How To Get The Refund You Forgot To Claim ?

There are many circumstances in which a person may forget to claim the credit of tax deducted at source. This is specially true of the cases where a person is either not supposed to file return of income as most of income is exempt , but some kind of TDS has been made or a person is ignorant about claiming refund of TDS/TCS . In all such cases ,it is possible to claim refund by filing condonation petition u/s 119(2)(b) of the I T Act even if such claim was not made in last six years.

For example , if you find that you forgot to claim refund for Asst Yr2003-04 , you can file the petition to condone the delay in filing of return and claim of refund to Commissioner or Chief Commissioner or CBDT till 31/3/2010 according to value of refund involved.

Important points
The important points of the scheme as per the CBDT instruction no 12/2003 Date : 30.10.2003 is as under

1. The petition is to be made to u/s 119(2)(b) of the I T Act.

2. The power to condone delay in claim of refund is as under

i. With CIT upto Rs 1,00,000

ii. With CCIT upto Rs 5,00,000

iii. With CBDT claim exceeding Rs 5,00,000.

3. No interest u/s 244A is allowed.

4. Refund should be on account of TDS or TCS or Advance Tax. It means that self assessment case is not covered under this .

5. Income of the assessee should not be assessable in the hands of any other assessee.

6. If the return is being filed for first time , the CIT may order that the refund should be issued only after scrutiny order u/s 143(2) is passed by the A.O.

How to make the claim?
Following steps should be followed

• Write an application u/s 119(2)(b ) of the I T Act stating clearly stating why you could not file return or claim refund.
• Enclose evidence in support of your claim.
• Enclose evidence of your TDS /TCS or Advance tax deposit.
• Clearly state the computation of your income and tax for that year.

Once the CIT or CCIT or CBDT makes an order condoning the delay u/s 119(2)(b) of the I T Act , the A.O will give refund .

Read More...

Summary only...

Check Your Refund Status Online Now!

A News You Can Use

NSDL which established Tax Information Network on behalf of  income tax department has put following on its website for tax payers.

The refund banker pilot scheme has commenced from 24th Jan 2007. It is now operational for taxpayers assessed in Delhi in salary charges i.e. CIT XIV, XV,XVI and one business charge i.e. CIT IX. It is also operational in Patna for CIT I, II and Central. From September 30, 2007 the pilot has been extended in few other stations i.e. Bangalore, Chennai, Delhi, Kolkata, Mumbai (except for company and exemption refunds).

In the pilot scheme all Income tax Returns will be processed by Assessing officers. ITOs, Asst. Deputy Commissioners, Commissioners. The refunds (by ECS or paper cheques)will be sent by CMP branch of SBI.

Taxpayers will get status of refund 10 days after the refund has been sent by their Assessing Officer for refund banker. Status will be available only for those taxpayers whose refunds are to go through refund banker pilot scheme.

 

Click Here To Know Your Refund Status

Read More...

Summary only...

How To Get Unusually Late Refunds?

I am a chartered accountant. this is to submit after lots of efforts by the income tax department ward and getting bad name from my clients. One such case is of my client (ASS. YEAR 2006-07) The IT return was filed on 29.07.2006 with acknowledgement no 4621012628 seeking refund of 12762 + interest. It took much more than the required time to process the return and now since middle of June 2007 i am taking efforts to get the refund and finally i have been told that nothing can be done as the records show the return has been processed on 16.07.2007.May I know what should i do or tell my client to do.....? dixit duggal

This is happening because there is no proper record management in the income tax department. Thankfully, now every thing is being computerized and this type of problems faced by taxpayers will soon become things of past.

First of all , you need to have patience for another three- four months.

Take following steps

1. Write to A.O giving copies of all papers like return photocopy /TDS photocopy etc whatever record you have. Give a copy to Range JCIT/Add/CIT.
2. After fifteen days write to Commissioner of income tax . The tone of letter should be such that although you want the refund, yet do not criticize the A.O severally unless he is biased towards you. The reason being the vast numbers of returns without any record management plan with in the department make the life of A.O sometimes hard.
3. If nothing happens , write to the Grievance Cell which is generally with administrative Chief Commissioner’s office. Wait for any response till another one month.
4. If nothing happens, apply before Ombudsman giving proof of writing to AO/CIT/and grievance cell. There is fixed time within which ombudsman has to solve the problem.Read hear to know more on ombudsman.

If you have already taken step one , go directly to step 2 with proof of writing to A.O

Have patience. You will get success.

Read More...

Summary only...

Can Claim Of Dedcution /Exemption/Refund Be Made After Lapse of More Than Two Years?

I am working in an MNC and I have paid tax of 24,000 in the Financial Year 2005-06. I had actually made investments worth 90,000 before 31st March for which I didn't claim deduction. When I filed the returns, I didn't have the documents handy with me, so I filed returns showing as No Refund. Now I have all the documents with me.. can I claim the refund now from the IT dept. Varun

In your case the assessment year is 2006-07 for which you can revise return upto 31/3/2008 if the assessment has not been completed yet. I feel you should file a revised return to A.O immediately and claim if any refund comes . If he rejects the application saying that the time for revision has already lapsed .Still you can make an appeal to the Commissioner of income tax u/s 119(2)(b) of the I T Act even if the assessment is done by the A.O , the claim can still be made and you can get refunds.

You make a detailed application before commissioner of income tax under whom your A.O is working. Give proper reasons why you could not claim the said exempt income and that why the income is exempt. The application is made under Section 119(2)(b) of the I T Act. The relevant portion of the I T Act is given below

119(2)(b) : "the Board may, if it considers it desirable or expedient so to do for avoiding genuine hardship in any case or class of cases, by general or special order, authorise any income-tax authority, not being a Commissioner (Appeals) to admit an application or claim for any exemption, deduction, refund or any other relief under this Act after the expiry of the period specified by or under this Act for making such application or claim and deal with the same on merits in accordance with law;"

CBDT has increased the monetary limit to entertain such application u/s 119(2)(b) vide instruction No. 12/2003, dated 30-10-2003. which is given below

2. The matter regarding delegation of powers for acceptance/rejection of applications, requests for condonation of delay under section 119(2)(b) of the Income-tax Act, 1961 has been receiving the attention of the Board. In modification of the aforesaid orders/circulars, the Board has decided to vest the CCIT with the powers of acceptance/rejection of such applications requests involving refund claims upto Rs. 5,00,000, and the decision of the CCIT would be final. The CIT will have the powers of acceptance/rejection in cases involving refund claims up to Rs. 1,00,000. However, cases involving refund claims exceeding Rs. 5,00,000 would continue to be processed by the Central Board of Direct Taxes, both for acceptance and rejection.

3. It has also been decided that cases where delayed claims of refunds are being considered would be taken up for scrutiny.

4. The powers of acceptance/rejection within the monetary limits delegated to the CCIT as above would be subject to the following conditions :

(i) the refund has arisen as a result of excess tax deduct­ed/collected at source and payments of advance tax under the provisions of Chapters XVIIB, XVIIBB and XVIIC, respectively and the amount of refund does not exceed Rs. 5,00,000 for any one assessment year;

(ii) the income of the assessee is not assessable in the hands of any other person under any of the provisions of the Act;

(iii) no interest will be admissible on the belated refund claims;

(iv) if the refund arises from the return of income filed for the first time, then the CCIT will be empowered to direct the Assessing Officer to make a regular assessment under section 143(3) and then issue the refund, if any;

(v) no claims under this provision will be entertained where a period of more than 6 assessment years prior to the current assessment year has elapsed;

(vi) these instructions will cover the requests for condona­tion of delay under section 119(2)(b) where such requests have been filed in the Board, or have been forwarded to the Board by CCIT/DGIT.

These instructions would, however, not cover cases prior to assessment year 1996-97.—

Therefore , in my opinion if any person forgot to claim any exemption , deduction or refund or any relief provided in the income tax Act, application u/s 119(2)(b) should be made to appropriate authority according to monetary limit. The Law provides such mechanism for relief.

Read More...

Summary only...

How Ombudsman Can help You To Settle Grievance?

Recently government , among many , new initiative to interact and better service to ordinary tax payers , have created the posts of ombudsman in some cities -New Delhi,Mumbai, Chennai, Kolkata, Bangalore, Hyderabad,Ahmedabad, Pune, Kanpur, Chandigarh, Bhopal and Kochi.etc......having wide territorial jurisdiction. The ombudsman are independent authority created to settle grievance of the taxpayers. He has been given wide powers to pass orders and settle the complaint . He is also empowered to take up the matter with the highest rank senior authority regarding the erring official.

What types of complaint can be filed with the ombudsman?

A complaint on any one or more of the following grounds alleging deficiency in the working of the Income-tax Department maybe filed with the Ombudsman:

• 
  (a) delay in issue of refunds beyond time limits prescribed by law or under the relevant instructions issued from time to time by the Central Board of Direct Taxes;
  (b) sending of envelopes without refund vouchers in cases of refund;
  (c) non adherence to the principle of ‘First Come First Served’ in sending refunds;
  (d) non acknowledgement of letters or documents sent to the department;
  (e) non up-dating of demand and other registers leading to harassment of assessees;
  (f) lack of transparency in identifying cases for scrutiny and non communication of reasons for selecting the case for scrutiny;
  (g) delay in disposing cases of interest waiver;
  (h) delay in disposal of rectification applications;
  (i) delay in giving effect to the appellate orders;
  (j) delay in release of seized books of account and assets, after the proceedings under the Income-tax Act in respect of the years for which the books of account or other documents are relevant are completed;
  (k) delay in allotment of permanent account number (PAN);
  (l) non credit of tax paid, including tax deducted at source;
  (m) non adherence to prescribed working hours by Income Tax officials;
  (n) unwarranted rude behaviour of Income Tax officials with assessees:
  (o) any other matter relating to violation of the administrative instructions and circulars issued by the Central Board of Direct Taxes in relation to Income-tax administration.

How to file a complaint with ombudsman?

Any person, who has a grievance against the Income-tax Department, may, himself or through his authorized representative,make a complaint against the Income-tax official in writing to the
Ombudsman.

• 
  (a) The complaint shall be duly signed by the complainant and his authorised representative, if any, and shall state clearly the name and address of the complainant, the name of the office and official of the Income-tax Department against whom the complaint is made, the facts giving rise to the complaint supported by documents, if any, relied on by the complainant and the relief sought from the Ombudsman;
  (b) A complaint made through electronic means shall also be accepted by the Ombudsman and a print out of such complaint shall be taken on the record of the Ombudsman.
  (c) A printout of the complaint made through electronic means shall be signed by the complainant at the earliest possible opportunity before the Ombudsman takes steps for conciliation or settlement.
  (d) The signed printout shall be deemed to be the complaint and it shall relate back to the date on which the complaint was made through electronic means.

What Needs Your Attention before You make Application with Ombudsman?

As per the Ombudsman Guideline 2006, no complaint to the Ombudsman shall lie unless:-

• 
  (a) the complainant had, before making a complaint to the Ombudsman, made a written representation to the Income Tax authority superior to the one complained against and either such authority had rejected the complaint or the complainant had not received any reply within a period of one month after such authority had received his representation or the complainant is not satisfied with the reply given to him by such authority;
  (b) the complaint is made not later than one year after the complainant has received the reply of the department to his representation or, in case, where no reply is received, not later than one year and one month after the representation to the Income Tax Authority.
  (c) the complaint is not in respect of the same subject mailer which was settled through the Office of the Ombudsman in any previous proceedings whether or not received from the same complainant or along with any one or more complainants or any one or more of the parties concerned with the subject matter; and
  (d) the complaint is not frivolous or vexatious in nature.
• (e) No complaint shall be made to the Income-tax Ombudsman on an issue which has been or is the subject matter of any proceeding in an appeal, revision, reference or writ before any Income-tax Authority or Appellate Authority or Tribunal or Court.

What Are the Powers of ombudsman?

1. He may try to settle with the department with mutual agreement.
2. If mutual agreement does not happen within 30 days, he may pass order of Award by passing speaking order.
3. He may pass order to give compensation of Rs 1000 apart from passing the order favourable to taxpayers. His orders are binding on the department.
4. he shall submit the report to Chairperson of the CBDT about erring official for departmental proceedings.

Read More...

Summary only...

How To Get Long Lost Refund Again?

In Assessment Year 2001-02 Mr. Abc had received a refund cheque of Rs.xxx/- but since that cheque was received after the expiry of due date, was supposed to be sent for re validation. However the cheque got misplaced by us & was not found.

We have a photocopy of the Refund Order issued by the Income Tax officer. Please guide me how can I claim the refund. Thank you.Amit.

ABC need to have patience and perseverance for getting the refund from department. But one thing is sure, he will get that refund , may be after a little wait and persuasion .Take the following procedure

1. Get one affidavit stating all facts regarding the Refund loss and that you never actually received amount of refund.2. Write a letter to A.O with copy of affidavit.3. Attach an indemnity bond for the amount of refund.
2. Wait for 15 days......then write to Commissioner of income of income in same line of as stated above.
3. After two months , write to grievance cell which generally with the Chief Commissioner of Income Tax office , stating full facts and also that you had written to other lower authorities.

matter is complex and old.You are dealing with a governmental body whose staffs are changing slowly , So you need to have patience and also that the fault lies with refund claimant.

You can also write to Ombudsman of the department if someone is appointed for your place .Visit the income tax office to know if there is ombudsman office .

Read More...

Summary only...

Refund even if Return was not filed ?I don't believe this ?

Yes , its true . There are provision under the Indian Income Tax Act which mitigates the true difficulties faced by the common
taxpayers.

Even if you have not filed Returns for six or seven years in the belief that you do not have taxable income and one fine morning , you realise that there were some TDS which should have been refunded by the I T department. But , since you did not file the Return , you did not receive the Refund.

In that case, make an application with Commissioner of Income Tax or Chief Commissioner of Income Tax u/s 119(2)(b) of the I T Act to condone the delay in filing the Return and allowing refund.

Remember, the CCIT or CIT or even the BOARD can give you relief ONLY if they find that you had really been prevented from filing return on account of some real difficulties.They will pass and order and that will be binding on the A.O

You will get the Refund without any Interest. 

Read More...

Summary only...