Income Tax Refund: Online Procedure and Status for Income Tax Refund

Every year we all File Income Tax Returns (ITR) but most of us are not sure about how the process of claiming income tax refund works. It is the process by which the Income Tax Department returns any excess tax that has been paid by an assessee during a financial year (FY). This happens when the actual tax liability is less than the amount of tax paid. As per Section 237 of the Income Tax Act, 1961, assessees can claim a refund for tax amount paid in excess. Refund orders are issued by Income Tax Department only after the thorough verification of each income tax refund claim. 

In case a person fails to furnish all investment proofs on time, the organization, in that case, deducts taxes on the basis of the proof of investments submitted even if the actual investment is higher. In situations like these, the amount that is paid in excess can be claimed back from the government and is known as the Income tax refund. The Income Tax department also gives you the facility to adjust your tax refund amount against tax dues that are outstanding, under Section 254 of the IT Act.

You are eligible to receive a refund when you have paid more tax to the government than your actual tax liability. This usually happens when the advance tax, self-assessment tax paid or TDS deducted of the taxpayer is higher than the total tax liability of a taxpayer. 

Income Tax Refund: Online Procedure

  • File your income tax return online at the official Income Tax e-Filing website
  • You get an acknowledgment number for filing the return online with your digital signature.
  • You can also physically sign the ITR-V form generated online and submit it to Income tax processing center within the specified timeline (within 120 days of return filing).
  • Usually, the due date for income tax return filing is July 31stevery year unless extended by the Income Tax Department.
  • Wait till the Refund is processed.
  • After filing the ITR, the Income Tax Department will scrutinize and process the refund, if any.
  • Refund claims are processed through the State Bank of India.
  • Mode of payment of refund is based on the details furnished by you in income tax return file.
  • It can be through ECS (Electronic Clearing System) or through demand draft or cheque.
  • If you choose to get the refund credit through ECS, it’s essential to provide all the necessary details such as bank account number, bank branch and IFSC code correctly in the income tax return file.
  • If you choose to receive the refund through demand draft or cheque, it will be sent to your communication address mentioned in the ITR file.
  • Usually, it takes about 3-6 months to get the refund from the date of e-filing the ITR.
  • It may even take longer time if returns are filled physically.
  • In case your tax return record says you have paid in excess, then the extra amount paid has to be claimed as refund separately.

Income Tax Refund Status: Check Online

If you do not receive a refund within 6 months, you can check its status online. Log on to the NSDL website. Fill in your PAN and other details to check income tax refund status.

If the status says:

  • Refund had expired- Then, Request for re-issuance of refund by logging into e-filing portal. In case the return was filed physically, then contact your income tax assessing officer.
  • Refund had returned- The refund payment cheque or demand draft sent to communication address has been returned undelivered or the bank account details provided for ECS are incorrect. In such cases, you should contact your assessing officer to get the refund reissued. In case of e-filing, place a request for re-issuance of refund in your e-filing account.
  • Refund paid- This could be a delay from processing banks end. Check your account number, IFSC code and other bank details are correctly mentioned. Check with the concerned department of SBI for further guidance.
  • No demand no refund- Your IT return is processed, but the income tax department has found (after scrutiny of facts and circumstances) that there was no extra tax paid. In such cases, you can file for rectification by submitting all the proofs of investment along with Form 16.

Another way of claiming a refund is by filling up Form 30. Form 30 is a refund request form that needs to be submitted to the Income Tax Department. This request letter talks about the tax amount paid by you which is more than the actual tax liability for the particular assessment year.

Form 30 needs to be submitted by the end of the financial year. You need to also enclose the investment proofs and other documents to justify the refund claim.

4 Responses

  1. Ramshah Akbar says:

    👍

  2. Mohan Ramaswami says:

    what to do in respect of refund due for fin year 2007/2008, when there was no online filing. refunds are kept pending . how to go about such cases ?

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  4. sound says:

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