Question

Under which circumstance might you receive a tax refund from the IRS?

Answer 1

When your total of previous payments and applicable credits is more than the tax you owe.

Answer 2

In India, whoever has taxable income is liable to pay tax to the government. Usually, an estimated tax amount is deducted by the organisation from an employee's pay before crediting the actual salary.

Those who have paid excess tax, can avail the refund amount by filing the income tax returns for the financial year.

So, in the circumstance when the total amount of previous taxes paid and applicable credits is more than the tax owed, then there will be a tax refund from IRS (Indian Revenue Service).