Date:29/09/2008 URL: http://www.thehindu.com/2008/09/29/stories/2008092961261900.htm

Business

Is a refund application necessary in every case?

Refund becomes due because of TDS on bank interest etc. and total income falls below taxable level due to Sec. 80C relief. Income-tax Rule 41(4) allows this, where relief is claimed on Form 30. Then also an income tax return is to be filed under Rule 41(2). Form 30 appears to be redundant.

It is true that where a return is filed in time, it is bound to be acted upon and refund granted for any tax that is overpaid either by way of tax deduction, advance tax or self-assessment tax. When a person has taxable income, such refund is being granted without a refund application. It should, therefore, not be necessary for a taxpayer with taxable income to file separate refund application. Form 30 is a form for requesting refund on a certificate of one’s total income and the tax that is deducted. In a case, where there is no taxable income, return may be dispensed with, where Form 30 is filed. A refund claim along with return is a redundancy. But return is considered necessary in every case of refund. Form 30 itself can be dispensed with so as to simplify the procedure as suggested by the reader.

S. RAJARATNAM