An income tax is a tax that states tax on income generated by businesses and people within their field. By law, taxpayers must record an income tax return periodically to manage their tax responsibilities. Income taxes are a reference to revenue for governments. They are used to finance public services, pay government obligations, and produce goods for citizens.
Most people seem to think that filing tax returns is optional and therefore dismiss it as unnecessary and burdensome. As we will discuss, this is not a very healthy outlook on tax-filing. Filing tax returns is an annual project viewed as a moral and social duty of every loyal citizen of the country.
It is the source for the government to restrict the amount and means of expenditure of the citizens and presents a platform for the assessee to claim a refund, among other methods of relief from time to time. If you have any issues in income tax you can clarify by visiting Income tax consultants in Hyderabad.
How Much Of A Refund Is Due To A Taxpayer?
When a taxpayer requires a refund in his return of income, the tax department rules such return, and the taxpayer would receive an intimation from CPC under Section 143(1) which will confirm the quantum of the refund that the taxpayer is qualified to receive. The refund can either match with, or it could be higher / lower than what is required in the return of income. This refund amount is what the taxpayer would ideally get from the income tax department;
Once the appeal authorities remove the additions, the income tax officer, by an order, defines the refund due to the taxpayer. This is what the taxpayer will be qualified to receive.
Once the refund is defined, the same will be processed by the tax department.