Section I: Income Tax and You

• Ques: Income Tax Refund
• Ans: Key points:
  • If more tax has been deducted from your income, then you are entitled to get a refund cheque from the income tax department.
  • Time to get such refund is unpredictable, so it is suggested not to overpay and to do your calculations wisely. The interest paid by the income tax department on your refund is very low, so it is better to invest the money in higher return investment than waiting for refund.
  • If you e-file your return, then you stand a chance of getting faster refund.
  • Refund follow-up is expensive and tedious, so it is advisable to avoid such situation of refund.