2 Ways To Check Income Tax Refund Status In Minutes Photo credit: Thinkstock
New Delhi: When a taxpayer pays an excess of income tax to the government over its actual income tax for a given year, the excess amount paid is refunded by the income tax department after assessment. This refunded amount is called “Income Tax Refund”. You will only receive this tax refund after the IT department has processed your RTI and confirmed it via a formal notice.
The income tax refund can be claimed simply by filing an income tax refund. IT will process the ITR for refund only if the ITR is verified through one of the online or offline modes of sending a signed copy of the ITR V. In addition, the IT service refund is subject to evaluation / verification by the IT department. Refund is only received if the refund request is found to be valid and legitimate.
Please note that when a taxpayer requests a refund in their tax return, the tax department processes this return and the taxpayer will receive a notice from the CPC under section 143 (1) which will confirm the amount of the refund to which the taxpayer is eligible.
The refund may be equal to or greater / less than what is claimed in the income tax return based on the assessment made by the income tax service. This refund amount is what the taxpayer would ideally receive from the income tax department.
Income tax refunds can be claimed when:
- You have not provided all proof of investment to your organization. As a result, the amount of taxes deducted by your employer exceeded your actual tax payable for the fiscal year in question.
- The excess TDS has been deducted from your interest income from bank FDs or bonds.
- The withholding tax you paid during the self-assessment exceeded your tax liability for the applicable financial year according to the regular assessment.
- In case of double taxation
How to check income tax refund status online:
You can check the income tax refund status on the National Securities Depository Ltd (NSDL) website, as well as the Income Tax Service e-filing portal.
1. On the NSDL website
- Go to the NSDL website to track the refund.
- The following web page will appear. Fill in the details including PAN and AY and click “Continue”.
- Your income tax refund status will be displayed, as shown in the following image.
2. On the electronic filing portal:
- Log in to the Income Tax Service e-filing portal by clicking here.
- Select Show Returns / Forms.
- Go to the “My Account” tab and select “Income Tax Returns”. Click submit.
- Click on the acknowledgment number.
- A page showing the details of your return as well as the income tax refund status will appear.
Income tax refund deadline:
The refund is usually processed within one month of filing the RTI. After the refund processing is completed by the Central Processing Center (CPC), refunds are issued within 20-45 days. Refunds for taxpayers eligible for refunds up to Rs 5 lakh get direct bank credit within a week of processing the refunds.
However, a delay is likely to occur if the taxpayer makes a mistake in completing the ITRs. Refunds are withheld in the event of a mismatch between the ITR and the details available from IT. If there is a question, the taxpayer must respond quickly.
In many cases, income tax refunds are not issued or are rejected due to simple errors such as providing incorrect bank details in the ITR form. In this case, check the bank details you mentioned in your RTI.