Tax refund and the Benefits
Tax refund or tax rebate is given to those people whose income falls within the conditions of the tax slabs that are modified every year according to the rules of the government. Tax refund is the excess amount of money given back to the taxpayers who have paid more than what they are liable to pay. The government gives the tax refund money along with interest if the people claim the rebate within the given specified period.
The Union Budget of India provides tax refunds on various circumstances like providing rebates on paying for the medical services made available to the taxpayer or his family members, on an interest on the house loan in which the taxpayer is staying or on payment of the medical insurance. Tax rebates are available on funds, for senior citizens and employees. People who invest in mutual funds or equity funds are completely exempted from paying taxes. However the companies who come up with this scheme have to pay taxes and the payment on this dividend is around 10.2%. Tax refunds are also provided for male senior citizens by the Income Tax Act of 1961 to those who are more than 65 years of age. Similarly for those employees whose salary is given in advance or in arrears or who receives salary of more than 12 months.