What is an Income Tax Refund? An income tax refund approved when a taxpayer owes more duties than his actual liability.
A tax refund generated when the taxes paid to exceed your actual tax liability (including interest). This can be in the form of advance tax, self-assessment tax, tax deduction at source, foreign tax debt, etc.
IT refunds calculated after filing income tax returns. If the taxpayer eligible for a refund, he informed via SMS or email.
This includes the total amount of refund deposited in one’s account, along with the refund sequence number, as per section 143 (1) of the Income Tax Act, 1961.
The funds either deposited directly to the taxpayer’s account through RTGS or NEFT or sent through check or demand draft to the registered address.
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When to Claim IT Refund?
- Your organization has deducted more tax than you are liable to pay.
- The advance payment made by you as income tax has crossed the actual tax accountability.
- The tax deducted at the source has exceeded the actual tax amount.
- In the event of double taxation, which means you have been taxed in two countries for the same income.
If the taxpayer fails to submit Form 80C against investments such as ELSS, a state income tax refund can also be claimed.
These mutual funds allow the taxpayer a maximum of Rs. 1.5 lakhs in an assessment year. IT refund can also claimed against house rent allowance, medical expenses for self or dependents, etc. for failure to submit Form 80C.
How to Claim Income Tax Refund?
The easiest way to claim an ITR refund is to present mutual funds, insurance, bank savings, and other investments through Form-16 while filing your IT returns.
The process is simplified with the option of e-transfer. The timing of the income tax refund must be taken into account as verification must be completed manually or online within 120 days from the claim.
If you forget to claim a refund while filing your ITR, you can do so by submitting Form-30.
Online Income Tax Refund Claim
A taxpayer can claim a refund within the assessment year that he has filed his IT return.
As per the Income Tax Act, 1961. Taxpayers have to file their return within 31 July of an assessment year to claim a refund.
On applying for an IT refund, one required to fill the Income Tax Refund Form. Along with the required documents such as Utility Form and pre-filled ITR. The completed forms can be downloaded from the official website.
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Tracking the Status of IT Refund
There are two different ways to track the status of an income tax return through the Income Tax e-filing website or on the TIN NSDL website.
Via official e-filing website
Here is a step-by-step process to check the status of IT refund.
- The taxpayer will have to log in to his or her account.
- Navigate to the section ‘View Return / Form’ and select Return Income Tax Return from the drop-down menu. Select the assessment year they want to check the refund status.
- They will be given an acknowledgment number. Which will redirect them to a page when filing and verifying the income tax return, when it was processed, status, method of payment, etc.
Via the TIN NSDL website
The status of an online income tax refund can also be checked on the website https://tin.tin.nsdl.com/oltas/refundstatuslogin.html.
- Navigate to the official TIN NSDL website.
- Provide PAN details.
- Select the assessment year for the refund status.
The state income tax return is liable to accrue interest if the total amount is more than 10% of the tax paid.
As per section 244A, interest paid @ 0.5% per month on the refund amount. It calculated from April 1 of each assessment year to the date of disbursement of refund.
Every individual taxpayer should know what the income tax return is and how to claim the same in case of any discrepancy.
This is one of the key features that allows the taxpayer to process reimbursement in case of incorrect calculation of their income tax.
How to check Income tax refund status?
You can check your refund status online using the procedure below:
- To access the refund pages.
- Enter PAN, relevant assessment year, and captcha image and click on submit
- You will see the Refund Status displayed on the next screen
- You can also access the Refund payment details reflected in Form 26AS in the ‘Tax credit statement’.
Eligibility for Income Tax Refund
The following taxpayers are eligible for an income tax refund.
- Taxpayers who have paid more than their tax payability
- And Taxpayers who have paid excessive tax in advance
- Taxpayers who have faced double taxation
- Taxpayers who have invested in tax-saving investments but have not declared them
Income Tax Refund Helpline
- Queries related to IT refund (AayakarSamparka Kendra): 1800 180 1961
- And Queries related to refund or any modification (CPC Bangalore): 1800 425 2229 / 080 43456700
- Queries related to refund payment (SBI Contact Centre): 1800 425 9760
You can mail your query at the official mail ID of AayakarSamparka Kendra, [email protected].
FAQ
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