Income Tax Refund

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What is Income Tax Refund?

The central government commands income Tax on the annual salary of individuals and HUFs. Suppose you do not pay any income tax or pay less than it is considered a punishable offence in India. Also, one can even pay more income tax than he/she is required to pay. In such situations, the taxpayers can apply for the extra amount refund, known as an income tax refund.

If someone has paid more income tax than they are accountable for, a refund of the exceeded amount can be requested to the Income Tax Department. This falls under Section 237 of the Indian Income Tax Act of 1961. However, the requestor’s claim for an income tax refund depends on verification.

When can I claim Income Tax Refund?

You can claim Income Tax Refund or ITR refund in the following cases:

Your company has deducted more tax than you are chargeable.
The payment made by you in advance as income tax has exceeded the real tax accountability.
The tax deducted by the source is more than what should have been deducted.
In the case of double taxation, which means that you have been asked to pay taxes in two different countries in that very year.

How to claim Income Tax Refund?

The simplest method to claim an Income Tax refund is to present insurances, bank savings, mutual funds, and other investments made by you via Form-16 when filing your IT return. With the feature of e-transfer, it has become an effortless process. You should be aware of the ITR time as verification must be completed either online or offline within 4 months/120 days from the claim.

In case you missed claiming a refund while filing your ITR, you can still claim a refund by submitting Form-30.

How to check the Income Tax refund status online?

Once you claim your ITR, you can check its status in two methods.

You can visit the National Security depository Limited or NSDL website.
You can go to the ITR e-filing portal controlled by the IT Department.

Measures to check the Income Tax Refund status on NSDL Website?

Visit the NSDL website.
On the homepage of NSDL, the page will ask for two details.

Your PAN Card
Your assessment year

Enter the Captcha Code as shown.
Click on ‘Proceed,’ and the page will display your ITR refund status.

Dialabank also provides the feature to check all the necessary documents to ease the process of getting your ITR

Measures to check the Income Tax Refund status on the e-Filling Portal?

Visit the portal for e-filing of the income tax refund.
The login page will open. Fill in your account credentials and submit the captcha code which is displayed.
Press Login and access the main page of the portal.
Tap on ‘View Return / Forms’ on the Dashboard of the Homepage.
Press the ‘My Account’ tab and select ‘Income Tax Returns’ by clicking on the ‘Select an Option’ menu.
Click on ‘Submit’ to get the list of returns information.

Eligibility for Income Tax Refund?

The ITR eligibility criteria are given below. Taxpayers who have:

Paid more than their actual tax responsibility
Paid excessive advanced tax
Faced double taxation due to transfer.
Investments in tax-saving but have not declared them.

How to track Income Tax Refunds?

There are two easy ways of making ITR: a) by direct transfer. b) via cheque. Given below are two simple steps for tracking the income tax refund.

Via direct transfer: In the event of direct transfer, you can go to the NSDL portal and the e-filing portal of the Indian IT Department for tracking your income tax refund.
Via cheque: You can contact the postal service in-charge of delivering. However, the reference number of your ITR claim will be needed.

Due Date to Claiming Income Tax Refund

To successfully claim your ITR, you should apply for the refund within the respective year of assessment. However, in a few cases, this pre-decided income tax refund time can be changed/manipulated. These types of late claims will need verification and consideration of the concerned assessment officer. Furthermore, income tax refund claims are applicable only for six successive years of assessment, and the refund amount must not cross the Rs.50 lakh limit for each assessment year.

ITR Helpline

Following are the ITR helpline numbers for queries related to:

IT refund (Aayakar Samparka Kendra): 1800 180 1961
Refund or any modification (CPC Bangalore) : 1800 425 2229 / 080 43456700
Refund payment (SBI Contact Centre): 1800 425 9760

FAQs about Income Tax Refund

✅ 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.
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 greater in 2021?

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

✅ Why are my taxes less in the year 2021?

The fewer taxes in 2021 can be due to an increase in your investments eligible for an 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 and interest accumulated on the amount since you started paying tax. Until 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.