No one likes to refund money - even The Income Tax department
A demand since 2009 - more than a decade..
This has been going on for quite some time, almost 14 years. This year, I had some refund because of leave encashment, which was not considered by my previous employer. If you do not know, then until last year, leave encashment was exempted under Sec 10 (10AA) of the Income Tax Act upto ₹3 lakh till the last financial year, i.e. March 2023. This was not changed since 2002 and the government increased the limit effective Apr 2023 to ₹25 lakh and even I did not know about this, when I was filling my returns for last year. And this change is applicable for non-government employees, remember, there are different taxation conditions between different sectors and employers. And there is also a specific calculation on the amount considered for exemption.
You can find all details here : https://cleartax.in/s/leave-encashment-tax
If you do not claim it, then the tax department will also not bother to consider it and refund you automatically. They will swiftly consider what you submit (Everyone likes to take the money!!) and you can't change it once you submit. It was known to me during a casual discussion with some friends, and I was so happy to discover it, as it was a significant amount. But then they are not very happy to refund me so soon, because they have been claiming an outstanding tax demand since 2009 for the year 2007.
Man, who remembers all these tax calculations over a decade !! So this was for the financial year 2005-06, or assessment year 2007 and they claimed this demand in 2009. But they sent the demand to me in 2022. Back then, there was no electronic documents, except the return summary that we would print and sign and send by post for the final processing. Thankfully, I still have those paper documents with me, since beginning of my career, and when I went through those documents, I could not find any reason for this tax demand.
Every time they send the demand, we have to take action in 21 days to respond to their demand, by logging into the site and filling the online response. Otherwise, they will move ahead and take the money, if you forget to respond in 21 days.
I have already submitted my response twice, but check out that bold sentence carefully : If you have already confirmed the demand for adjustment or paid the demand..... So this is not applicable if are fine with the demand for adjustment or paid, but not disagree !!
So for the third time ( or every time they send it), I have to say the same. It's simple and straight : Disagree with the demand. We have to provide a remark on why I disagree and in this case its quite obvious - I have asked the same earlier, but have not been provided with an answer. Please provide the details on how this demand was arrived.
I am not sure, if the AO (Assessment Officer) is still in job, but if they had the details, then they should have provided the answer to me by now. There is no response from the AO as per their records. Many people have got their refunds way back, but in this case it seems they are intentionally holding it. So fingers crossed, and wait and watch.
Have you ever faced similar situation ? And ever claimed a leave encashment? And I must also tell you that, I have also claimed the LTA this year only during return filing, because, I traveled in the last week of March, so it was not possible to submit to the Employer by their deadlines. Not sure, if that also has some contributions to the release of refund, but they are not saying anything or not even confirming the amount they agree to refund. You can't see the amount processed anywhere, until its released and come to you - something to learn in Personal finance 😜
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Everyone seems to hate refund of money
And like to take :)
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Wow,that's horrible. I don't know if I could even get past how weirdly it is worded. Thankfully, I have my brother in law do my taxes each year and he has his workers check it over, so not much slips through the cracks. Them coming back 15 years later and saying there is an issue is pretty ridiculous.
And this is the third time I am telling them the same : show me why you are demanding this. Ideally it should be backed by some data or evidence.
I totally agree!
They are so hilarious . ohh well money is 💰 and that is a devil thing..So for me even though they compute taxes automatically I double check it manually if they are charging the right amount..
Their computation is based on what we provide and its all automated, so if you forget to claim something, then its your loss only.
Haha, same problem but for us it is our responsibility to check because they will not notice us about our refund ..
This is true that No one likes to refund money. Maximum people hates this process
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What you say is very true, dear friend @sanjeevm, there is no one who likes to return money. It's good that you received this refund.
Have a beautiful afternoon
Tax needs to be claimed, or the just keep it. Yet they demand more than necessary. So you have to get a refund, its so complicated !
It is incredible that a refund claim lasts more than 14 years. I imagine that they do not want to cancel it since it is a long time that has passed.
Everyone loves money 😜😜
https://twitter.com/jewellery_all/status/1729949407393747076
🤨😣 oh my, that is a long time and i cant believe how they handle it..
I bet they 'save' lots of money this way. perhaps they are hoping ppl will just die before that have to pay them.
Glad to know you are a responsible tax payer, and a good example.
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So much process! Taxpayers are having all those stresses.
I had never heard that how long a refund of a tax payment takes, almost 10 years waiting and still nothing
https://twitter.com/JunaidFazal1111/status/1730130258161279105
https://twitter.com/JunaidFazal1111/status/1730131954220306942
Practically speaking it's a fairly simple process...if the efficient AI software was to do all the calculations and initiate refund...but probably just to hold it back for reasons better known to them, there are plentiful delays unnecessary created causing a lot of hastle to the taxpayers.
Es muy bueno que un país serio y potencia mundial cobre impuestos , lo malo es que se excedan en el cobro y no haya devolución de las Rupias , y más cuando se trata de un empleador.
It's just like that once these kind of institutions take money and never return it then you have done a lot of good and hard work then you got your money back after a long time. No, it is not like this in our country at all, they have to collect tax even if they are wrong, they collect it and never refund the money.
https://twitter.com/lee19389/status/1730272320630210760
#hive #posh
Here in our country, I never heard of such refunds. If there is, it is surely difficult to get it back.
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Hi dear @sanjeevm please raise a grievance request on the portal providing all the details. Actions raised on grievance is much faster and should help you get your refund. Regards
I did raise grievance but they were holding back because they were claiming some outstanding amount , and good news is that, finally now they have paid.