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Income Tax Refund

IT Refund

Last Updated 16th Apr 2021

  • When an assessee claims or request of refund for the additional amount paid as tax over the actual income tax payable, then such a refund is termed as Income Tax Refund.
  • You can visit the NSDL portal or e-filing portal of the Income Tax Department for making a claim.
  • The refund claims made through ITR must be filed within the due date of ITR return filing for the concerned assessment year.
  • Interest at a 6% is charged on the refund amount if the Income Tax Department delays making payment of it to you.
INCOME TAX CALCULATOR

What is Income Tax Refund?

Everyone is more or less familiar with the term Income Tax. It is charged by the central government on the annual income of individuals and HUF. Not paying income tax or paying less than what is required is a punishable offence in India. However, one can end up paying more than he or she is required to pay income tax. In such a scenario, the individual can file for the refund of the excess amount, which is called an income tax refund. If one has paid more amount as income tax than heor she is accountable for, a refund of the excessive amount can be requested tothe Income Tax Department, under Section 237 of the Indian Income Tax Act of 1961. However, the request or claim for income tax refund is subject to verification.

When Can I Claim Income Tax Refund?

One can claim Income Tax Refund or ITR refund under the following circumstances.

  • Your organization has deducted more tax than you areliable to pay.
  • The advance payment made by you as income tax hascrossed the actual tax accountability.
  • The tax deducted at source has exceeded the actual tax amount.
  • In the event of double taxation, which means you havebeen taxed in two countries for the same income.

How to Claim Income Tax Refund?

The easiest way to claim ITR refund is to present mutual funds, insurances, banks savings and other investments via Form-16 at the time of filing your IT return. The process has become effortless with the option of e-transfer. The income tax refund time should be kept in mind as verification needs to be completed either manually or online within 120 days from the claim.

In case you forgot to claim a refund while filing your ITR then you can do so by submitting Form-30.

How to Check Income Tax Refund Status Online?

Once the claim for income tax refund has been made, one can check the status in two methods. One can either visit the National Security depository Limited or NSDL website or go to the ITR e-filing portal managed by the Income Tax Department. Here are the detailed procedures of checking the income tax refund status using both methods.

Steps to Check Income Tax Refund Status on NSDL Website

  • Pay a visit to the NSDL website https://tin.tin.nsdl.com/oltas/refundstatuslogin.html.
  • Once you are on the homepage of NSDL, the page will ask for two details.
    • PAN
    • Assessment Year
  • Type in the Captcha Code as given in the image.
  • Tap on ‘Proceed’ and the page will show your ITR refund status.

The status will inform you whether your request is still processing or has been transferred to your account. If you have entered the wrong credentials or want to re-enter, take the option of ‘Clear’ and follow the same steps as mentioned above.

Steps to Check Income Tax Refund Status on e- filing Portal

Step 1: Get to the e-filing portal of income tax refund https://portal.incometaxindiaefiling.gov.in/e-Filing/UserLogin/LoginHome.html?lang=eng.

Step 2: You will land on the login page. Fill in the page with your account credentials and captcha code.

Step 3: Click on Login and access the homepage of the portal.

Step 4: Once on the home page, tap on ‘View Return / Forms’ on the Dashboard.

Step 5: Click on ‘My Account’ tab and choose ‘Income Tax Returns’ using the ‘Select an Option’ menu.

Step 6: Tap on ‘Submit’ to generate the list of returns details.

You can view the status given in the ‘Status’ column beside the ‘Ack. no.’ column. You can get the details by tapping on the respective ‘Ack. no.’

Eligibility for Income Tax Refund

The following taxpayers are eligible for an income tax refund.

  • Taxpayers who have paid more than their tax payability
  • 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

How to Track Income Tax Refund?

An income tax refund can be made either via direct transfer or via cheque. Below are two steps for income tax refund tracking.

  • Tracking income tax refund made via direct transfer: In the event of direct transfer, you can visit the NSDL portal (https://tin.tin.nsdl.com/oltas/refundstatuslogin.html) and the e-filing portal (https://www.incometaxindiaefiling.gov.in/home) of the Indian Income Tax Department for income tax refund tracking.
  • Tracking income tax refund made via cheque: For tracking your income tax refund made via cheque, you can contact the post-service in charge of delivering. However, the reference number of your ITR claim will be required.

Due Date to Claiming Income Tax Refund

The claim for an income tax return has to be done within the respective assessment year. However, in some instances, this pre-decided income tax refund time can be altered. Such late claims will require verification and consideration of the respective assessment officer. Furthermore, income tax refund claims are applicable for only six consecutive assessment years, and the refund amount must not cross the Rs.50 lakh bench per assessment year.

Interest on Delayed IT Refund

Delayed IT refunds are subject to interest accumulation. The taxpayers will receive interest on income tax refund at a rate of 6% from the date on which tax was paid, till the date, the refund was generated. The interest will be processed together with the refund. However, interest on an income tax refund is not applicable in the cases of late claims.

Income Tax Refund Helpline

Following are the income tax refund helpline numbers.

  • Queries related to IT refund (AayakarSamparka Kendra): 1800 180 1961
  • 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, ask@incometaxindia.gov.in.

FAQs

How can I check my income tax refund status?

You can check your income tax refunds by visiting the official website of NSDL or by going to the e-filing page of the Income Tax Department.
On the NSDL website, follow these steps.

  • Enter PAN, Assessment Year and captcha.
  • Tap on the ‘Proceed’ button.
  • On the e-filing portal, follow these steps.
  • Log in using your credential.
  • Tap on ‘View Returns / Form’ on the Dashboard and then ‘My Account’.
  • Select the option of ‘Income Tax Returns’ and push ‘Submit’.

Will tax returns be bigger in 2021?

The Union Budget of 2021 has restructured the tax slab and in the new structure tax accountability of individuals has been reduced. Moreover, taxpayers have the option to either go along with the new tax slab or continue along with the previous one.

Why are my taxes less this year 2021?

The fewer taxes in 2021 can be due to an increase in your investments which are eligible for income tax deduction while calculating. Otherwise, another reason can be that you have earned less income than the previous year.

How much should I expect to get back in taxes?

The refund you get on your taxes depends on the excessive tax amount you paid. In case of delay in receiving the refund, the excessive amount you paid along with interest accumulated on the amount since you started paying tax and till the date of refund generation will be your income tax refund.

When can I expect my refund in 2021?

After you have filed your ITR claim, the verification needs to be completed within 120 days of making the claims. Once the verification has been done, the Income Tax Department usually takes 30 to 45 days to generate the refund.

Why is my refund still being processed in 2021?

If your refund is still processing, it might be due to incorrect details provided along with your ITR claim or due to the claim being rejected. Check the status properly by contacting CPC at their toll-free numbers, 1800 425 2229 and 080 43456700.


Our News - Apr 2021
  • 2021-04-12 : Faceless tax assessment solved more than 60% of IT cases
    CBDT reported that the faceless tax assessment solved more than 60% of IT cases. It was set up with an aim to impart greater efficiency, transparency and accountability by eliminating the interface between the Assessing Officer and the assesses in the course of proceedings to the extent technologically feasible.
  • 2021-04-01 : New ITR rule for senior citizens above 75 years from 1 April
    With effect from 1 April 2021, senior citizens above 75 years of age will be exempted from filing income tax returns. This facility will be available to only those senior citizens who have no other income other than pension and interest income.
  • 2021-03-02 : CBDT extends dates for penalties and assessments
    CBDT extended the due date for penalties under the Income Tax Act, 1961 to 30th June 2021. Further, it also extended the deadline for assessments under the Income Tax Act and notices under the Benami Property Transaction Act, 1988 to 30th April 2021.
  • 2021-02-02 : Income tax won’t be taxed twice for NRIs
    Union Budget 2021-2022 proposes to provide relief from double taxation for NRIs on money accrued in foreign retirement accounts by claiming relief on tax deducted on such money in India. Currently, there is a mismatch in the year of taxability of such funds in India and the respective foreign country.
  • 2021-02-01 : Dispute resolution committee and National faceless income tax appellate tribunal to be set up
    FM proposed the setting up of the National faceless income tax appellate tribunal for individual taxpayers. Details of capital gains and interest from banks, post offices, etc will be pre-filled to ease filing of IT returns. Further, a Dispute a resolution committee will be set up for small companies.
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