How to get Income tax refund?

Are you still waiting for your tax returns? Is it IT department not responding to your queries regarding last year tax returns? Here is some help.
We all know the working of the Income tax department. Genuine tax-payers who honestly pay taxes find it difficult to get back the refund even after paying the taxes honestly. Hundreds of professionals in service sector file their returns on time, but the Income tax department bureaucratic and lengthy procedures ensure that majority of the individual don’t get their tax refund on time.

However, there are still some things that one can keep in mind to see that he/she receives the tax return on time:

1. Always opt for ECS or Electronic Clearing System, for claiming your tax return

2. Always put your PERMANENT address where you can expect the postal mails to come without fail. Even if you work in Chennai as a software engineer, mention the address of your native town in UP where someone (family) always stays. The reason is that most of the times, you may not be there at your residence to receive the notice/letters sent from the IT Department (like going on onsite visit).

3. Always mention your full address clearly.

Even after ensuring the above, there is a 90% chance that you may not receive your tax refund on time. What to do then?
Simple, Right to Information or RTI act is there to help you out.
Here is what you should do.
Write a simple application in the below mentioned format in a plain paper and submit it to the Income tax office where you’ve filed your tax returns. You can send the application by Speed Post/Registered Post as well. Along with that you should send a fee of Rs. 10 (through Demand Draft). The best is to submit the application in person at the IT office, as that will save you postage cost as well as DD charges.
Format:
{Your Name and Address and Phone Nos.}
To,
The Public Information Officer,
Income Tax Department,
{Address of Income tax office}
Sub: RTI Application
I, {Your Name}, PAN No. {You PAN No. }, have filed the Income tax returns on date {Date of Filing the Returns}. As per the filings, I am expecting a tax refund of Rs. {Amount}.
However, till date, I’ve not received any refund. Under the Right to Information Act, 2005, I wish to apply for the following information:
1. I’ve opted for ECS refund, but not received anything in my bank account. What are the reasons that I have not been sent my refund till date?
2. If the refund was sent by post, please provide the proof of sending the refund check along with date of sending
3. Since the refund has not been sent on the specified time, what is the amount of interest I am supposed to receive for delayed refund? Please explain the calculations mentioning the no. of days and interest rate.
4. Who is the concerned officer with whom my IT refund has been lying pending since so many days?
5. When can I finally expect the refund, please mention the date.
I am submitting the RTI application fee of Rs. 10 along with this application. As per the RTI laws, along with you response, please provide the name of the first appellate authority to whom I may file my first appeal, if required.

Thanks,
{Your name & Signature}
Encls: Copy of IT returns

Related: Check your tax refund status online for previous years!

Follow the above process and you will get a response for your RTI application within 30 days. If submitting the application in person, make sure you carry 2 copies, and take the acknowledgement stamp on the second copy.

Many NRI’s have been using the RTI act to get their IT refunds. No bribe, no more delays, only a simple 10 Rss. RTI application does the task.

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IRS Tax Rebate: Schedule for Tax Refunds

Wondering when will you receive your tax refund or tax returns?

Following a generous Tax refund scheme, the schedule for sending out the tax refund has been decided by the IRS. It depends upon your SSN or Social Security number, the mode of your desired payment type (electronic fund transfer or paper type) and the amount.

The IRS on Monday said it would begin sending out 130 million tax rebate payments aimed at boosting the economy on May 2.

Here is the table as available from IRS about when can you expect the tax refund money or checks to be dispatched to you.

Direct deposit payment
If last 2 digits of your SS# are:	Your rebate should be sent by:
00-20	May 2
21-75	May 9
76-99	May 16
Paper check
If last 2 digits of your SS# are:	Your rebate should be sent by:
00-09	May 16
10-18	May 23
19-25	May 30
26-38	June 6
39-51	June 13
52-63	June 20
64-75	June 27
76-87	July 4
88-99	July 11

Tax Refund Status Online: Still waiting for previous year’s tax refunds?

If you have filed your tax returns on time and are waiting for a refund, then here is some help to track what may have happened to your tax returns.
The Income Tax Department has put on its website the list of income tax refunds of all salary tax payers which could not be sent to the concerned persons for want of correct address.

Salary taxpayers who have not received refunds for assessment years 2003-04 to 2006-07 can click on the link below and query using the PAN number and assessment year whether any refund due to them has been returned undelivered from the menu `undelivered salary refund management system'. If any refund has been returned undelivered due to change in address, then the taxpayer can enter the present address and the refund will be sent to the taxpayer at the new address.

The link to the website is as under:

http://www.incometaxindia.gov.in/CCIT/refundsearch.asp (Opens in a New Window)

Related: Use RTI and get Tax refund in just Rs. 10!

IRS Guidelines for getting Tax Rebate: FAQ about Tax Rebate

Recently, the US government has declared a new program offering Tax Refund or Tax Rebate to the extent of $1800 for a family of 4 – 2 adults and 2 kids below 17. However, the norms are set for the eligibility and the order in which one can get the tax rebate.

The moral of the story is “First Come, First Serve” or the “The sooner you file your tax returns, the sooner you get your rebate check”.

It is still a question whether the tax rebate offered by the Bush administration will give the required jumpstart the economy. However, filing your 2007 tax return is a prerequisite to receive your tax rebate check.

As per IRS, the tax rebate checks will be mailed beginning in May. People who have already filed their 2007 tax returns and reported at least $3,000 in qualifying income don't need to do anything else. The IRS will assess their rebate eligibility and send a check to those who qualify. Qualifying income for the purposes of the rebate includes wages and salaries, Social Security benefits and certain veterans' and retired railroad workers benefits.

The IRS will also send 2 notices, first to explain to taxpayers the stimulus payment program and second one to confirm the amount of your rebate. The second notice can be expected 7 to 10 days before you receive your payment if you would like to have the tax rebate check sent by mail. If you opt for electronic direct deposit on your 2007 tax return, the second notice may arrive simultaneously with your payment. As with refunds, direct depositing your rebate is the fastest way to get your payment, reducing the time it takes by at least a week.

Some people who may be eligible for tax rebate still may not receive a check, either in full or part. Because, if there are any outstanding back taxes or you have other non-tax federal liabilities such as past-due child support or federal student loans, the IRS will apply at least part of your rebate to those liabilities.

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US Tax Rebate: FAQ

The US is on its way to give a whooping 130 million Americans a great respite from taxes – following the tax-rebate proposal.

President Bush will be signing an economic-stimulus tax rebate bill that will include tax rebates for Americans who have a minimum cutoff level of Accumulated gross income.

As per the news: Most individual taxpayers will be eligible to receive a $600 rebate, and married couples who file jointly will be eligible to receive $1,200. Other taxpayers who have dependent children under the age of 17 can expect an additional $300 per child as tax-rebate. As per an estimate, a typical family of four with two children will receive around $1,800 as tax-rebate.

The minimum requirement for getting the tax rebate is set as follows (http://www.usatoday.com/money/perfi/2008-02-10-rebate-faqs_N.htm):

The rebates will phase out for single taxpayers with adjusted gross income (AGI) of more than $75,000 and married taxpayers with AGI of more than $150,000.

The phase-out will be 5% of the amount of income that exceeds the threshold.

If, for example, you're married and your 2007 AGI is $160,000, your rebate would be $700. One can find more responses to the FAQ about Tax rebate on the link mentioned above. Here are the additional details about how to get your tax rebate in the quickest possible way

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Tax return filing information

There is still a lot of confusion about filing of tax returns, so just wanted to share some information regarding tax returns filing. The last date for filing the tax returns have already passed (31st July 2007). However, you may still NOT have to pay any penalty for filing returns late.

Here’s the actual procedure for tax return filing and penalty:
• As per the rules of income tax department, the tax returns should be filed by 31st July 2007. Otherwise, an individual MAY have to pay penalty for filing late returns
• When will the penalty be imposed? Penalty on late filing of income tax returns will be imposed as follows:
o ONLY if there is an outstanding amount of tax that is due. Meaning: If you have NOT paid taxes by 31st July on your income in the financial year ending March 2007, then there will be a penalty imposed for filing late returns
• For salaried employees, where TDS (tax deducted at source) is already taken by the employer, should NOT worry at all. Such individuals can file their returns even till 31st March 2008, i.e. till the end of this current financial year without any penalty.
• However, in case you have an extra income which is other than your salary, like income from bank interest, mutual funds, stock trading, or other businesses, then you MUST pay interest on that on your own. This tax is to be paid in addition to the TDS by your employer, and should be paid before 31st July.
• Say, if my TDS (as mentioned in my form-16) issued by my employer is 20,000 Rs. Whatever is mentioned in form-16 is based upon my salary. However, I may have additional income from interest earned on the money in bank account and fixed deposit, short term capital gains for trading in stocks or income from other businesses. I HAVE THE RESPONSIBILITY TO DECLARE THIS ADDITIONAL INCOME AND PAY TAX ON THAT.
• There are 2 ways of paying taxes on this additional income
1. I declare to my employer that I have this additional income and ask him to deduct TDS on my total income (salary + this additional income). This additional income is quoted as “Income from other sources” in my form-16, and becomes taxable. So if it is included in my form-16, I DON’T have to do anything.
2. If I don’t declare this additional income to my employer and hence it is NOT mentioned in my form16, then I should deposit tax by filling a challan form and deposit it in any of the banks. I should then file my returns with a copy of this challan attached to my return form (ITR-1)
• In case I have deposited all my taxes before 31st July, then I need not worry about filing of taxes before 31st July, as there is NO outstanding taxes to be paid by me. I can as well file my returns till 31st March 2008 without any penalty.
• In case I’ve missed out paying taxes on some (or all) of my income: I was suppose to pay my taxes before 31st July. Since I’ve missed it, then I am required to pay a penalty of 1% PER MONTH on the OUTSTANDING AMOUNT ONLY (not on the entire amount). For e.g., my employer deducts 20,000 as TDS and mentions it in my form 16. I have additional income of 1000 Rs. on my trading and bank interest. I missed paying tax on this 1000 Rs. before 31st July. I realize my mistake later and I pay my taxes on this additional income of 1000 (say 20% i.e. 200 Rs.) in the month of August. So I should pay a 1% additional penalty since I am late by a month – i.e. I should pay 1% of 200 = 2 Rs, a total of 202 Rs. as my taxes and then file my returns.
• One very good way of filing the returns is online – BUT NOT on PAY websites (like moneycontrol or taxsmile). The official website of Income tax department is offering this service for free. I had filed my returns on 31st July, within a matter of just 5 minutes, that too FREE OF COST and avoiding lengthy queues. The website is quite clear and explains everything in easy steps.
• Let me know if you have any questions – please post them as comments.


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