Checking ITR refund is necessary especially if you have paid more taxes than your actual tax calculated. After a proper assessment of your tax filed, the tax authorities will refund the extra amount you have paid. Learn more about income tax refund, and how to check ITR refund status, etc. with this piece of writing!
Overview
Sometimes, a taxpayer pays a higher tax amount than their actual tax liability for that fiscal year. This may occur due to tax deducted at source or incorrect tax calculation. If you are in the same situation, it’s your right to claim an income tax refund. After your claim, this extra amount can be refunded to you after a proper assessment by the income tax department or dedicated authorities.
What is Income Tax Refund?
An income tax refund refers to the money that a taxpayer receives from the Income Tax authorities in case he/she has paid more income tax than their actual tax liability during a financial year. In other words if we say, Income Tax refund represents a return of excess money paid by the taxpayer to the Income Tax department or authorities. They may also claim for the income tax refund in the condition of excessive deductions, reduced tax liability due to exemptions, deductions or any other tax credits.
When a tax paying entity (be it an individual or a business) claims for income tax refund, the income tax department/authorities take actions to assess their actual tax liability as per their declared income and deductions.
How to check income tax refund status?
Claiming tax refund is the right of a tax paying entity!
There are two ways to check ITR refund status
- The Income Tax e-Filing Portal
- The TIN NSDL Portal
Eligibility for Income Tax Refund
A taxpayer is eligible to receive an Income Tax Refund from the tax authorities if the taxes he has paid during a fiscal year are more than his actual tax liability. Some possibilities why a taxpayer might have paid excess tax are;
Taxpayers might have paid excess tax due to the following reasons;
- TDS deduction by employer is more than actual tax liability
- Double tax paid on income earned in a foreign country
- Self-assessed Advanced tax paid is higher than actual tax liability
- Error is tax calculation
If you want to get your excess tax paid refunded, you need to file your ITR correctly along with verifying it.
How to claim an Income Tax Refund?
In order to claim your income tax refund, file your income tax return (ITR) properly by providing information of all your income and taxes paid with the Income Tax department. When your ITR is processed by the Income Tax authorities, and if any excess tax amount payment is found, the refund will be soon issued to you.
On the initiation of the refund, you may get it either in your bank account directly or a refund cheque will be sent to your registered address. If you don’t get your ITR refund within estimated time, check your ITR refund status online by visiting the Income Tax Department’s online portal.
How to check income tax refund status?
There are two ways to check ITR refund status. As per your convenience, you can choose either of the methods to track your ITR refund status. The two ways of checking your ITR refund status online are listed below;
- The Income Tax e-Filing Portal
- The TIN NSDL Portal
How to check Income Tax Refund Status through E-filing Portal?
In order to check your ITR refund status, opting for an e-filing portal can be a better choice. In order to get your income tax refund status online, follow the steps mentioned further;
Step 1 : Go to the official e-Filing Portal.
Step 2 : Log in to the portal using your UserID/PAN/Aadhaar.
Step 3 : Enter the ‘Captcha code’ which will be displayed on your screen.
Step 4 : Search for the ‘My Account’ section on the page.
Step 5 : Open the ‘Refund/Demand Status’ by clicking on this option.
Step 6 : Your income tax refund status will be displayed with other details like Assessment Year Status Reason on Refund Failure and Payment Mode.
These steps help you check your ITR Refund status online using e-Filing portal without any hassle.
How to Check Income Tax Refund Status through TIN NSDL Website?
Check your Income Tax Refund Status through TIN NSDL Website by the steps described below;
Step 1: Go to the official NSDL Website by typing URL address tin.tin.nsdl.com or searching NSDL official website in your browser.
Step 2: Enter your PAN Assessment Year and then ‘Captcha’ that you will see on your screen.
Step 3: In this step, click on ‘Proceed’ to check the status of the refund.
By following these quick and simple steps, you can get accurate information about your ITR refund status.
What does different Income Tax Refund status mean?
While checking your ITR refund status, you may get status depending on the situation. The different ITR Refund status possibilities with their meanings are described with the table below;
- E-filing not done : This status indicates that you have either not filed your return, not verified it properly or may have filed ITR using offline (manually) mode.
- Refund not determined :
It means that the Income Tax department has confirmed that you are not eligible for any ITR refund. It may be possible that you have not filed your taxes properly. In this case, one needs to check their filings.
- Refund has been encashed : It means that your ITR refund has been processed, credited to your bank account, and also it’s been encashed. In most of such cases, you need to contact your bank branch.
- Refund is already credited to your bank. Please contact your bank : This status means that the relevant authorities has processed your refund, but it has not been credited to your bank account yet. In this case, you need to check your bank or the CPC on how to proceed.
- Unable to credit refund as the Account Number provided by you is incorrect : It means that your given details regarding your bank account credentials are incorrect. In this case, simple update your bank account details and request for the refund to be processed.
- Defective return u/s 139 (9) : In case, you ITR filing has any error, you will receive this status. To check the exact error, you need to check your tax filing or the comments.
- ITR processed but need a rectification request : This indicates that if the Income tax department finds any mismatch in the taxes you have filed and their records.
- Return submitted; processing rights transferred to Jurisdictional Assessing Officer : It says that your request will be processed by the Jurisdictional Assessing Officer.
- Return submitted and not verified : It says that you forgot to verify your returns. E-Verify your returns or submit ITR-V to CPC within 120 days of filing your returns.
- Return processed with No demand and No Refund : This status means that your ITR refund has been processed, but you are not eligible for a refund.
- Return Processed, and Tax Demand Determined : It means that your ITR has been assessed by the IT department and your tax payable has also been determined.
- Return Processed and Refund returned Unpaid : It means, either your bank account details or address for refund are incorrect. Correct your details to get a refund.
- Return submitted and Under Processing : This status indicates that your ITR refund is being processed.
- Return Processed and Refund Paid : It says that your refund has been processed and also been credited to your bank account.
- Return Submitted and Verified : It says that the refund will be processed soon.
- Invalid Return : If the Income Tax Department finds that your ITR returns are invalid, then you will see this status while checking ITR refund status. You will have to file your returns again.
- Return Processed, Refund Adjusted Against Demand : This status appears if the IT department finds that you have any outstanding tax liability, and it may adjust the same with your refund claim.
If you have paid more tax in your annual ITR filing, claiming ITR refund status is necessary for you to get the extra amount refunded. To check your ITR refund status online, you need to follow certain steps depending upon the method you have chosen. Explore the above post to gain insight into how to check ITR refund status online and what are the meaning of different ITR status. Following these steps are a crucial part of income tax refund procedure in India that helps you obtain your refund online. Follow these steps to initiate your itr refund process before the due date!
FAQs
Q1: When will I become eligible for getting an income tax refund?
You will be qualified for an income tax refund if you have paid more tax than your required tax amount. As per the calculated amount, the refund is determined during ITR.
Q2: How long does the refund processing take?
Tax refunds are initiated by the Income tax authorities once you have e-verified your return. In general, the process of tax refund takes 4-5 weeks which means the refund amount will be credited in your account in 4-5 weeks.
Q3: If my income tax refund has been delayed, will there be any compensation for me?
Yes, if your income tax refund is delayed, you are entitled to receive 0.5% interest per month or part thereof on the amount that was due to you.
Q4: What is the deadline for claiming an income tax refund?
Individuals can claim an income tax refund by filing their income tax return. The deadline for ITR filing is July 31, 2024. If unable to file taxes by the deadline, individuals can submit a late return, known as a Belated Return, until December 31, 2024, allowing them to claim their tax refund.
Q5: What is the difference between an income tax return and an income tax refund?
Your income and tax details are reported annually in designated ITR forms through your income tax return. An income tax refund occurs when the taxes paid exceed the taxes owed, resulting in money to be returned.