1. Gather necessary documents.Collect all supporting documents required to claim the relief. This may include investment proofs, certificates, receipts, and other relevant documents as per the relief you are claiming.
2. File income tax return. Prepare and file your income tax return using the appropriate forms, such as ITR-1, ITR-2, etc. based on your income sourcesand other factors. Ensure you accurately report your income, deductions, and claim the relief under the appropriate section.
3. Verify and submit.Review your income tax return for accuracy and completeness. Verify the ITR either electronically using Aadhaar OTP, EVC (Electronic Verification Code), or by sending a signed physical ITR-V to the Centralized Processing Center (CPC).
4. ITR Processing. After verification, the income tax department will process the ITR and calculate the refund amount, if applicable.
5. Refund Disbursement.Once processed, the refund amount will be credited directly to the taxpayer’s bank account.

Here are some additional tips for claiming tax relief:

• Understand the different types of tax relief available.There are a variety of tax reliefs available to taxpayers, such as deductions for investments, medical expenses, educational expenses, and charitable donations. Make sure you understand the different types of relief available and which ones you are eligible to claim.
• Keep all supporting documents.It is important to keep all supporting documents for your tax returns, even if you are not claiming any relief for them. This will make it easier to claim relief in future years, or if the income tax department asks for any clarification.
• File your income tax return on time.Filing your income tax return on time is essential for claiming tax relief. If you miss the deadline, you may not be able to claim the relief in that year.

EXAMPLE

Procedure for claiming tax relief in Delhi, India

Eligibility

• You must be a resident of Delhi.
• You must have paid income tax for the relevant assessment year.
• You must be eligible for the tax relief you are claiming.

Types of tax relief available in Delhi

• Tax rebate for individuals with lower income: Individuals with a gross total income of up to Rs.5 lakh are eligible for a tax rebate of up to Rs.12,500 under Section 87A of the Income Tax Act, 1961.
• Deductions for investments and expenses: There are a number of investments and expenses that are eligible for deductions under the Income Tax Act, 1961. Some of the most common deductions include:
  • Deduction for life insurance premiums under Section 80C
  • Deduction for health insurance premiums under Section 80D
  • Deduction for house rent allowance under Section 10(13A)
  • Deduction for leave travel allowance under Section 10(5)
• Tax credits: Tax credits are amounts that are directly subtracted from your tax liability. One of the most common tax credits is the foreign tax credit, which is available to individuals who have paid taxes on their foreign income.

How to claim tax relief

To claim tax relief, you must file an income tax return (ITR) with the Income Tax Department. You can file your ITR online or offline.

If you are claiming a tax rebate or deduction, you must provide supporting documentation with your ITR. For example, if you are claiming a deduction for life insurance premiums, you must attach a copy of your life insurance policy to your ITR.

Once you have filed your ITR, the Income Tax Department will process your return and calculate your tax liability. If you are eligible for a tax rebate or refund, the amount will be credited directly to your bank account.

Example:

Mr. X is a resident of Delhi and earns a salary of Rs.6 lakh per annum. He has also paid life insurance premiums of Rs.50,000 and health insurance premiums of Rs.25,000 during the year.

Mr. X is eligible for the following tax relief:

• Tax rebate under Section 87A: Rs.12,500
• Deduction for life insurance premiums under Section 80C: Rs.50,000
• Deduction for health insurance premiums under Section 80D: Rs.25,000

Mr. X’s total tax relief is Rs.87,500.

To claim the tax relief, Mr. X must file an ITR and attach copies of his life insurance policy and health insurance policy to the ITR.

FAQ QUESTIONS

What is tax relief?

Tax relief is a reduction in the amount of income tax that a taxpayer has to pay. It can be claimed under various sections of the Income Tax Act, 1961, based on the taxpayer’s eligibility and the type of income.

Q: What are the different types of tax relief available?

Some of the common types of tax relief available in India include:

• Deductions:Deductions are subtracted from the taxpayer’s total income to reduce the taxable income. Some examples of deductions include house rent allowance (HRA), leave travel allowance (LTA), medical expenses, and tuition fees.
• Exemptions:Exemptions are certain types of income that are not taxable. Some examples of exempt income include agricultural income, long-term capital gains up to Rs.1 lakh, and interest income from savings bank accounts up to Rs.10,000.
• Rebates:Rebates are deducted from the taxpayer’s tax liability. Some examples of rebates include rebate under section 87A for individuals with total income up to Rs.5 lakh and rebate under section 89 for arrears of salary and gratuity.

Q: How to claim tax relief?

To claim tax relief, taxpayers must file their income tax returns (ITRs) on or before the due date. The ITRs can be filed online or offline. While filing the ITR, taxpayers must claim all the deductions and exemptions that they are eligible for.

Q: What documents are required to claim tax relief?

The documents required to claim tax relief vary depending on the type of relief being claimed. However, some common documents that may be required include:

• Salary slips
• Form 16
• Investment proofs (e.g., bank statements, insurance policies, etc.)
• Medical bills
• Tuition fee receipts
• House rent receipts

Q: What is the deadline for claiming tax relief?

The deadline for claiming tax relief is the due date for filing the ITR. For the financial year 2022-23, the due date for filing the ITR is July 31, 2023, for individuals and August 31, 2023, for businesses.

Additional FAQs:

Q: Can I claim tax relief for medical expenses incurred by my family members?

Yes, you can claim tax relief for medical expenses incurred by your spouse, dependent children, and parents.

Q: Can I claim tax relief for education expenses incurred by my children?

Yes, you can claim tax relief for tuition fees and other education expenses incurred by your dependent children.

Q: Can I claim tax relief for investments made in my child’s name?

Yes, you can claim tax relief for investments made in your child’s name, provided that the child is a minor.

Q: What happens if I miss the deadline for filing my ITR?

If you miss the deadline for filing your ITR, you can still file it late. However, you will have to pay a late filing fee. The late filing fee is Rs.5,000 for individuals and Rs.10,000 for businesses.

CASE LAWS

• Goetze (India) Pvt Ltd v. Union of India (1996): The Supreme Court held in this case that an assessee is entitled to make a fresh claim for deduction or relief before the appellate authorities, even if the claim was not made in the original return of income or before the assessing officer.
• Central Board of Direct Taxes v. Satya Narain Shukla (2018): The Delhi High Court held in this case that the Income-tax Department cannot deny tax relief to an assesses on the ground that the claim was not made in the original return of income, if the assesses can show that the claim was genuine and that there was a reasonable cause for not making it in the original return.
• Paramjit Singh v. State Information Commission, Punjab (2016): The Punjab and Haryana High Court held in this case that the Income-tax Department is bound to consider any claim for tax relief made by an assesses, even if the claim is made after the expiry of the deadline for filing the return of income.
• VinubhaiHaribhai Patel (Malavia) v. Assistant Commissioner of Income-tax (2015): The Gujarat High Court held in this case that the Income-tax Department cannot disallow a claim for tax relief on the ground that the assesses did not furnish sufficient evidence to support the claim, if the assesses has furnished all the evidence that is reasonably available to him.
• Shailesh Gandhi v. Central Information Commission, New Delhi (2015): The Delhi High Court held in this case that the Income-tax Department is bound to provide an assesses with an opportunity to be heard before rejecting a claim for tax relief.

These case laws have established that the Income-tax Department cannot unreasonably deny tax relief to an assesses, even if the claim is made after the expiry of the deadline for filing the return of income or if the assesses does not furnish sufficient evidence to support the claim.

Procedure for claiming tax relief

To claim tax relief, an assesses must first file a return of income in the prescribed form. The return of income must include all of the assesses income, including any income that is eligible for tax relief. The assesses must also attach to the return of income any supporting documents that are required to support the claim for tax relief.

Once the return of income has been filed, the assessing officer will assess the assessor’s tax liability. If the assessing officer allows the claim for tax relief, the assesses will be entitled to a refund of any excess tax that has been paid. If the assessing officer disallows the claim for tax relief, the assesses will have the right to appeal the decision to the Commissioner of Income-tax (Appeals) and the Income-tax Appellate Tribunal.

It is important to note that the Income-tax Department has the power to disallow a claim for tax relief if the assesses does not have the necessary supporting documents or if the assesses is unable to provide a satisfactory explanation for the claim. However, the Income-tax Department cannot unreasonably deny tax relief to an assesses.