Where is my Tax Refund?
The income tax department usually processes a refund between 20 and 45 days after processing the ITR. In case the refund has been delayed, then you will get 0.5% per month interest on the amount due as refund with refund calculation done from 1st April of the Assessment Year till the date on which the refund will be granted.
You can check the income tax refund status in 2 ways:
If you have already filed the ITR and are waiting for the tax refund, just check that the following should not be the reasons of delay at your end:-
1) ITR not verified: Filing an income return is complete only after the ITR is verified. Verification of an ITR can also be done electronically. Verification needs to be within 120 days from the date of filing to ensure that the return gets processed and the tax refund is released.
2) Bank Account not validated: Just mentioning bank account details on the income tax portal and in your ITR is no longer enough to get the refund amount credited to the bank account mentioned as the default account. You need to validate that bank account and for that the mobile number and email ID mentioned as the primary contact details on the income tax portal should match with those mentioned in the bank account.
3) Adjustment of Past Dues: If there are any past unresolved tax payable claims for past assessment years that are unresolved, refunds are released only after adjusting the past dues.
4) Contact information not updated: If you fail to check the intimations and provide replies within the time limit given for replies, it will be considered that you have nothing to explain and agree with the decision of the income tax Department. So, your mobile number and email ID, that you use regularly as primary contact details, should be updated in the income tax portal as well as in your ITR.
(Contributed by Kritika Saini, Relationship Manager, Team Arjun, Humfauji Initiatives)
Tech Revolution in Estate Planning – Need of the Hour
We all know how important it is to plan in detail how your assets and wealth passes on to your loved ones after you. And this needs to be done at the earliest, when one is healthy and well. But when it comes to estate planning, then we are all alike: ‘it is a lengthy, tedious and time-consuming process; hence, not my cup of tea’.
That is why there is a definite need for a technological revolution in estate planning.
Today technology has been a key contributor and a positive disruptor in every industry. In estate planning too, there are areas where there is a need to embrace technology and digitalisation to break down some serious obstacles and bring in the much-needed efficiencies in the system. Our wish list for this is as below:-
1) Digital Will: It should have two components – digital signature on the Will, and electronic witnessing of the Will. The digital signatures ensure authenticity but are disallowed for wills, trusts, and immovable properties in India. The physical presence of the witness for witnessing the Will should be replaced with the electronic witnessing of the will.
2) Online Will Probate: Probate is a copy of a will certified under the seal of the court. It is a lengthy process due to which many individuals avoid filing for probate, which is illegal and sometimes leads to family disputes. It is important to streamline the filing process and make it digital to the extent possible.
3) Remote/Online Notarisation: While notarisation is not a necessity for Will, but there are documents like power of attorney for which it is mandatory. Therefore, there should be an option for video-based notarisation to smoothen the process and make it as less physical as possible.
Though we have several digital estate solutions to transfer the digital assets through online tools in a legal way, such tools are limited to digital assets only. It is time technology permeated to most of the estate planning and execution process.
(Contributed by Ayushi Gupta, Associate Financial Planner, Team Arjun, Humfauji Initiatives)
Form 12BBA Can Make Life Simpler for Seniors Above 75
If you or an immediate family member is over the age of 75 years, income tax filing may be a tedious task.
Help is here now. From this financial year onwards, senior citizens aged 75 years and above, who receive income only from pensions and fixed deposits, can just submit a Form 12BBA with their scheduled bank where they receive their pension, and be done away with it. This is as per a new rule 26D mandated by the Central Board of Direct Taxes (CBDT).
Form 12 BBA is a self-declaration that contains information like total income, details of deductions under sections 80C to 80U, rebate available under section 87A, and a declaration confirming receipt of income only from pension and interest. After submitting the declaration, the bank will compute the total taxable income. If the taxable income is nil, then the bank will not deduct anything from your pension or FD incomes. If needed, the bank may also deduct the appropriate tax from the total income and that’s it.
Once the bank completes all the formalities, then you do not need to file tax for that particular year. Form 12BBA has to be submitted with your specified bank every year to get the exemption from filing tax. We suggest this to be done early in a financial year so that the bank does not deduct the TDS if there is no tax due overall – otherwise an ITR will have to be filed to claim any excess TDS paid.
(Contributed by Shaheen Akhtar, Associate Financial Planner, Team Prithvi, Humfauji Initiatives)