Airport customs officials seized approximately 56.97 kg of contraband gold in 2018-19, 51.73 kg in 2019-20, 26.62 kg in 2020-21, 47.67 kg in 2021-22, and 52 kg in 2022-23. From January to July of 2023, traffickers were caught with over 30 kilogrammes of gold, according to a customs department official at Lucknow airport.

Prior to the establishment of international flights from Lucknow, the majority of gold smuggling passed through Mumbai. Officials say that after strictness at larger airports such as Mumbai and Delhi, smugglers found smaller airports such as Lucknow and Varanasi more practicable.

Greater amounts of the yellow metal are smuggled from Gulf states because gold prices are substantially lower there.

Gold costs between 45 and 50 crore per kilogramme in Gulf nations. If carried into India legally, 3% GST is added to 7.5% customs duty and 2.5% agriculture infrastructure and development cess, bringing the price per kilogramme to approximately 60 lakh. However, when it is smuggled, traffickers make a net profit of 5 to 7 lakh per kilogramme, according to officials.

The majority of illicit gold originates in Saudi Arabia, Muscat, Dubai, and occasionally Bangkok. Experts estimate that only 10 to 15% of the total amount of gold being transported could be seized.

The mode of operation of smugglers is constantly evolving. A senior customs official stated, “The majority of individuals apprehended with gold are couriers for major traffickers. They are trained before being dispatched with the shipment. The traffickers are intelligent; they are aware that they will only be arrested if they are transporting more than 50 lakh in gold. To avoid detention, the majority of them carry approximately 750 g of gold, which falls under the 50 lakh threshold.”

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The department of customs has compiled a list of “repeat offenders” who are captured smuggling gold into India. A manifest of 107 passengers suspected of smuggling was sent to the regional passport office with the recommendation that their passports be revoked.

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Individuals must submit their ITRs to the Income Tax Department every year. How long it takes to receive an ITR refund is a common topic of inquiry among taxpayers.

Moneypoise gives a detailed explanation of how to get your ITR return and how long it takes to do so.

Recognising the ITR refund procedure

Understanding the process of ITR refunds is essential before we can discuss the timeline. A tax refund is available to people who have overpaid their taxes through TDS or advance tax payments. Once the individual has filed their ITR and the I-T Department has verified the claim, the refund will be processed.

The money is sent directly to the taxpayer’s checking or savings account. The I.T. department has shifted the entire procedure online to increase openness and efficiency. With the help of technology, we have been able to drastically reduce the amount of time it takes to issue a refund.

Factors influencing ITR refund timelines

The time it takes to get an ITR refund is determined by various factors, including:

Information accuracy:The precision of the ITR data is essential. Reimbursement could be held up if there are any mistakes or misinformation. Income, deductions, and tax payments must all be accurately reported. It is essential to double check all information on the ITR before submitting it. Incorrect or out-of-date bank account information is a typical cause of refund delays when filing taxes. It’s crucial that your account information is correct and up to date. In addition, if there are many active bank accounts, the refund deposit must be made to a specific one.

Filing deadline: After the ITR verification process is complete, the reimbursement process is initiated by the I-T Department. The department will conduct an accuracy review of the return after the ITR has been validated. The department will process the reimbursement if all the paperwork is in order. How long it takes can change based on how complicated the ITR is and how many returns are currently being processed.

Filing mode: Filing your ITRs electronically is far quicker than using paper forms. For quicker processing and refunds, the I.T. Department suggests filing forms electronically. By reducing the potential for ITR filing mistakes, e-filing allows for more expedited processing times. No longer may a return be filed on paper, only electronically, with limited exceptions made for those who are really elderly.

Verification: Either an Aadhaar OTP can be used to verify the ITR electronically, or a signed copy of the ITR-V can be mailed or brought in person to the Centralised Processing Centre in Bengaluru. The reimbursement procedure begins only after the verification is complete. Refunds may be held up if verification takes too long..

ITR refund expected timeline

The ITR refund is typically paid out within 2 months (The average processing time for refunds has fallen dramatically, and in certain cases, refunds are now being refunded within a matter of weeks.) following the day the return was electronically filed, provided all requirements have been completed. However, keep in mind that the aforementioned factors make this plan flexible.

When the refund has been issued, the taxpayer is notified by email from the I.T. department. The department’s website will update you on the situation at any time. A refund’s status can change from “Paid” to “Failed” to “Expired” and so on depending on where the refund is in its lifecycle.

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How can I speed up the ITR refund process?

Here are some pointers to help you get your ITR refund faster:

File early: The sooner you file your ITR the earlier you will receive your refund. It is advisable to file your ITR well in advance of the due date. This not only ensures prompt processing but also allows you plenty of opportunity to correct any problems or anomalies.

E-file: The process of submitting your ITR electronically is streamlined and quick. Additionally, it reduces the likelihood of making mistakes. Even first-time filers won’t have any trouble with the I.T. Department’s e-filing platform because of the helpful instructions and user-friendly interface..

Verify your ITR: As soon as you file your ITR, make sure to verify it. Delays in verification can cause delays in refund processing. The I-T Department offers a variety of verification options, including electronic verification via Aadhaar OTP and EVC.

Ensure accurate information: Check whether all of the information in the ITR is correct. Any inconsistencies can cause a delay. Before submitting the ITR, double-check all the facts, including income, deductions, and tax paid.

While the process for requesting an ITR refund is straightforward and fast, the actual time it takes to get your money can vary widely. By being aware of and prepared for these challenges, taxpayers can improve the likelihood of a streamlined and quick refund process. Knowing and following all applicable tax laws and regulations can help keep the ITR filing and return procedure as smooth as possible.

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Are Mutual Funds Taxable? 

Yes. The returns from a mutual fund are considered to be capital gains under the Income Tax Act of 1961 and are taxable in the hands of the investor. That’s not all. Even dividends that investors receive from a mutual fund are liable for taxation.

Tax on Dividends Arising From a Mutual Fund

Now that you know mutual funds are subject to income tax, let’s look more closely at how dividends are taxed. 

Union Budget 2020 states that dividends from stocks and mutual funds are to be included in your taxable income under the heading “Income from Other Sources,” and taxed at your marginal income tax rate. If, for example, your salary puts you in the 20% tax bracket, that percentage will also be applied to any dividends you receive from your mutual fund..

Tax on Capital Gains Arising From a Mutual Fund

Returns on mutual fund investments are considered capital gains under the Income Tax Act of 1961, as we have seen above. 

However, depending on whether the gains are short-term or long-term, a different tax rate may apply. Capital gains are classified differently depending on variables such as the type of mutual fund purchased and the length of time the investment was held. 

The following table should greatly improve your comprehension of the subject matter. 

Tax on Equity Fund Capital Gains 

Equity mutual funds are those that invest more than 65% of their assets in equities. Gains on equities funds held for a short period of time are subject to a 15% tax rate.

While short-term capital gains are subject to taxation, long-term capital gains from equities mutual funds are exempt up to Rs. 1 lakh every fiscal year. However, capital gains above Rs. 1 lakh would be taxed at a flat rate of 10%. 

Tax on Debt Fund Capital Gains 

Debt mutual funds are those that invest more than 65% of their assets in debt securities. Any profits you make from selling debt funds too soon are considered ordinary income and subject to taxation at your personal rate. 

Gains from holding debt mutual funds for more than a year are subject to a flat 20% tax rate. However, indexation works to your advantage.  

Tax on Hybrid Fund Capital Gains 

Whether a hybrid fund’s focus is on equities or bonds affects how its capital gains are taxed. Hybrid funds with an emphasis on equities would be taxed in the same way as equity funds. The tax treatment of debt-focused hybrid funds is equivalent to that of debt funds. 

Securities Transaction Tax (STT) on Mutual Funds

Units of stock mutual funds and equity-focused hybrid funds are subject to Securities Transaction Tax (STT) in addition to income tax on mutual funds. Your share of STT will be 0.001%. Unit sales of debt mutual funds are exempt from the Securities Transaction Tax. 

Conclusion

Everything you need to know about paying taxes on mutual funds is now at your fingertips. You may also see that the longer you keep the mutual fund, the less tax you will incur. You should invest in mutual funds with the intention of holding them for the long term.

However, a trading and demat account is required to invest in a mutual fund. Motilal Oswal allows you to open a Demat account and a trading account in a matter of minutes, at no cost to you. After signing up, you’ll have access to Motilal Oswal’s powerful trading platform, where you may purchase shares of publicly traded companies and mutual funds. 

Read Also : In Mutual Funds, How Does Compounding Work?

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