HOW TO CHECK INCOME TAX REFUND STATUS EASILY?

The due date to file ITR return was 10th January 2021 for non audit cases and for cases requiring audit, the due date was 15th February 2021. The Income tax return filing time is over. Are you waiting for your Income tax refund? Let’s check out various matters related to Income tax refund.

What is an income tax refund?

When a taxpayer makes excess payment of income tax to the govt. against its actual income tax liability for a given year, the surplus quantity paid is refunded by the income tax department after due assessment. This refunded quantity is thought as “Income tax refund”.

When can you claim income tax refund?

Following are the situations when an Income Tax Refund can be claimed:

1. Excess TDS deducted –
   1. The employer generally deducts taxes after taking into consideration various documentary proofs provided to him by an employee pertaining to say for example 80C investments, Medical insurance premium under 80D etc. However, there are examples where an employee is not able to produce proof for few such investments before the end of a particular financial year and accordingly the employer goes ahead with a higher deduction. However, the benefit of such investment can be claimed by the employee while filing his return of income and therefore claim a refund of the higher taxes paid.
   2. Certain individuals may not fall within the taxable bracket at all i.e. their income would be less than Rs 2.5 lakhs. Hence, they would not have to pay any taxes. Yet, taxes would have been deducted on their income. This being so, they can claim a refund of the excess tax deducted;
2. Excess TDS was deducted on your interest income from bank FDs or bonds.
3. Excess advance tax paid-The advance tax paid on the basis of self-assessment was more than the actual tax liability for the given FY. This advance tax can be claimed as a refund while filing ITR.
4. Taxpayers may be called upon to pay additional taxes by their income-tax officer following certain additions made to their income during income tax proceedings. Such additions may be deleted by appeal authorities. Accordingly, the taxpayer will be refunded the taxes he would have paid.
5. In case of income taxable in more than one countries i.e Double taxation –This situation can arise when a person is a citizen of one country but receives income from another country. However, India has entered into a Double Taxation Avoidance Agreement (DTAA) with many countries where the agreement allows you to claim a tax refund if you are a non-resident Indian and your income is taxable in other countries. Any payment of excess tax can be claimed as refund under this DTAA agreement.

How to claim Income tax refund?

An income tax refund can be claimed just by filing ITR. Please note that the IT department can process the ITR for a refund as long as the ITR is verified through any of the web or offline modes of sending a signed copy of ITR V. any the refund from the IT department is subject to assessment/ verification from the IT department. Refund is received as long as the refund claim is found to be valid and legit.

How much income tax refund is received by the taxpayer?

When a taxpayer claims a refund in his return of income, the tax department processes such a return and also the taxpayer would receive an intimation from CPC under section 143(1) which can ensure the number of refund that the taxpayer is eligible to receive. The refund will either match with or it may well be higher / under what's claimed within the return of income supported the assessment done by the revenue enhancement department. This refund quantity is what the payer would ideally receive from the income tax department.

How to check for refund status?

Once the refund is determined, the same will be processed by the tax department. The status of refund can be checked either from:

1. The income tax e-filing portal or
2. The NSDL website

Using income tax e-filing portal

Step 1: Visit the income tax e-filing portal by clicking here

Step 2: Log into your account by entering the user id, password, and the “captcha” and then click on “login”.

Step 3: Click on “View Returns / Forms

Step 4: Enter “Income Tax Returns” against “Select an option” and the relevant Assessment Year(AY) and click on “Submit”.

Step 5: Click on the acknowledgement number

The income tax refund status appears.