As the ITR (Income Tax Return) filing season for 2024 begins, taxpayers need to be aware of several key aspects, including the banks authorized for tax payment, the process for tax refunds, and how to respond to demand notices from the Income Tax Department.
Source:- India today
Banks Authorized for Tax Payment
The Income Tax Department has authorized several banks to facilitate direct tax payments. These include major public sector banks like State Bank of India (SBI), Punjab National Bank (PNB), and Bank of Baroda, as well as private banks such as HDFC Bank, ICICI Bank, and Axis Bank. Taxpayers can use these banks’ online platforms or visit branches to make tax payments, ensuring they have their PAN (Permanent Account Number) and relevant tax details handy.
Source:- BBC news
Tax Refund Process
Tax refunds occur when the taxes paid exceed the taxpayer’s actual liability. Once the ITR is filed and processed, the refund amount is usually credited directly to the bank account mentioned in the return. Taxpayers can track their refund status online through the Income Tax Department’s e-filing portal or the National Securities Depository Limited (NSDL) website. Typically, refunds are processed within a few weeks, but this can vary.
Responding to Demand Notices
If there is a discrepancy in the ITR or an outstanding tax demand, the Income Tax Department issues a demand notice. Taxpayers must respond promptly through the e-filing portal by either agreeing with the demand and making the payment or disputing it with appropriate evidence. Ignoring demand notices can lead to penalties and interest charges, so timely action is crucial.
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