Process of Income Tax Refund in India

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We often come across the term ‘tax refund’. Let’s understand what it means.

A tax refund or tax rebate is a refund provided when the tax liability to the taxpayer is less than the taxes paid. Taxpayers can avail the benefit of tax refund on their income tax if the tax liability is less than the total amount of their withholding taxes and estimated taxes that they have already paid, plus the refundable tax credits that are claimed by the them. Tax refunds are usually paid after the end of the tax year if the income tax return is filed by the taxpayer.

As per Sections 237 to 245 of the Income Tax Act, 1961, refunds arises in those cases where the amount of tax paid by a taxpayer is greater than the amount which he/she is actually chargeable.

Eligibility for taxation Refund

Following cases make you eligible for an income tax refund in India-

Eligibility for taxation Refund

Steps to get Income tax Refund in India

A Taxpayer is eligible to avail income tax refund once he/she files the return of income. The due date for filing IT returns is 31ST July of every year.

What is the amount of Income Tax that gets refunded?

First, you should calculate the tax liability that’s associated with the taxpayer, to ascertain the amount of tax that you will get back as IT refund. If the amount paid as taxes is more than the tax liability, then the excess amount will be refunded to your account.

Process of Income Tax Refund in India

How to get tax refund in account ?

Generating an IT refund is a simple and seamless process. The payment is either done by cheque or is directly credited to the same bank account that’s registered with Income Tax Department.

Claiming taxation Refund

The quickest and simplest method of filing your income tax refund is to declare all the investments in Form 16. Here, investments include LIC premiums paid, house rent being paid, investments in equity/NSC/mutual funds, bank FDs, tuition fees, etc. While filing your IT return, submit all necessary and relevant proofs.

Fill out Form 30, in case you have failed to do so and have been paying extra taxes that you simply think you can avoid it.

Let’s understand what Form 30 is. Form 30 is basically a request that the case be looked into and analyzed, so that the excess tax that have been paid is refunded. The refund claim should be submitted before the end of the financial year. Also, your claim needs to be supported by a return in the form, as prescribed under Section 139 of the Income Tax Act, 1961.

How to check Income Tax Refund Status?

  • Checking IT Refund Status on the e-Filing Website
    You can check your IT refund status from the government’s official income tax e-Filing website through these steps:
    • Visit the official e-Filing website and select the ‘ITR Status’ option
    • Enter relevant details like PAN number, Acknowledgement number and captcha code, and then click on the ‘submit’ option. Visually impaired individuals can choose the OTP (One Time Password) option which will be sent on their registered mobile number.
  • Checking Income Tax Refund Status on TIN/NSDL Website
    You can check your IT refund status from the official website of Tax Information Network (TIN) by following these steps:
    • Visit the official website of TIN
    • Enter the essential details like PAN number, Assessment Year and captcha code.
    • Select the ‘Submit’ button to view your current IT refund status.

What to try and do If Refund isn’t Processed?

Income Tax return form has got to be verified by the appropriate authorities to process Income Tax returns. If you’re yet to receive your refund even after 3 or 4 months after 31st July of a particular assessment year, it perhaps implies that your refund has not been verified yet.

You can get connected with the Centralized process Centre (CPC) of the taxation Department on 1800 4250 0025 or 080-2650 0025 to clarify the reason(s) behind the delay.

Takeaway

Income Tax Refund Process looks very cumbersome to those taxpayers who don’t receive the same in time or do not file their income tax returns on time. It is very important to file the returns on time and with the help of professionals so that they can help you in claiming maximum tax benefits as per the prevailing law. You can contact the team of Legal Window at admin@legalwindow.in for filing income tax returns.

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