This week in Personal Finance: How to get your tax refund early; when to exit a mutual fund

The new financial year is well on its way. After having completed your tax saving investments for the previous year, it will now be time to file your tax returns. The sooner you do the better, more so if you are hoping to get some tax refund from income tax authorities.

You will be due to get a refund of tax paid if you have paid excess tax during the year through tax deducted at source (TDS) or your tax-saving investments have not been taken into account while computing TDS.

However, many tax refunds get stuck due to improper filling of returns or data mismatch with what you are filing and the figures with the income tax department.

Sudhir Kaushik, co-founder and CFO,, says that the primary responsibility of an early tax refund lies with the taxpayer. “Taxpayers around the world have a happy day when their refund cheque or credit arrives. In India, refunds are being processed within. 2-3 months of filing returns or maybe less. Those whose refunds are delayed are mostly responsible themselves because most of the reason are in their control,” Kaushik said.

So, when you file your tax returns, you need to ensure that all details are filled in properly so as to help the tax authorities to process your refunds, if any, quickly.

Follow these simple steps to ensure that your refund is processed early and credited to you

If you are new to tax filing, you might be confused over the difference between the terms – Income Tax and Tax Deduction at Source. Both lead to higher revenues to the government, but their computation mechanism differs.

Before you start filing your tax returns, read to clear any confusion in your mind related to these terms and understand the relevance and implications.

Budget 2018 had made several changes which you need to keep in mind while filing your tax returns. As a taxpayer, it is necessary for you to keep abreast of these amendments to enable a salaried individual to compute taxes and file individual tax returns.

The capital market has slipped a lot since the beginning of the current calendar year creating an erosion of wealth for investors. In such a scenario, it might be heartbreaking to see your mutual fund investment lagging behind the top performing funds and giving relatively poor returns.

What can you as an investor do in such a situation? Read to know.

What mode have you chosen for your mutual fund investment? Lump-sum or SIP? Most advisors would tell you about the benefits of SIPs as they help in cost averaging your investments over market cycles. However, did you consider step-up SIPs to boost your returns potential? You must be wondering what are step-up SIPs.

Read to learn what they are and their advantages.

Has the falling capital market prompted the thought of discontinuing your SIP instalments? In fact, a falling market may be the best time for your SIPs amount to be deducted from your bank. However, there may be valid reasons for an investor to stop their SIPs. Read to know when you should give the instruction to stop your SIPs.

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