We think that poor worry about money and rich don’t. But trust me, when it comes to taxes, we all worry about money. A study done by Business News Daily showed that financial fears take the top seat among reasons to worry. Tax season is on and people have either filed their tax return or planning to do the same. Dealing with tax creates a lot of stress in our mind but once we are done with it, we look for some payback and our weapon in this endeavor is Income Tax Return. Filing tax return may result in healthy tax refund. Tax refunds are excellent stressbusters. Everyone wants to get a juicy refund after filing taxes because who doesn’t want to be rolling in money.
However, not everyone is lucky enough to get a cheque from the tax department. If you are expecting a tax refund, you certainly don’t want to be at the bottom of the waiting list. You must be careful while filing return if you want deep pockets. If you paid more than your share to the taxman, then you deserve a refund. All you need to do is avoid some pitfalls to get your tax refund on time:
1) Filling incorrect data in Income Tax Return:
Income Tax Return filing is a task that most of us do only once a year, so mistakes tend to happen in the process. If you made any mistake in filling your ITR form, you will not only find yourself doing the whole job again but will also get your refund late. Hence, it is advisable to use a professional service to get your tax return filed.
2) Filing return late:
If you file your tax return early, you can expect to get it processed faster by Income Tax Department (ITD). As a result, you can get your tax refund early too. Most of us wait till the last moment to file our returns but we do not want to wait for refund. Filing your tax return late can put your refund on the backburner. So don’t wait for 31st of July and e-file your return on time if you haven’t filed yet.
3) Using paper mode to file return:
E-filing has gained popularity among the masses as it is less tedious and consumes lesser time than filing on paper. E-filing service is provided by ITD as well as several private companies which can make your job easier. E-filed returns are easier for ITD to process and therefore they can give refunds quicker. It’s a good reason to e-file your tax return if you are still stuck with paper.
4) Mismatch in TDS details:
Even if you filed your tax return correctly from your end, a lot of other factors can result in mismatch of TDS data when ITD processes your return. It is possible that your employer failed to furnish correct details of TDS deducted in your Form 16. Mistakes can also happen from tax department’s end which can result in mismatch of TDS data. Whatever may be the case, it can ultimately result in your refund being stuck with the taxman for a longer period of time.
5) Late verification of ITR-V:
If you sent your ITR-V to CPC through speed post, it may reach its destination late or even fail to reach due to reasons not under your control. As a result, ITD will not be able to issue you a refund. Government has come up with a lot of methods which enable you to e-verify your return. E-verification can help in faster processing of tax returns.