Being a taxpayer we need to file tax. Some times during the start of a
year we file tax and there could arise some difference in the tax filed and
the actual tax paid at the end of the financial year. There could be many
reasons for the difference such as start of an investment in the middle of
the year or difference in income due to other factors. So if for any
instance a tax payer has paid more tax than required for a financial year,
the government of India provides an option to apply for Income Tax
Refund.
Procedure
There is no particular application form for filling income tax; the
individual who needs to file income tax just needs to show the amounted
income tax payable and the total ITR that has been deducted.
After the tax payer has filed tax return stating that there is an ITR
refund, the Income Tax Authority will refund the extra amount in some
time with an interest of 6%. But the interest amount is only liable only if
the ITR Is more than 10% of the tax paid for that year. The date of
interest calculation for the extra 6% interest will be from the date of
filing of tax.