Table of Contents
Learn how to claim your income tax refund and check its refund status. Also, get insights about the eligibility criteria and your TDS refund
Who doesn't relish the thought of getting a refund from the Income Tax Department? It feels like a small windfall, doesn't it?
But many taxpayers find themselves a little lost in the maze of procedures required to claim this refund. If you're asking yourself, "How to get income tax refund?" or "How to get TDS refund?", you've landed at the right place!
This guide will empower you with the knowledge you need to navigate your way to your refund, whether it's waiting in your mailbox or just a few clicks away.
So sit back, scroll on, and let's embark on the path to claiming your Income Tax refund!
Understanding the Basics of Income Tax Return Refund
Before we dive headfirst into the details, it's essential to understand exactly what an income tax return refund is.
A tax refund represents the reimbursement of excess tax you've paid to the government during a financial year.
The most straightforward method to apply for your tax refund is to make sure you declare your investments in Form 16. This includes life insurance premiums paid, house rent payments, equity investments, NSC, mutual funds, bank FDs, tuition fees, and so on.
Declare these while filing your income tax return and ensure you submit the necessary proofs.
Eligibility for Income Tax Refund
Let's clarify who can benefit from a tax refund before detailing the process of how to get income tax refund.
- Overpayment of Tax: If you've paid more income tax than your actual liability.
- Double Deduction of Taxes: If tax was deducted more than once or at a higher rate than necessary.
- Excess Advance Tax: If your advance tax payment surpasses your final tax liability.
- Over Claimed Tax Relief: If you've claimed more tax relief or deductions than you're entitled to.
- Excess Advance Tax Payments: If your advance tax payments exceed your actual tax liabilities.
- Foreign Tax Payments: If you've paid tax on income in a foreign country with a DTAA with India.
How To Claim Refund Of Income Tax Online
Step 1: Log into the Income Tax Portal
Navigate to the income tax e-filing portal and log in using your credentials. If you're a first-time user, you'll need to register using your PAN card number.
Step 2: Prepare Your Income Tax Return
Go to the 'Prepare and Submit ITR Online' section and choose the relevant ITR form for the current assessment year.
Ensure all income sources are declared, and eligible deductions are claimed. Enter all relevant details, such as those mentioned in your Form 16 and other income sources, if any.
Step 3: Calculate and Declare Your Refund
While filling out the form, you'll find a section for taxes paid and verification. Here, your tax liability will be calculated automatically.
If your tax paid (including TDS and advance tax) exceeds this liability, the difference amount is your refund, which will be automatically populated.
Step 4: Double-check All Information
Ensure all data entered is accurate if you're trying to figure out how to get an income tax refund.
Any discrepancies may lead to delays or denial of your refund.
Once the verification process is complete, an XML file will be automatically generated by the system.
Step 5: Submit Your ITR
Upload the . XML file onto the e-filing portal. Select 'Submit Return' to finalize your income tax return submission.
Step 6: Verify Your Return
The final step is to verify your return using one of the available methods, such as Aadhaar OTP, net banking, or by sending a signed physical copy of the ITR-V to CPC, Bengaluru.
Your return will be processed only upon successful verification.
How to Get TDS Refund
When it comes to the question of how to get TDS refund, the process is rather straightforward. The refund of excess TDS deducted can be claimed by filing your income tax return.
Once you have filed your ITR, the tax department will process your return and refund the excess TDS if your total tax liability is less than the TDS.
How Much Time It Takes for ITR Refund
One of the most common queries taxpayers have is, "How much time it takes for itr refund?"
After filing your ITR and upon successful verification, the Income Tax Department typically takes anywhere from a few weeks to a few months to process the refund.
Generally speaking, the refund process is expected to take approximately 20-45 days to complete following the e-verification of the income tax return.
Tracking Your Income Tax Refund
Once you've filed and verified your ITR, it's not a sit-and-wait game. Active follow-up is vital in ensuring your refund is processed promptly.
The online portal for filing tax returns also provides the necessary information on how to get an income tax refund. Let's explore the convenient ways you can track your income tax refund status:
Notification Alerts: The Income Tax Department regularly updates you via email and SMS about the status of your refund. If there's an issue requiring your attention, you will receive a notification.
Online Tracking for Direct Transfers: In cases where the refund is directly credited to your bank account, you can easily track its status online.
The IT Department uses methods such as ECS transfer or RTGS/NECS, all facilitated via the State Bank of India.
You can visit the NSDL-TIN website or the Income Tax Department's official website and select 'Status of Tax Refunds'.
Enter your PAN number and the relevant assessment year to access detailed refund status information.
Refund Not Received? Here's What to Do
If you're yet to receive your refund even 3 to 4 months after the 31st July deadline of a particular assessment year, it may suggest that your refund hasn't been verified yet.
If you encounter such a situation where your ITR refund is delayed, you can contact the Centralized Processing Centre (CPC) of the Income Tax Department at 1800 4250 0025 or 080-2650 0025 to get clarity on the reasons for the delay.
Alternatively, you can raise a service request on the Income Tax e-Filing portal to expedite the refund process.
By understanding the basics, filing your ITR accurately, and knowing the details regarding TDS refund, ITR refund time, and the online refund process, you can make the most out of your hard-earned money.
So, the next time you are dealing with your taxes, remember these points and ensure a smooth refund process.