The processing time is long in the Income tax department. In 2021, it was 26 days. In 2022, the time was 16 days. In 2023, the department has plans to reduce the time to 10 days. The income tax department launched the AIS app for viewing annual information statements and taxpayer information summaries. The app provides information about TCS, TDS, dividends, interest, and share transaction details. The blog imparts information about tax refunds. The readers understand the eligibility for a refund, how to check the refund status and changes with the processing time.
Eligibility for refund:
The tax refund is by direct transfer or through cheque. The department will notify the taxpayer through message till the refund date. The ITR status redirects the payer to the related page. After checking the PAN number, captcha code, and OTP, the screen will show the details of the refund amount. The different types of refund status mentioned on the website are as follows: not determined, refund paid, refund failed, refund date expired, the cheque encashed, refund returned, and refund adjusted against the outstanding amount. If there is a delay in the repayment, the taxpayer asks the centralized processing centre regarding the income tax payment.
The following cases are eligible to claim a refund from the IT department:
The assessed amount is higher than the actual amount of payment. The amount is treated as tax paid in advance.
If the TDS is higher than the tax payment. The TDS from dividends, debentures, salary, and interest on securities are considered for this case.
If India and a foreign country charge tax two times, the taxpayer is liable to get a tax refund.
If there is an error in the calculation, the taxpayer is liable for a refund.
After doing deductions, if the tax payment is a negative figure, the assessee gets a tax refund.
The investments of the taxpayer are declared late after-tax payments. In such cases, the taxpayer gets a tax refund.
How long does it take to get a tax refund?
The tax refund is the internal process of the IT department. The tax refund is after 7 to 120 days. The average time after the e-verification of the taxpayer is 90 days. From 2021, the tax department is enabling a system to speed up the processing time.
Reduction in the processing time of IT refund:
The tax processing time was 26 days in 2021. The processing time was 16 to 17 days in 2022 to 23. The department is focusing towards 10 days of processing time. The refund for the period from April to August was 72,215 crore. The total amount distributed to individuals was 34,406. The tax amount distributed to companies was 37,775. The collection of tax for the period from personal and corporate tax go as 6.6 lakh crore.
The role of chartered accountants in getting tax planning:
Chartered accountants work in cities where higher salaries and profits are earned. They have high responsibility and work for long hours. Chartered accountants help clients with forensic audit, merger and treasury issues. The importance of chartered accountants is explained in the financial operations below. Chartered accountants learn communication, people skills, leadership qualities and teamwork after getting experience in corporates.
A chartered accountant files the tax returns and provides advice to the client regarding investments and deductions.
Chartered accountants handle high revenue and complex auditing tasks for financial information.
Chartered accountants collect ongoing and current information on tax laws.
A chartered accountant prepares the final accounts as per the generally accepted accounting principles. A chartered accountant creates a bridge between the company and the general public.
The auditor is responsible for the goodwill of the company. The public creates a connection between financial health and goodwill.
Chartered accountants audit the relevant information for GST and income-tax-compliant processes.
Tax planning is a powerful tool to implement provisions. The four types of tax planning are short-term, long-term, permissive, and purposive tax planning.
Accounting standard 113 deals with fair valuation of business assets and liabilities. Chartered accountants are well equipped to do valuation of assets and liabilities.
During the corporate merger, to check the feasibility, companies initiate the process of due diligence. Accounting standard -240 explains the investigation from monetary statements. Chartered accountants conduct due diligence in companies.
Chartered accountants help start-ups by implementing strategic ideas and tax plans.
Chartered accountants help clients in legal matters.
Conclusion:
Bringing tax payments under technical process helps identify the problems. Reduction of time for refund requires more auditors in the IT department. Improving the tax system makes tax collection and investigations easy. Tax-related information motivates chartered accountants. Apart from compliances and tax laws, general awareness and technical knowledge are essential to outperform as an auditor. Chartered accountant’s job is difficult as they learn and apply the tax laws as per the recent changes. But, the past and present laws make the tax subject an interesting one. RR Academy prepares students with practical knowledge to perform well in corporate jobs.
