WHEN DO YOU GET AN INCOME TAX REFUND?

An assessee becomes entitled to an income tax refund when the tax they have paid exceeds what they are liable to pay in a financial year

- Narayan Krishnamurthy

Paying income tax in India is a tedious exercise. The whole process is like a giant ritual, where one is expected to keep track of their documents, bank statements and tax savings. Most taxpayers hope for an extension of the date to file tax returns because of the energy-sapping nature of the exercise. But there is a glimmer of hope once the income tax is filed, and that has to do with receiving an acknowledgement of the tax paid and a tax refund, if any. Income tax refund takes place when the taxpayers have paid a higher amount of tax than they are liable to pay, based on the tax slab they fall under.