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  • Category: Tax Planning

    How to get refund of our tax ?

    Want to get a tax refund? Looking out for the procedure to do so? On this page, check out advice from experts?.

    Few days are left for IT Return submission. I am a salaried person and doing some private job also. From both of my Job places HR has deducted TDS . Throughout the year whenever i have visited restaurant, shopping mall and while paying electricity bill I have paid tax also. While paying this all bill I have to pay some tax amount also. When I get those amount/salary from my employee, at that time also he deducts tax . I have paid tax two times for one single thing. Is there any way to take back all other deducted tax?

    Kindly suggest .
    Thank you !
  • Answers

    6 Answers found.
  • Very interesting query. We have different types of taxes in our country. You might have paid service tax in restaurant etc. You also might have paid sales tax also when you buy an item. Now these taxes are all been consolidated and put under GST. Now you will be paying only GST which will be dealt by GST deptt.

    Now coming to income tax this is a separate tax and has nothing to do with GST. When you are doing a job your employer will deduct some advance tax from your salary (TDS) and at the end of the year you will have to shell out the remaining tax. If you have paid more income tax you will get refund from IT deptt once you submit the IT return.

    There is no connection between GST and income tax and you can not adjust them with each other.

    With Govt going in for various corrective measures and improvements in systems and procedure may be one day there will not be any income tax in this country and only GST will be there. It may appear to be a wishful
    thinking today but economic progress and increase of GDP can make it possible in future.

    Knowledge is power.

  • GST is Goods and service tax. If you are in a business of purchasing and selling,when you sell some product you have to pay tax for that sale. Yo may collect it from your customer or you sell at a rate inclusive of taxes. In any case you have pay that tax amount to Government. You may purchase some inputs for making the output. Here also you will pay tax. Here what ever you are paying tax for the inputs you can deduct from the collections you have made for selling the product and difference only you can pay to government under a scheme called CENVAT.

    But in your case you are not in business and you are a salaried employee and you have pay income tax for the income you are getting. There is no relation between income tax and GST. In the present system you can't do anything in that particular cases. But while calculating income tax some perks you are getting from your employer are exempt from income tax. If you consult a tax consultant he will advise you on these eligibilities. You can reduce your tax liability by following that.

    always confident

  • Whatever tax you are paying in restaurants and other places is being deposited by those establishment to the Govt and presently that is known as GST. You have no way to get it back or to get it adjusted somewhere else.
    Coming to your income tax this is the tax levied on your income and you are entitled for various tax exemptions like children education allowance, tax on saving bank interest upto 10000, medical reimbursement upto 15000 etc.
    There are other deductibles which are applicable on let out house and certain exemptions on dividend income from mutual funds etc.
    These things you can claim while submitting your income tax return and you may get some refund accordingly.
    You can not adjust GST paid by you to restaurants against income tax.

    Thoughts exchanged is knowledge gained.

  • This is an irony. It is a painful fact also. That is why the wise always cry for changing the tax administration and taxes. There are advocates for abolishing income tax and implementing only expenditure tax. That means you pay tax only on the money spent.

    The other view is tax income at a fixed percentage pro rata or at slab rate . Nobody should be exempted. There should not be any tax other than income tax.

    Very recently when the demonetisation was implemented, there was a request for abolishing income tax and making only transaction tax. That needs that every transaction should be non-cash and through banking channels only. This is an improvement of expenditure tax.

    Unfortunately in our country, the individual bears the burden of umpteen direct and indirect taxes.
    Personally I feel sense in the 'tansaction tax' view.

    Unfortunately for now there is no relief for the issues that the author has raised in this question. The smart 'recover'the tax paid by any and everything you can 'vasool' from the government. So what you can do is 'vasool karo' all the legally and morally permitted reimbursements, aids and benefits from the government using all the facilities available. I would suggest that always stick to use only the honest and legally right and permitted methods.

  • As you have IT Return submission few days ago.You are a salaried person and doing some private job also. From both of my Job places HR has deducted TDS . Throughout the year whenever you have visited restaurant, shopping mall and while paying electricity bill you have paid tax also. While paying this all bill you have to pay some tax amount also. When you get those amount/salary from my employee, at that time also he deducts tax. You have paid tax two times for one single thing. Yes you can get the refund of the deducted tax.

    You can claim tax refund if you have paid more tax than what you are liable to pay on your income as you have said above you have paid the tax deduction two times you can claim for tax refund.

    To claim a refund you do following things :
    >> Firstly you have to submit your income tax return (ITR) through the ITR website.
    >> Verify your ITR-V online using your net banking account or using Aadhaar
    >> Refunds are automatically processed in ITR if tax deducted is more than tax payable
    >> You can choose to receive refunds through two modes – electronic clearing system (ECS) or cheque or demand draft.

  • Let's explain the tax regime in India. Under Government of India thee is Ministry of Finance (MoF) and under MoF there are 2 divisions. One is Central Board of Direct Taxes (CBDT) and other is Central Board of Excise and Customs (CBEC).
    Now CBDT deals with direct taxes i.e. Tax on Salary, Pension, Income from house property, incone fro business and profession capital, gain and other sources of income of an Individual or other entities.
    While CBEC deals with indirect taxes which we should now called GST which includes Excise, Customs, VAT, Service Tax, etc.

    Now direct tax is on income which you earn directly by working and hence pay tax on the same. While indirect tax is a tax which you pay on the expenses you do.
    You got to understand that your expense is income for another hence you will not be claiming refund of taxes paid to someone else. You will pay taxes on income which you earn. Your salary is an expense for your employer but income for you.
    You can claim refund only in case your employer has deducted more tax than it actually should.

    Taxes which are indirect meaning the one you pay as cost of product because the same get charged to as they are inbuilt in the product or service which you have availed.
    On the other hand Direct tax is what government collects from your income through your employer in form of TDS.

    If employer deducts more TDS than it actually should, then only you can claim refund by filing your tax return.

    Live before you leave.

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