Overpaid Taxes Can Be Refunded In The Form Of A Tax Return

Image source: pexels.com

If you do find yourself overpaying your taxes when you file it, don’t worry, you can get back the additional taxes you’ve paid in the form of tax return or tax refund.

Tax return is the amount you have overpaid your taxes on and this commonly occurs when the taxpayer is subjected to MTD, and the monthly deduction does not include additional tax reliefs, such as purchase of approved items like books or personal computer, or unplanned expenses like medical expenses for serious illness.

If you are using income tax e-Filing to file your tax and you provide your bank account details correctly, you will be getting your refund credited directly into their bank accounts within 30 days after the declaration is made. Starting from Year of Assessment 2013, any taxpayers who do not receive their refund from LHDN within the 30 days will be compensated.

If the terms and conditions are met for the late refund, the taxpayers will be given 2% compensation.

For those who do not provide bank account details to LHDN and was receiving tax refund in the form of cheques, the payment method will be replaced with a new voucher system, known as tax refund voucher system (BBBC). The voucher for tax refund can only be banked in or cashed out at CIMB and CIMB Islamic branches in the country.