A number of times the investment estimations made in a financial year mismatches with actual investments done at the year-end. In such cases, where the difference forms between total taxes deducted in the financial year's end with that of income tax, then one can claim TDS (tax deducted at source) refund.
The MNC in Mumbai where Rajesh works deducted about Rs 10.000 extra TDS because he was late in submitting his LIC premium documents for exemption under section 80C.
The total tax which Rajesh has to pay for 2013--2014 is Rs 30,000.
Employer deducted tax amount of Rs. 40, 000 from Rajesh's salary.
Now Rajesh is eligible for Rs 10,000 as Tax refund (Rs 40,000-Rs 30,000)
The total income tax paid by him last year was Rs 30,000 whereas it should have been Rs 20,000. This situation arose, as he could not get his LIC premium receipts on time. The deductions were greater than what these must have been as there was a delay in submission of tax proof within deadline.
Due to his confusion between choosing LIC and long term fixed deposit, he could not invest this deducted amount in time-frame as defined by the employer. However, he did eventually invest, but this investment could not be accounted in financial year tax calculation.
In order to apply for income tax return one has to, visit the website - https://incometaxindiaefiling.gov.in/, login or sign-up to download then enter all the particulars in the relevant form for refund of Income Tax and submit it.