Non-Resident Indians in UAE: Potential Missteps in ITR Filing That Could Delay Your Indian Tax Refund This Year
Filing your Income Tax Return (ITR) from the UAE and ensuring a timely tax refund from India requires careful attention to detail. Here are some key steps to follow:
- Use the Correct ITR Form: It's essential to select the right ITR form based on your income sources, such as salary, rental, capital gains, or foreign assets. Filing the incorrect form can lead to delays or rejection in the refund process.
- Accurate Personal Details: Ensure that your personal details, including your Permanent Account Number (PAN), address, contact information, and linked Indian bank account, are correct and active. Incorrect or dormant bank accounts often cause refund failures.
- Cross-Check Your Data: Compare your ITR data with Form 26AS and the Annual Information Statement (AIS) to ensure all TDS and income entries match the official records. Data mismatches can delay refund processing.
- Early Filing: Submit your ITR as early as possible, ideally before the due date. Early filing increases the chances of quicker refund processing by the Income Tax Department's Centralised Processing Centre (CPC).
- E-Verification: Verify your return within 30 days via Aadhaar OTP, net banking, ATM, or demat login. An unverified return is treated as invalid, and refunds will not be processed.
- Report Deductions Correctly: When claiming deductions under Sections 80C, 80D, 80G, ensure they are reported accurately. Excess or incorrect claims may trigger scrutiny, potentially delaying or stopping refunds.
Common mistakes to avoid include using an incorrect or inactive bank account that can’t receive refunds, filing with the wrong ITR form not suited to your income profile, data mismatches between ITR, Form 26AS, and AIS resulting in processing delays, not e-verifying the return within the stipulated time, and over-reporting deductions or making errors in income reporting which invite additional scrutiny.
By following these steps carefully, you can help ensure your Indian tax refund is processed timely and smoothly while filing ITR from UAE.
- maintain accurate personal-finance records to correctly report your income and deductions, such as those under Sections 80C, 80D, and 80G, in your business dealings to avoid delays or rejections in your ITR refund.
- keep updated information about your health insurance policy premiums paid under Section 80D, as they could positively impact your personal-finance situation and ITR refund.
- follow the latest news and finance updates pertaining to personal-finance matters and tax policies to stay informed and make the most of opportunities that encourage timely ITR filing and efficient refund processing.
