Boost Your Tax Refund With Timely ITR Filing And Smart Regime Selection, Here’s How – News18

With the deadline for filing Income Tax Returns (ITR) fast approaching on July 31 for the financial year 2022-23, many taxpayers still have pending returns to file. One common misconception among taxpayers is that their refund is limited to the amount stated in their Form 16. However, they need to understand that they can claim a refund on any additional eligible amount as well.

Tax experts advise filing your ITR early, especially if you anticipate a refund higher than the amount in Form 16. Early submission expedites the refund process, resulting in quicker reimbursement. To maximize your refund, consider using four essential strategies.

Choosing the right tax regime is crucial to achieving the highest tax return. This decision becomes significant if you lack tax-saving investment options such as PPF, ELSS, home loan, or insurance, as paying taxes at a higher rate may not be beneficial. In such cases, opting for a new regime with a lower tax rate could be advantageous. Calculate your taxes, consider deductions, and choose the regime that allows you to save more money when filing your income tax return.

Filing your ITR within the given timeframe is mandatory for taxpayers. A delay will incur a late fee of Rs 5,000 under section 234F, applicable on income exceeding Rs 5 lakh. If the return is filed after the due date, the interest on the refund will be calculated from the day of filing, rather than from April 1.

Ensuring timely verification of your filed return is crucial within the 30-day window. Unverified returns won’t be treated as complete, delaying the refund process until verification is completed. To speed up your refund and receive it sooner, ensure prompt verification of your return. Avoid any delays in verification to ensure a swift and timely refund.

Taxpayers must carefully review all exemptions and deductions and claim them in their ITR. Relying solely on the deductions mentioned in Form 16 is not enough; consider including school tuition fees and other tax-saving expenses as well. This comprehensive approach ensures a maximum refund. Additionally, cross-checking data from 26AS and AIS is essential. Validating your bank account information is also crucial to ensure a swift refund process.