If your colleague has mistakenly deposited an excess amount of ₹1,00,000 instead of the required ₹50,000 for the updated return for AY 22-23, here are the steps to claim a refund or adjust the excess payment:
1. Claiming a Refund
Your colleague can claim a refund of the excess tax paid under Section 237 of the Income Tax Act. Here's how to proceed:
File Income Tax Return (ITR): Ensure that the ITR includes the correct taxable income and reflects the excess payment. The excess amount should be shown in Form 26AS.
Verification: The refund will be processed by the Income Tax Department upon verification. It’s essential that the excess amount is correctly reflected in Form 26AS.
Refund Process: Generally, once the ITR is filed and verified, the refund process is initiated by the department. Your colleague does not need to file a separate claim for refund; it will be automatically processed if there is an excess payment.
2. Adjusting Excess Payment Against Future Liabilities
If your colleague prefers to adjust the excess payment against future tax liabilities instead of claiming a refund:
Carry Forward: The excess amount can be adjusted against future tax payments. This means that when filing taxes for the next assessment year (AY 23-24), your colleague can deduct this excess amount from any tax due.
3. Important Considerations
Ensure that all necessary documentation is in order and that the return is filed before March 31, 2025, to avoid any penalties.
If opting for a refund, keep track of any communication from the Income Tax Department regarding the status of the refund.
4. Filing Deadline
Make sure to complete these steps before the deadline of March 31, 2025, to ensure compliance and avoid any issues with tax filings.
By following these steps, your colleague can effectively manage the excess payment and ensure that their tax obligations are met correctly.