1) Recovery of tax refers to collecting unpaid taxes from a taxpayer. This can be done by deducting the amount from future tax refunds owed, selling the taxpayer's property, or requiring another person or entity that owes the taxpayer money to pay the tax amount instead. 2) A tax refund occurs when a taxpayer has paid more in taxes than what they actually owe. Taxpayers can claim a refund by filing an income tax return showing they overpaid. 3) To check the status of an income tax refund, taxpayers can log into the income tax e-filing website and view details of their filed return, or check the TIN NSDL website 10 days after the refund was sent to their bank. Both

1. SRI KRISHNAARTS AND SCIENCE COLLEGE
DIRECT TAX ASSIGNMENT
BCOM PA (B)
Roll No : 18BCO632 -18BCO641
Unit –V
Topic: RECOVERY OF TAX AND REFUND

3. •Revenue
•Consumption and production
•Domestic industries
•investment
•Economic growth
•Backward regions
•Prices on products and services
TAXATION
Objectives of

5. INCOME TAX
• An income tax is a tax imposed on individuals or entities
(taxpayers) that varies with respective income or profits (taxable
income).
• Income tax generally is computed as the product of a tax rate times
taxable income.
• The tax rate may increase as taxable income increases (referred to
as graduated or progressive rates). The tax imposed on companies
is usually known as corporate tax and is levied at a flat rate.

6. • Taxes are a source of revenue for governments.
• They are used to fund public services, pay government
obligations, and provide goods for citizens.
• Reduce gap between rich and poor
• Reduce consumption of demErit goods
• Control inflation
• Balance of payments
PURPOSE OF INCOME TAX

7. INCOME TAX ACT 1961
• The Income-tax Act, 1961 is the charging statute of Income Tax in
India. It provides for levy, administration, collection and recovery
of Income Tax. The Government of India brought a draft statute
called the "Direct Taxes Code" intended to replace the Income Tax
Act,1961 and the Wealth Tax Act, 1957. However the bill was later
scrapped.

8. THE INCOME TAX ACT 1961
• The Government of India presents finance bill (budget) every year in the month
of February. The finance budget brings various amendments in Income-tax
Act,1961 including tax slabs rates[2]. The amendments are generally applicable
to the next following financial year beginning from 1 April unless otherwise
specified. Such amendments become part of the income tax act after the approval
of the president of India.
• "The Taxation Laws (Second Amendment) Act, 2016" is an amendment Act,
No.48 of 2016, to Income-tax Act, 1961 and The Finance Act, 2016. It was
passed during the 2016 Winter Session of Indian Parliament.[3] The Taxation
Laws (Second Amendment) Bill, 2016 was passed in Lok Shaba as a money bill
on 29 November 2016 enabling people to declare their undisclosed incomes after
Indian 500 and 1000 rupee note demonetisation.

9. IMPORTANCE OF COLLECTION OF
INCOME TAX
• It is through the taxes we pay that the government can perform civil
operations.
• In other words, without taxes, it would be impossible for the
government to run the country.
• Income tax is one of the biggest sources of income for the Indian
government

10. WHAT IS RECOVERYOF TAX ?
• Recovery of tax from another person, who holds or may
subsequently hold money for or on account of such person, to pay
to the credit of the Central or a State Government. Detention of
any movable or immovable property belonging to such person,
until the amount payable is paid.

11. WHAT IS REFUND OF TAX ?
• A tax refund is a reimbursement to a taxpayer of any excess amount
paid to the federal government or a state government. Taxpayers
tend to look at a refund as a bonus or a stroke of luck, but it really
represents an interest-free loan that a taxpayer makes to the
government. In most cases, it is avoidable.

12. INCOME TAX REFUND
• Refund arises when taxes paid are higher than your actual tax
liability (including interest). It could be in the form of advance tax,
self-assessment tax, tax deducted at source, foreign tax credit etc.
Given below is an illustration showing when and how a refund
arises.

13. INCOME TAX REFUND PROCESS

14. HOW TO CLAIM INCOME TAX REFUND
Process to claim Income Tax Refund:
• A person can claim the refund of the excess tax paid/deducted during a financial year by
filing his or her income tax returns for that year.
• A person can file his/her return either by uploading the filled excel/java utility form or by
providing the required data in the online forms
• Tax department has started providing pre-filled ITRs on the online platform.
• The ITR form is filled with information regarding salary income, interest income Tax
department has started providing pre-filled ITRs on the online platform.

15. REFUND CLAIMED SHOWS IN ITR FILED
• Click on the validate button on the 'Taxes paid and Verification' sheet
the system will auto calculate the refund due to you and the refund
amount will show up in the 'Refund' row.
• Once you file and verify your ITR the I-T department will process it
and verify the genuineness of the claim made.
• Need to ensure that the bank account in which you wish to receive the
refund amount is pre-validated.

16. HOW TO CHECK INCOME TAX REFUND
STATUS
• On the e-filing website:
•
To check the status of your tax refund, you are required to take the following steps:
1. Visit website: www.incometaxindiaefiling.gov.in
2. Login to your account by entering these details: PAN, password and captcha code.
3. Click on 'View Returns/Forms'
4. Select 'Income Tax Returns' from the drop down menu and click on submit.
5. Click on your acknowledgement number, which is a hyperlink to the relevant assessment
year on the system. For FY 2019-20, the assessment year is AY 2020-21.
6. A new webpage will appear on your screen showing complete details of your ITR
filing - from the date of ITR filed to ITR processed and date of issuing refund.
•

17. HOW TO CHECK INCOME TAX REFUND
STATUS
• On the TIN NSDL website:
Alternatively, one can check the status of the income tax refund on the TIN
NSDL website as well. Refund status is available on the website 10 days after
the refund has been sent by the department to the bank, i.e., SBI.
This is how you can check the status of your income tax refund here:
1. Visit the website: https://tin.tin.nsdl.com/oltas/refundstatuslogin.html
2. Enter your PAN details
3. Select the relevant assessment year for which you want to check the refund
status.

18. • Section-122 provides that in case assesse fails to pay any sum
imposed by way of interest, fine, penalty, or any other sum payable
under the provisions of this Act, the same shall be recoverable in the
manner specified in the Act for the recovery of arrears of tax.
MODES OF RECOVERY OF TAX [Section 122]

19. MODES OF RECOVERY OF TAX UNDER GST
• Deduction of due amount from the tax amount payable to such person by the
department.
• Recovery of tax by way of detaining and selling any goods belonging to such person.
• Recovery of tax from another person, from whom money is either due or may become due
to such person.
• Recovery of tax from another person, who holds or may subsequently hold money for or
on account of such person, to pay to the credit of the Central or a State Government.
• Recovery of tax by way of application to the appropriate magistrate, who in turn shall
proceed to recover the amount as if it were a fine imposed by him.
• Recovery of tax via enforcing the bond or instrument executed under the Act or any rules
or regulations made under the Act.