Most people would have filed their Income Tax Return (ITR) by now. But do you know your tryst with ITR does not end with here. This post we discuss what awaits you after you have filed your tax returns?
Expect mail from IT department u/s 143(1)
Once you file your ITR, the income tax (IT) department also assesses the return with all the internal information available with them. After this step the IT department sends a mail comparing the taxes as claimed by you and as computed by the department. There could be 3 scenarios:
- There is no difference between the computed taxes – No action required
- The tax computed by IT department is more than you filed – Additional tax demand
- The tax computed by department is lower – Tax refund expected
As stated above in the first case, everything looks good and so no action is required from your end. In second case if you agree to the IT department calculation pay the additional tax. In third case think how to spend/invest additional tax refund!
The mismatch is generally due to incorrect claims, numerical errors, excessive or wrong deductions or exemptions.
What if you Do NOT Agree to Tax Calculations?
In case you do not agree to the income tax department you can file a rectification application u/s 154 challenging the computation. If the ITR was filed online, the rectification request would also be filed online. For offline ITR, the request would be offline.
This rectification request can be filed up to four years from the end of the financial year in which the assessment order was passed.
For online rectification request login to the ITR portal. Go to My Account choose ‘Rectification Request’. Enter the CPC reference number and order date from the intimation letter and then your clarification.
The assessing officer has to either accept or reject the request within 6 months from the month application was filed. In case the rectification is rejected, you can appeal to Commissioner of Income Tax (Appeal) u/s 246A(1)(a).
Track Your Refunds:
In case of tax refunds, the excess tax is credited within 2-3 months of filing ITR. In case you do not receive your refund you can track it online either on the tax department’s website or at the National Securities Depository Ltd. (NSDL) site. Usually the refund is delayed due to wrong information of bank account or other data entry issue. The status would give you the reason for delay.
If the refund was issued but has not reached you due to any reason you can raise a request for it to be re-issued online through the ITR website – ‘My Account’ tab.
Revise Your ITR:
If you notice any discrepancy or omission on the return filed before it’s processed by IT department, you can file a revised return u/s 139(5). The revised return has to be filed online if the original return was filed online. Similarly if the original returned was filed physically, the revised return has to be filed physically.
You should revise your ITR as soon as you find discrepancy as you would not be able to do so after IT department process your returns.
Also Read: Why and How to Revise Your Tax Return?
Keep Your Documents Safe:
You need not give any supporting documents while filing your income tax return. But the department can ask for supporting documents used to claim your income, tax deductions and exemptions etc anytime for the next seven years.
To save yourself from any trouble you must keep a record of following documents:
- Form 16
- Form 16A for TDS deduction
- TDS/TCS certificates
- Rent Receipts/Proof of rent payment if you had claimed HRA
- Investment Proofs used for tax deductions like PPF account statement, NPS statement, NSC copy, etc
- Interest repayment certificate for exemptions on Home/Education loan
- Documents for all high value transactions (either sale or purchase) like gold, property and other precious items.
- Details of all assets/liabilities mentioned in ITR
The above list is to give you example and not exhaustive.
Have grievances, Register it
In all the process if you have any grievances, you can register it online. You can then check status of your complaint online.