Claim for Income Tax Refund
An income tax return is a document in
which you file with the Internal Revenue Service or Income Tax department
reporting your income, profits and losses of your business and other deductions
as well as details tax liability. An income tax refund is a process of
refunding tax when an assessee declares details of income, deductions,
exemptions, taxes payable on their taxable income and the IT department
calculates that the payer in excess has paid the tax. Filing an income tax
return is mandatory to claim tax deductions, eligible exemptions like long-term
capital gains exemptions, which might eventually bring your taxable income to
zero. Individuals whose annual income is more than the basic exemption limit,
i.e. Rs 2.5 lakh need to mandatorily file their income tax returns. Even when
there is no tax liability, an income tax return (ITR) must be filed if the
total income exceeds the threshold as mentioned above.
In case you disagree with the tax
demand raised in the notice for any reason such as incorrect computation, the omission of certain deductions or TDS etc., you may respond to it online by
following the instructions provided in the notice in 30 days.
Read in detail: How to claim for Income Tax Refund
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