How to maximise your income tax refunds

The income tax return filing season has started. Filing return is a mandatory requirement for all taxpayers except those whose income does not exceed the basic exemption limit of Rs 2.5 lakh per annum under the old tax regime and Rs 3 lakh under the new tax regime. ITR not only helps the tax department calculate the real tax liability of a person, it also helps taxpayers to get a refund of taxes paid in excess of their liabilities.
There could be several reasons for a taxpayer to get a refund. When the advance tax paid under self-assessment exceeds the actual tax liability; tax deducted at source (TDS) on income such as salary, interest on securities or debentures, dividends, or other sources is higher than the tax payable; or same income is taxed twice in India and a country with which India has a tax treaty. Also, there could be situations when a correction in the assessment process leads to reduction in tax liability or you may not have reported earlier eligible investments or expenses that qualify for tax deductions.
So, while filing returns, you must take the following steps to maximise your refunds.
File on time: First, always file your return on time. Delaying it not only brings penalties but can also affect your ability to claim certain benefits or carry forward losses.
Claim all eligible deductions: Nehal Mota, Co-Founder & CEO, Finnovate, says, "making sure you are claiming all the deductions you're eligible for under the Income Tax Act—things like investments under 80C, health insurance under 80D, NPS under 80CCD(1B), and donations under 80G. These can significantly reduce your taxable income."
Rakshith H D, CFP and Head Digital Sales, GoalTeller, advises, if you receive HRA or other allowances like travel and medical, claim them with proper proofs.
Choose the right tax regime: Choosing the right tax regime is equally important. New tax regime does not allow deductions on investments and certain expenses.
Charu Pahuja, CFP CM, Group Director and COO, Wise Finserv, says one of the first and most important decisions is to choose between the old and new tax regime—an option that can directly affect your home income.
Reconcile your tax credits: Don't forget to check your Form 26AS before filing ITR. This is where you can see the tax that's already been deducted from your income—whether by your employer, bank, or clients. If they've deducted more than necessary, you can claim it back as a refund, but only if you've reported everything correctly.
Rakshith H D says don't forget to include all TDS and advance tax paid by employers, banks, or other institutions to ensure accurate refund claims.
Gather all necessary documents and report all income: Before filing your income tax return, ensure you have all necessary documents like Form 16, interest certificates, Form 26AS, AIS, and investment details to avoid missing any refund opportunities.
"Report all sources of income, including bank interest or freelance earnings, to avoid future complications," says Rakshith H D of GoalTeller
Offset losses: If you have incurred losses in stocks or property, set them off against your income to lower tax liability.
Ensure accurate filing: Filing your return early and e-verifying it through Aadhaar OTP or net banking ensures faster processing of refunds. Finally, double-check all details, including PAN, bank account number, and deductions, before submission to ensure smooth and timely refunds. Rakshith H D says, "In case the Income Tax Department requests additional information, respond promptly to avoid delays."

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

Indian Express

32 minutes ago

• Indian Express

ACB arrests AMC estate inspector in disproportionate assets case

The Gujarat Anti-Corruption Bureau (ACB) arrested an estate inspector of the Ahmedabad Municipal Corporation (AMC) for alleged possession of disproportionate assets (DA) to the tune of Rs 3.07 crore, according to a statement. The ACB statement issued on Thursday stated that the accused Jignesh Surendra Shah, a Class-2 Estate/TDO Inspector of East Zone of the AMC, was booked and arrested for the alleged possession of disproportionate assets (DA) to the tune of Rs 3.07 crore, which it alleged was 102.47% disproportionate to his known sources of income. According to the statement, the ACB conducted its preliminary inquiry based on an application it received regarding Shah's allegedly disproportionate assets. The ACB said that the period of investigation ranged between April 1, 2012 and March 31, 2022, during which the officer had allegedly used unlawful means to accumulate disproportionate assets. The investigation is being carried out by ACB Police Inspector VD Chaudhary. Further probe into the matter is underway.

Time of India

39 minutes ago

• Time of India

Strict action will be taken against projects lacking proper permissions, says HYDRAA chief

Hyderabad: At the Times Home Hunt Property Expo held recently, Hyderabad Disaster Management and Asset Protection Agency (HYDRAA) commissioner A V Ranganath cautioned that any new projects lacking proper permissions or built on encroached land will face strict action. 'Only layouts approved before HYDRAA's formation on July 19 last year will be exempt. All others must comply with current regulations,' said Ranganath, noting that unchecked construction contributed significantly to urban issues like flooding and traffic congestion. HYDRAA was set up not just as a watchdog, he said, but also as a proactive body aimed at promoting sustainable and responsible urban development. 'HYDRAA is not just about demolitions. We are focused on creating a healthier, more environmentally conscious real estate ecosystem,' Ranganath added. The authority is working closely with other agencies to rejuvenate lakes, address urban flooding, and improve drainage infrastructure. He also pointed out that traffic congestion alone costs the state nearly Rs 300 crore in infrastructure loss, underscoring the need for better planning. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Giao dịch vàng CFDs với mức chênh lệch giá thấp nhất IC Markets Đăng ký Undo 'We received criticism that HYDRAA slowed real estate activity, but there were geopolitical concerns, delays in RERA clearances, and approval bottlenecks at GHMC and HMDA—also played a role. If a project is legally approved, we won't interfere. Our aim is to ensure compliance and environmental responsibility,' he said.

Time of India

39 minutes ago

• Time of India

JDA to construct 71 sector roads

Jaipur: With city roads deteriorating due to potholes, craters, and uneven surfaces, the Jaipur Development Authority (JDA) has decided to construct 71 sector roads under its annual road maintenance programme. Though these roads were part of the Master Plan 2025, the JDA had been unable to execute them earlier due to various delays. Now, a portion of the road maintenance fund will be allocated for their construction. "We have four categories of sector roads – A, B, C, and D. Out of 226 proposed A and B category roads in the Master Plan, 71 will now be developed. The civic body has already granted administrative and financial approval of Rs 454 crore for the project," a senior JDA official said. During the previous Congress govt, sector roads were prioritised by category, with 'A' being the most critical. A JDA engineer added that these 71 roads were selected based on future traffic needs and planned settlements along both sides. "Several rounds of discussions were held between zone deputy commissioners and zonal engineers to finalise the list of sector roads. We also considered the availability of land and the number of encroachments to be removed before selection. Hopefully, construction will proceed smoothly," said a JDA engineer. Officials confirmed that out of the 71 sector roads, six will be developed near Niwaru Road and Govindpura, 13 near Muralipura, nine in Mansarovar and Bhankrota, two near Delhi and Agra Roads, and 16 in the Vartika area. "Tenders have already been floated for some of them," an official added.