Income Tax Payment

When tax is short paid:

The deficiency in tax has to be paid to the department through Challan No. 280 under self assessment tax along with the interest as per the provisions of Section 234B and 234C of Income Tax Act. If the assessee’s estimated tax liability at the beginning of the year is Rs. 10,000/- or more for the financial year, then advance tax has to be paid. In case the person fails to make payment of advance tax, the department charges interest under section 234C at the rate of 1% per month for 3 months period on the default amount in each installment but for last installment interest is charged for one month. Also, an interest under section 234B is charged at the rate of 1% per month (or part of a month) up to the actual date of payment of tax liability if payment of advance tax is less than 90% of advance tax liability.

When tax is paid in excess:

While working out the tax liability for the particular financial year, if the assessee finds that tax already paid by way of advance tax or TDS happens to be more than the actual liability, then he can claim refund with respect to the excess amount of tax deposited with the government. Refund can be claimed only by filing the return of income. Once the return of income is filed, it is processed by the department of income tax and intimation under section 143(1) is sent to the registered email address of taxpayer. Along with the intimation the refund is released by the Dept.

How to check Income Tax refund status?

Refund status can be checked: 1. By logging into Income Tax e-filing website 2. On TIN NSDL website by using PAN