Why was my IT refund amount deducted?

-Blessing

It is assumed that you are not paying tax on similar income in another country.

Further, assuming you qualify as a normal resident of India, the income you receive for writing content from the Geneva organization will be taxable in your hands. The classification of income will depend on the contractual arrangements, periodicity of income, volume of transactions for which you receive income, etc. If it is established that there is an employer-employee relationship between you and the Geneva organization, the income you receive will be taxable as salary income. However, if the contractual arrangement is in the nature of a professional fee, the income received by you will be taxed as income from business or profession.

If the income is in the nature of professional income, based on gross receipts/income level – applicability of tax rates (i.e. normal or estimated), applicability of GST, need to maintain books of accounts, also need for tax audit etc. Should be For evaluation. Tax should be discharged by way of advance tax installments/self-assessment tax as prescribed by you on the above income.

For assessment year 2021-22, I have filed my ITR exactly as per AS and claimed refund but IT department has taken less than TDS shown in 26AS and paid less refund. How can I know the reason for this shortfall in refund and can I claim the balance refund?

—Dolly Moga

We assume that you have received intimation u/s 143(1) of the Income Tax Act, 1961 (Act) and accordingly the tax authorities (centralized processing centre) have computed the reduced income tax refund through A-Vis . Income tax refund claimed by you in your tax return for AY 2021-22. Generally, the details of TDS credit claimed (i.e. matched vs unmatched TDS claim details) considered by the tax authorities are mentioned in the explanatory table in the said information. You may refer to the details contained in the said table along with the calculations provided in the notice to understand the reason for shortfall in refund.

Further, to claim the balance refund, if the mistake is evident from the record, you should file an online rectification application under section 154 of the Act against the said information. You may refer to the Online Correction User Manual available on the Income Tax Portal for the purpose of filing the said online correction application. Once the correction application is processed successfully, the balance refund will be issued by the tax authorities.

If the matter is not resolved through the above rectification request, further action such as appeal, evaluation of the complaint may be taken subject to the stipulated time limit.

Parizad Sirwalla is Partner and Head, Global Mobility Services, Tax, KPMG in India.