Income Tax Refund Status

Under Income tax, the term refund can be defined as excess tax amount paid or deducted during the financial year which will be credited back to assessee. It will be credited back along with the Interest. The tax amount paid or deducted could be in the form of advance tax, self-assessment tax, tax deducted at source, In case of double taxation, for example – when a person is a citizen of one country but derives income from another country. However, there are a few countries with which India has a Double Taxation Avoidance Agreement (DTAA). This means you can claim a tax refund if you are a non-resident Indian working in a foreign country with which India has DTAA. For example, you hold a non-resident ordinary (NRO) deposit in an Indian bank. The interest earned on such deposits shall be taxed as per the applicable slab rate. However, if you qualify to be a tax resident of the foreign country where you reside, you may claim a tax refund for the TDS deducted on interests earned in India on your NRO deposit credit, etc. The only process to get a refund is by filing income tax returns.

Process for getting Refund:

  1. Compute the income and tax payable.
  2. Fill Income tax return form with the required details.
  3. Fill the TDS and self-assessment tax paid column with the amount of taxes deducted or paid.
  4. Check the amount of refund in Taxes paid and verification page.
  5. Then submit the return and e-verify the return or send a copy to CPC, Bangalore.
  6. Once the return gets processed then the IT department will issue a refund to the bank account mentioned in Income tax return.

Steps to Check Income Tax refund status:

Step 1: Visit https://tin.tin.nsdl.com/oltas/refund-status-pan.html

Step 2: Enter PAN, relevant assessment year and captcha then tap on proceed.

Step 3: 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.

Cases where refund wouldn’t get processed:

  1. If there is intimation under section 143(1) seeking reply for the difference in calculation between assessee and Income Tax officer.
  2. In case if the return was either e-verified or sent to a centralized processing center (CPC), Bangalore.
  3. If there is a mismatch in bank details provided by the assessee then also the refund won’t be processed.
  4. Department may not pay you all the refunds due to you. If at all you have taxes due for any of the previous years and a refund due to you in another year, the income tax department may adjust the refund accordingly. However, the department cannot do so without giving the taxpayer an opportunity to explain why such an adjustment should not be done.

Important points about Income Tax Refund:

  1. E-file your returns before the due date for speedy processing of income tax refunds.
  2. Ensure that the amount of excess tax paid by you is also reflected in Form 26AS.
  3. Ensure that the details of the bank account mentioned at the time of ITR filing are correct to prevent any delay in the credit of the tax refund amount. In case you furnish incorrect details, “Refund Unpaid” will be displayed as the income tax return status.
  4. Timely review the income tax refund status to take the applicable corrective measures if any.

An interest is compulsorily paid by the Income Tax Department if the amount of refund is 10% or more of the total tax paid. As per Section 244A of the Income Tax Act, simple interest at the rate of 0.5% per month or part of the month on the amount of tax refund is paid.

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