Bangalore: One of the major worries faced by tax payers is the income tax return being refunded back to them in time. Most of the times, due to small mistakes, the tax refund is delayed. The usual reasons for this holdup are incorrect bank details, modifications in the residential address, time taken in processing the income tax refund filed on paper, etc as reported by Vidyalaxmi from ET Bureau.

"Some employees declare the details of the tax exemptions or deductions they are eligible to claim but fail to provide the relevant documentary proof to the employer organization within the timeframe prescribed by the employer. Further, deduction on account of donation is not considered by the employer while deducting tax on salary income. This deduction then can be claimed at the time of tax return filing," says Vaibhav Sankla, director, H&R Block India." as quoted by ET Bureau.

1. When Can you File an Income Tax Return?

Even though most of the companies advise their employees to confirm their tax plans, right at the beginning of the year, many employees fail to do so. This in turn leads to elevated tax deduction from their income. In such a case the employee is eligible to file a tax return.

Another example where you end up paying more tax than required is when you apply for a house loan with variable interest rate. If the interest on your loan mentioned in the Form 16 is according to the provisional certificate provided by the housing finance company/bank during that financial year, there may be a possibility that the rates reflected on the Form 16 are different from the actual rate.

Sometimes people pay advance tax on their capital profit earned during the year. There is always a possibility that they might bear some capital loss which they didn’t take into account while paying the tax in advance. "Or in some cases the tax payer realizes that the actual amount of capital gain is less (due to indexation, deductions u/s 54/54EC/54F, incorrect cost calculation etc.) than what he initially computed while paying the advance tax," says Vineet Agarwal, director, KPMG as quoted by ET Bureau.