What Does Income Tax Refund Refer?
It is nothing but the process in which the excess paid tax is returned by the Income Tax Department to the taxpayers during the financial year. If the tax paid in a financial year is more than their actual tax liability then the excess amount of tax paid is refunded to the taxpayers. Under section 237 of the income tax act 1961, the excess tax can be claimed as an income tax refund. The amount of income tax refund claimed by the taxpayers by filing ITR is subject to verification by the income tax department.
Time For The Income Tax Refund
Keys instance when an income tax refund can be claimed are given below:
- Using bank FDs or bonds excess TDS was deducted on your interest income.
- In the case of double taxation, for example, if a person is a citizen of India but receives income from other countries. By the way, India has a Double Taxation Avoidance Agreement (DTAA) along with some other countries too. This indicates that one can claim the income tax refund if the individual is a non-resident Indian but working in foreign countries with which India has DTAA. For an instance, if the one holds a non-resident ordinary (NRO) deposits in the Banks of India. If the one is qualified to be a tax resident of the abroad countries where the one is residing they may claim a tax refund for the TDS deducted on interests earned in India on the individual’s NRO deposit. As per the applicable slab rates, the interest earned on such deposits shall be taxed.
- If the individual didn’t furnish all the necessary investment proofs to the organization as a result of which the amount of taxes deducted by the employee exceeded the actual tax liability for the particular financial year.
- As per the regular assessment, the tax paid on self-assessment exceeded the tax liability for the applicable respective financial year.
Claiming Process Of Income Tax Refund
Usually, in the early day’s income tax form 30 was required for the claiming process of an income tax refund. It can be claimed nowadays just by simply filing the ITR it was only with the advent of e-transfer of refunds. The ITR should be verified either electronically or physically within 120 days of filing.
Please keep note that the excess tax for which the refund is claimed should be reflected in form 26AS. The income tax department verifies the refund process. If it is valid only by the department then the refund claim is credited.
Checking Status Of Income Tax Refund
By following the steps given below the income tax refund can be checked
- On the e-filing portal of the income tax department.
- Or on the NSDL website
Step by Step Process and Guide for Checking Refund Status on the NSDL Website:
- Go to the NSDL website to track refunds.
- A web page appears next to it, fill the details asked in it including PAN and AY, and click the proceed option.
- Then now your respective income tax refund status is displayed on the page.
Step by Step Process and Guide for Checking Refund Status on the E-Filing Portal
- Log in to the e-filing portal of the income tax department.
- Select view returns or forms.
- Go to ‘MY ACCOUNT’ and select ‘INCOME TAX RETURNS’, click submit.
- Click on acknowledgment number.
- A page of respective return details and with income tax refund status will appear.
Income Tax Refund Claiming Time Limit
The whole process of claiming a refund depends on the submission of ITR the time limit for the claiming is as same as an IT refund. The end of the assessment year is the time period for filing your returns and claiming a refund, this is for any assessment year. and hence for AY 2019-20 the last and ending date to claim an income tax refund is 31st march of the financial year.
Special Cases Of Income Tax Refund
- If an individual’s income is included in the total income of any other’s income then the latter can claim an income tax refund for such income. For an instance, the minor’s income is added to their parent or guardian and the parent or guardian can claim a refund on behalf of the minor child.
- Under section 238 0f the income tax act 1961, the guardian or receiver can claim the refund on the behalf of the person is the respective person is unable to claim a tax refund due to death or any other cases.
Appeal For Income Tax Refund
When a refund of any amount is due to taxpayers as a result of any order passed in response to an appeal, then the refund amount will be credited without making a claim for such a refund. In other ways, it can be described as there is no requirement for the tax assessed to place any request additionally for refund. If the assessment was canceled with a direction to make a fresh assessment the refund shall become due only after making the new assessment.
Frequently Asked Questions –
- How many days it will take for a refund after ITR processing?
- Can my refund take more than 21 days?