Tax return filing is submitting your completed tax return to the tax authority, reporting your income, deductions, credits, and other financial information for a specific tax year.
When you file your tax return, you provide a detailed account of your financial activities and calculate the amount of tax you owe based on the applicable tax rates and deductions.
Tax return filing is mandatory for most individuals and businesses, and it must be done by the specified filing deadline set by the tax authority.
Tax return refund refers to the money that is returned to you by the tax authority if you have overpaid your taxes throughout the tax year.
This typically happens when the total amount of tax withheld from your income (through payroll withholding or estimated tax payments) is more than the actual tax liability you owe based on your financial situation.
In such cases, you are eligible for a tax refund, which is the excess amount you paid back to you.
To summarize, tax return filing is the process of submitting your tax return to the tax authority, while tax return refund is the result of overpaying your taxes and receiving the excess amount back from the tax authority. Filing your tax return is the first step in determining whether you owe taxes or are entitled to a refund.
If your tax return shows that you have paid more tax than necessary, you can claim a tax refund from the tax authority after your return is processed and accepted.
You will become eligible for this income tax refund if you meet any of the given criteria:
a)Total advance tax payments you paid must be more than 100% of your actual tax liabilities for the given financial year
b)TDS payments in the given financial year exceed your final tax liability after regular assessment
c) If you have made last moment of tax-saving investments like taking insurance ,house loan
d) if You paid tax on your income in a foreign country which has a double taxation avoidance agreement (DTAA) with our country (INDIA)
e) If You have paid excess tax payment under regular assessment due to an error in monthly assessment