Investing in shares gives dividend. If the total income of a taxpayer is less than the exemption limit, then TDS can be deducted on it. In such a situation, it is necessary for the taxpayer to claim refund. He will get the TDS money back only after the claim. The question is what is the method of claiming refund?

Jain said that under section 139 of the Income Tax Act, if a person’s total taxable income exceeds the exemption limit before claiming deduction, then he is required to file Income Tax Return (ITR). In the old regime of income tax, this exemption limit is Rs 2.5 lakh for a person below 60 years of age. It is Rs 3 lakh for a person aged 60 to 79 years. For a person aged 80 years and above, i.e. super senior citizens, it is Rs 5 lakh.

In the new income tax regime, the basic exemption limit is Rs 3 lakh for all people. If a person’s income is less than this limit, then it is not necessary for him to file income tax return. However, he can voluntarily file ITR. If tax has been deducted from your income, but your total income is less than the exemption limit, then you will have to file ITR for refund of TDS.

He said that we can easily understand this with the help of an example. Suppose a person has shares of a listed company, from which he has received a dividend of Rs 70,000 in the last financial year. TDS of Rs 2,500 has been deducted on this dividend income. But, his total income is less than the exemption limit. In such a situation, he will have to file income tax return for refund of TDS.

There is a fixed rule for TDS on dividend income. If a person receives more than Rs 10,000 dividend from a company in a financial year, then TDS will be deducted on it. If that person wants that TDS should not be deducted on his dividend income, then he will have to submit Form 15G to every company from which he is expected to receive dividend. Form 15G is for a person whose age is less than 60 years. If the person is more than 60 years of age, then he will have to submit Form 15H.

After submitting this form, the company will pay dividend to the person without deducting TDS. Taxpayers should submit this form at the beginning of the year. This will prevent the company from deducting TDS on their dividend income. It is important to keep in mind that you have to submit this form to every company from which you expect to receive dividend.

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The process of filing income tax returns for the financial year 2023-24 and assessment year 2024-25 has started. You can file ITR till 31 July 2024 without penalty. It is necessary for a salaried person to have Form 16 to file ITR. Form 16 is issued by the employer. Through this, filing income tax returns becomes easy.

It is necessary to issue Form 16 by 15 June

Form-16 issued by the company contains information about the gross income of the taxpayers as well as net income, TDS deducted from income. In such a situation, it becomes very easy to file income tax return through this form. According to the rules of the Income Tax Department, every company is required to issue Form-16 to its employees by June 15, 2024. Most companies have issued Form 16 to their employees.

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Form-16 has a total of two parts. Part A contains information about the tax deducted on income on a quarterly basis. Keep in mind that the company has issued both parts of Form-16 to you. Along with this, both parts should have the TRACES logo, which ensures its authenticity.

Part B contains the details of the total salary received by the taxpayer from the company in that financial year. Along with this, information about deductions and exemptions is also recorded in it. After this, you can calculate your tax liability by calculating the net salary from here.

Match Form 16 with Form 26AS

If Form-16 has been issued to you by the company, then first of all it is necessary to match it with Form 26AS. If there is some difference in the data given in both, then you should inform your company about it. After this, the employer will check the TDS data and correct it. If you do not do this, you may also get an income tax notice later. If the information of Form 16 matches with Form 26AS, you can file income tax return.

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Every income tax payer should take utmost care while filing his income tax return (ITR Filing). Before filing ITR, it is not only necessary to collect all the necessary documents, but it is also necessary to check them thoroughly. Because wrong information recorded in any document can get your ITR cancelled or delay the refund.

Form 26AS is also one of those important documents, which is necessary to check before filing Income Tax Return (ITR). Form 26AS should be matched with Form 16/16A before filing the return. Make sure whether the money deducted as TDS is included in Form 26AS or not.

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Form 26AS gives information whether the TDS deducted by the company has been deposited to the government or not. It contains details of tax deducted from different sources of income of the taxpayer. These include details like tax deduction at source (TDS), tax collection at source (TCS), payment of advance tax or self-assessment tax, regular tax, refund. On the other hand, Form 16 contains complete information about the tax deducted from salary. Form 16A contains information about TDS deducted on income other than salary.

Therefore, matching is necessary.

Many times it happens that the information given in Form 16 does not match with the information given in Form 26AS. This happens due to the wrong information recorded in Form 26AS. In such a situation, if you file ITR with wrong information without matching both, then while it can cause financial loss to you, there is also a risk of your ITR being cancelled. If the information is wrong, then it is very important to correct it.

If your company or bank has made a mistake in depositing the tax with the government with your PAN number then you have to approach your company or bank to deduct the tax. You have to ask the company or bank to revise the TDS return. Once you file your TDS return with the correct details, your Form 26AS will show the correct information.

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Nowadays people are rapidly changing jobs to increase their income and experience. This is a very common practice. In view of the increasing trend of changing jobs, many taxpayers have more than one Form 16 submitted to them by different employers. In such a situation, when it comes to filing tax returns, they start getting worried that how to file their ITR with more than one Form 16!

If you have two Form 16

First and foremost, don’t stress yourself out. Having more than one Form 16 does not mean that you cannot file your ITR on your own. There are three ways to file ITR with more than one Form 16. Let’s start with the simplest and easiest way.

Use tax filing portals Various tax filing websites provide the facility of ITR filing at a nominal cost. Some even provide this service for free. You go to such portal and after registering yourself, create a login ID. After this you have to upload both Form 16. If you have only physical copies of Form 16, you can manually fill in the details of each. After that click on submit button. The online portals will do the necessary calculations of your income, exemptions and deductions on their own. This process will not take much of your effort and your work will be done easily in no time.

Request a Consolidated Form 16 from your current employer

There is another easy way of ITR filing if you have changed two jobs. Demand to link Form 16 of the previous employer with that of the current employer. This way you will have only one Form 16 and you can file your ITR with a single Form 16 like any other employee.

When you change your job in the middle of the financial year, fill up Form 12B and submit it to the new employer. It discloses your past income during the year. Though it is not mandatory to fill Form 12B, but it will be more convenient for you if you fill it. Your new employer issues a consolidated Form 16 by counting your previous income. Ensure that the details filled in Form 12B, including PAN and TAN of the previous employer, tax deducted at source by the previous employer, PF deducted, break-up of previous salary and professional tax, are all included and correct. Keep in mind that it is your responsibility to fill Form 12B, not your previous employer.

Can do calculations yourself

If you are good at tax counting and have proper understanding of taxation then you can do it yourself. Once you arrive at the total taxable income, which should include not only your salary but also income through dividends, interest from your bank FDs and accounts, as well as other sources of income, then your tax Liability can be calculated. Now deduct the taxes already paid by you as TDS as per the document entered in Part-A of Form 16B. Cross-check this figure with the details available in Form 26AS and Annual Information Statement or AIS. If they match then go ahead and file the return and then verify the same.

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Know how to get TDS deducted back

If TDS has been deducted more from your salary, then it can be withdrawn in two ways. First, mention this in your income tax return. After this the Income Tax Department will check it and refund your excess deposit. On the other hand, under the second method, you will have to fill Form 15G to withdraw TDS. Form 15G has to be filled and submitted to the bank. In this way your deducted TDS will come back to your account.

How to Check Refund Status

For TDS refund to come quickly, it is important that you file your ITR on time. The sooner you file the return. As soon as the refund process will start. To check Income Tax Refund Status, first you have to visit the official website www.incometax.gov.in. After that enter your User ID and Password. In the page that will open, you will see the option of e-filing. In this select Income Tax Return. After that you click on View File Returns. Your latest ITR details will be displayed on the computer screen.

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