ITR refund: More than 5.44 crore returns were filed till July 31, 2022, the last date for filing income tax refund. Taxpayers who could not file their returns due to any reason are now filing returns by paying penalty. In the midst of all this, those who have filed returns are now waiting to get the refund. If you are also one of those people who are eagerly waiting to get the refund, then we are going to give you five important information related to refund, which you may not have known.
- Eligibility for Refund: Taxpayers who file ITR on or after the due date specified by the Income Tax Department are eligible for ITR refund.
- Interest accrues on ITR refund: If a taxpayer has filed ITR within the due date of 31st July 2022, then he will get interest on ITR refund with effect from 1st April 2022.
- Rate of interest on ITR refund: Taxpayers who file ITR within the given date of filing return are eligible for 0.50 percent monthly interest on their ITR refund amount.
- Tax Rules on ITR Refund: ITR refund amount is an income which the taxpayer has already reported in the respective financial year. Hence, the ITR refund amount is not taxed. However, the interest earned on the ITR refund amount is taxed as per the applicable income tax slab on the taxpayer after adding the interest amount with the net annual income of the individual.
- Calculation of interest on ITR refund: If a taxpayer has failed to file ITR within the given date for filing ITR, he can file his ITR by paying a late fine. However, one who has filed ITR after 31st July 2022 will not get interest on ITR refund with effect from 1st April 2022.
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