Filing of Income Tax Return The refund process begins when a taxpayer files their Income Tax Return (ITR) and declares that excess tax has been paid. The return must include accurate details of income, deductions, and taxes paid like TDS, advance tax, or...

Meaning of Scrutiny Assessment Scrutiny under income tax refers to a detailed examination of a taxpayer’s return by the Income Tax Department. It is conducted under Section 143(3) of the Income Tax Act. The objective is to ensure the correctness of income, deductions,...

Meaning of CPC CPC stands for Centralized Processing Centre, a division of the Income Tax Department. It is responsible for processing income tax returns filed by taxpayers in India. Located in Bengaluru, the CPC handles electronic return processing and related...

File Income Tax Return (ITR) A tax refund can only be claimed by filing your ITR for the relevant financial year. Declare total income, tax deductions, and all taxes paid including TDS, advance tax, and self-assessment tax. Ensure that the excess tax paid is reflected...

Meaning of Income Tax Refund A refund arises when the tax paid is more than the actual tax liability for a financial year. It includes excess TDS, advance tax, or self-assessment tax paid by the taxpayer. The excess amount is refunded by the Income Tax Department. It...

Using Form 26AS Form 26AS shows all TDS deducted and deposited against your PAN. It includes details of salary TDS, bank interest TDS, and property transaction TDS. The form is available for each financial year. It helps verify whether the deductor has deposited TDS...

At the Time of Making Specified Payments TDS is applicable when a payment is made under specified heads such as salary, rent, interest, commission, and professional fees. The deduction must be done at the time of credit to the payee’s account or actual payment,...

Basic Concept of TDS TDS stands for Tax Deducted at Source, a mechanism introduced to collect tax at the very source of income. It ensures regular inflow of revenue to the government and reduces tax evasion. The person making a payment (called the deductor) deducts a...

Basic Tax Exemption Agricultural income is generally exempt from income tax under Section 10(1) of the Income Tax Act. Income earned from agricultural land situated in India is not taxable. This exemption applies to individuals, HUFs, firms, and companies. The land...

Definition and Nature of Capital Gains Capital gains arise when a capital asset is sold or transferred at a profit. The profit is classified as income and is taxed under the head “Capital Gains.” Capital assets include property, stocks, bonds, mutual funds, gold, and...