What are the strategies to maximize tax refunds after submitting an income tax return (ITR)?

 

Taxpayers must submit an income tax return to the government, commonly once a year, in order to disclose their earnings, deductions, and tax liabilities. Filing ITR allows you to calculate the amount of tax due to the government or the prospective tax refund from tax-saving investments. After filing your income tax return, you can employ the following tactics to maximise your tax returns, according to different tax experts.

Sujit Bangar, Founder, Taxbuddy.com

1. File income tax returns on time to avoid late filing fees which will reduce your refund amount or can add an additional tax liability.

2. Before filing your tax returns, make sure to verify your personal and income details with 26AS & AIS/TIS. Check if all the TDS are reflected in 26AS so that full TDS can be claimed or adjusted against the tax liability and flag any incorrect information or income added to your PAN on AIS/TIS.

3. You have the option to switch your tax regime at the time of filing your returns. If you realize that you have chosen the wrong regime earlier, it is advisable to switch to the correct regime before filing your returns. This can help you pay lesser taxes or even claim a refund if excess taxes were deducted from your income.

4. When calculating your final taxes, it is important to include the advance tax you have paid. This will help in adjusting any additional taxes that may be due, which can be adjusted with the advance tax payments you have already made. So, remember to mention the advance tax payments while calculating your final taxes.

5. You can claim tax deductions on medical expenses incurred by you or your family during the financial year. Keep all medical receipts and bills as proof.

6. Claim tax deductions for medical expenses with proper receipts and bills.

7. To avail HRA exemption, provide the required documents like rent receipts if you are a salaried individual residing in a rented house.

8. You can claim tax deductions for the interest paid on an education loan taken for yourself, your spouse, or children.

9. Donations to recognized charitable organizations allow you to claim tax deductions. Under section 80G of the Income Tax Act, you can claim deductions up to 50% of the donated amount.

10. If you have a health insurance policy, you can claim a deduction of up to INR 25,000 for the premiums paid. For senior citizens, the amount can be increased to INR 50,000.

11. Please ensure bank details are filed correctly. Mostly this is the reason for delayed refund.

Source Link: https://www.livemint.com/money/personal-finance/what-are-the-strategies-to-maximize-tax-refunds-after-submitting-an-income-tax-return-itr-11684061275721.html

Website Link: https://www.taxbuddy.com/


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