest. If you have made an FD or have earned interest from your savings account, then it is important to show it in your income. You will get this information in the AIS form as well, because it has a record of every transaction related to your PAN card. Remember, if you show wrong income, then you may get a notice from the Income Tax Department.
6- Be sure to show income from crypto assets
If you have invested in any crypto asset, then it is very important to show the income earned from it. You will have to pay 30 percent tax on the income earned from crypto assets. Be sure to mention this while filing ITR, otherwise you will definitely get a notice from the Income Tax Department.
7- Also tell about foreign assets and income
There are many people who have property even abroad. If you also have property abroad and you earn from it, then you will have to tell about it while filing income tax return. If you have kept money in a foreign bank account, then you will have to tell about it while filing income tax return.
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