This is one of the frequent questions from our users. Why my refund is -ve (or) why it shows as Tax Due when my employer has deducted all taxes? We provide this blog to help you with that.

1. Missing Deduction Information

You might have just finished entering your Salary Income details using your form 16, and you are yet to fill in your actual deductions. Kindly click on the “Deductions” tab next to Income tab and provide your deductions (investments, expenditure, donations) details. Even tough you have mentioned your Chapter VI A deductions in the Income from Salary, you have to capture them separately in the Deduction screen. This will help you to get maximized deduction.

Do you know, most tax payers do not declare all of their eligible deductions with their employer. Try our “Deductions”, to get maximum benefit.

2. Additional Income

Interest income (from bank / post office / other institutions) is taxable. You might have some Income from Interest, and you might not have furnished the same to your employer. So the employer might have deducted tax based only on salary income. Now adding interest income might show some -ve value in the refund counter. This is the tax that you owe to Income Tax department.

3. Housing Loan Deduction

If you pay housing loan, there are good chances that you might have declared the same to your employer. You might have forgot to mention the same here. Click on “Housing” tab to declare the same. Did you know, You’re eligible for a deduction on the interest paid on Housing loan up to 1,50,000.

4.80 C / 80 CCC Investments

You might have forgotten to provide investment details like LIC, NSC, PPF etc which are eligible for deduction under section 80 C. These details can be provided under the Deductions (tab) – Investment Details.

5) Expenses / Donations

Kindly check if you have provided your some of your eligible expenditure and donation details. Expenditure includes interest paid on education loan, mediclaim insurance, medical treatment for disabled dependent (dependent includes parents, spouse, children). Please make sure you provide these details under Deduction tab in the expenditure details section.

If none of them is applicable to you, and if you feel you need a help from tax professional please contact us for a free review of your tax return. Our tax professionals will review your return and see if any eligible deduction has been missed out.

Income tax department advices on common mistakes made by tax payers while filling out Income tax return.

Incorrect TDS values

a)  A major reason for difference in refund amount during processing is that the details of tax payment or TDS do not match the data available with the Department. Make sure you capture your TDS as specified in your Form 16.

b)  Corresponding deduction of tax (TDS) on interest by all banks should be correctly entered.

Personal Information

a). The name in the return should be entered as it appears in the PAN card, to the extent possible.

b). Address should be correctly filled with correct city, state and PINCODE for faster and accurate delivery of communication from the Department.

Faster Refund

For faster credit of Income Tax refunds, correct bank account number and MICR code in the return should be mentioned. In case of any mistake in MICR or Bank Account number, the refund will not be credited and a canceled cheque showing correct particulars would be required to be submitted to CPC for correction in bank account number or MICR code.

Calculation of Interest

Mistakes happens while calculating interest 234 A, B & C. These interest might be applicable to Individuals who did not pay their advance tax at the correct time / did not update their employer about other taxable income, other than salary.

Non taxable Income

Not all of the incomes are taxable. Some of them are completely tax exempt and other have some standard deduction associated with it. With out this you might end up paying more taxes.

It is advisable to seek a help of a efiling websites like RoboTax.in to prepare & submit your tax return. This will ensure your tax return is error proof and also gives you peace of mind from tax filing issues.

Here is another tax season and everyone of us would be interested in knowing our refund. Hence we decided to provide you with an refund calculator, using which you can determine the refund you might be receiving this year.

Refund Calculator:

Income is taxed at 3 different slabs for senior citizen residents, female residents and Others. So we have given 3 calculators and you can make use of the respective calculator to calculate your refund.

Due date for filing tax return : on or before July 31, 2010.

This calculator is applicable for FY 2009 – 2010

Disclaimer:

This calculator is to help you find out your personal indicative tax liability based on your estimated income from various sources, eligible deductions and Tax Deducted at Source. It may not cover all scenarios of Income, Exemptions, Deductions, etc. You are advised to use this at your will and to consult a tax consultant if you have a different scenario. There might be other interest / penalty applicable depending on your scenario.