What is income tax?
The government imposes a tax on taxable income of all persons who are individuals, Hindu Undivided Families (HUFs), companies, firms, association of persons, body of individuals, local authority and any other artificial judicial person. Levy of tax is different on each person. Indian Income Tax Act, 1961 levies and governs income tax. The Indian Income Tax Department is administered by CBDT which is part of the Department of Revenue under the Ministry of Finance, Govt. of India. Income tax is a key source of funds that the government uses to fund its activities and serve the public.
What is an Income Tax Refund?
Under the income tax and other direct tax laws, refunds arise in those cases where the amount of tax paid by a person (or paid on his/her behalf) is greater than the amount on which he/she is properly chargeable. This is noted under Sections 237 to 245 of the Income Tax Act, 1961.
Am I eligible for an income tax refund?
There are many cases wherein you will be eligible for a refund. Some of them are:

  • If the tax you’ve paid in advance on the basis of self-assessment is more than the tax payable on the basis of regular assessment.
  • If your tax deducted at source (TDS) from salary, interest on securities or debentures, dividends, etc. is higher than the tax payable on the basis of regular assessment.
  • If the tax charged, based on regular assessments, gets reduced because an error in the assessment process was resolved.
  • The same income is taxed in a foreign country (with which the government of India has an agreement to avoid double-taxation) and in India as well.
  • If you have investments which offer tax benefits and deductions that you have not declared.
  • If you find, after considering the taxes you’ve paid and the deductions you are allowed, that the tax paid amount is in the negative.
What are the benefits of filing my Income Tax Returns?
Many individuals assume that filing of returns is a harrowing experience. But now-a-days an individual can file a return very easily and quickly. Filing of Income Tax Returns helps an individual in many ways. It helps an individual to manage his financial affairs effectively. The benefits of filing of Income Tax Returns are as follows:

  • It becomes your standard income proof
  • You can get loans sanctioned quickly and easily
  • You can trade in stocks, open bank accounts, get bank credits, make investments etc. and you can do all these with ease if you remain good in the financial institutions books by filing your tax returns.
  • You can claim your refunds for taxes deducted or paid in excess of your tax liabilities.
  • Many foreign countries want to know how financially sound you are before they grant you with a visa. So to prove your financial worth, Income Tax Returns are a must.
  • Not to forget, it is your obligation. The taxes you pay on your income will work towards betterment of our nation.
  • For professionals and business organisations, Income tax returns are a must to become eligible to secure certain tenders
What is PAN card and why it is required?
A PAN card is a 10 digit unique number that is assigned to every taxpaying individual and entity in India. The PAN card was designed solely for the purpose of helping the government identify taxpayers and ensuring these entities paid the taxes due as per the tax slabs they fall under. While many think a PAN card is only required at the time of filing your Income tax returns, which is usually once a year, there are a number of uses that the PAN card fulfils relating to income tax.