The Income Tax Department allows individuals to claim a refund for depositing extra tax. An individual can claim the same online using the Income Tax Department’s e-filing portal, www.incometaxindiaefiling.gov.in. Income Tax regulations mandate the Filing of income tax for individuals earning an annual income of Rs.2.5 lakh or more. For Senior citizens (individuals with age between 60-80 years) and very senior citizens (individuals with age above 80 years), the limits are Rs.3 lakh and 5 lakh respectively.
Latest Update
- The CBDT has extended the deadline for processing refund claims for the assessment year 2018–19 to 2020–21 until January 31, 2024. Read PDF
When Do you Get Qualified to Claim an Income Tax Refund?
Below mentioned would be the situations when an income tax refund can be claimed:
Excess TDS deducted –
- The employer deducts taxes post acknowledging different documentary proofs which have been furnished via him via an employee related to section 80C investments, medical insurance premiums under 80D, and others. But, there are some examples in which the employee is lost to file the evidence for a few such investments prior to the finish of the specific fiscal year. As the employer goes forward with a higher deduction. But, the employee is able to claim the advantage of such investments during furnishing their income return and hence claim a refund of the furnished higher taxes,
- Some of the people might not come beneath the taxable bracket which renders that their income would be less than Rs 2.5 lakh. Therefore, they would not require to file any taxes until taxes would have been deducted from their income. It is like that as they can claim a refund of the excess tax deducted.
From your interest income, the extra TDS was deducted – In some cases, the banks might deduct TDS on interest made on FDs or bonds if the amount is more than the threshold limit fixed under the income tax act.
Extra advance tax paid – The advance tax file according to the self-assessment was exceeding the actual tax liability for the provided financial year. During income tax return filing this advance tax can be claimed as a refund.
The assessee might be asked to file the additional taxes – The income-tax officers might be called for some more taxes to get furnished via the assessee’s income in the income tax proceedings. These additions might be deleted by the appeal of the council. As per the complaints, the assessee will be refunded the taxes he would have filed.
Double taxation occurs when income is taxable in more than one country – If an individual is a citizen of one country but obtains income from another country. But, India has entered into a Double Taxation Avoidance Agreement (DTAA) with many countries in which the agreement permits claiming an income tax refund when you are a non-resident Indian and your income is taxable in other countries. Any payment of extra tax could be claimed as a refund beneath this DTAA agreement.
Simple Steps to Claim the Income Tax Refund Online:
Step 1: Log in to the Income Tax’s e-filing portal www.incometaxindiaefiling.gov.in. with your user id, password, and captcha.
Step 2: Go to the ‘My Account’ tab on the top left side of the screen near the ‘Dashboard’ tab and choose the ‘Service Request’ option. Select “New Request” under the request type field and choose “Refund Reissue” as the Request category
Step 3: All the refund failures for each AY will be displayed. Click on submit to request a refund issue for a particular year.
Step 4: Fill in the details like Bank Account No., Account Type, IFSC Code, Bank Name and Address.
The refund will be credited to your bank account after successful processing.
Read Also: Easy 5 Methods to Verify Income Tax Return Online & Offline
Steps to View Refund/Demand Status
The tax department will process the refund once it is determined. There are two ways to check the refund status:
- The income tax e-filing portal
- The NSDL website
Using Income Tax e-filing Portal
Step 1: Log in to the Income Tax e-filing portal www.incometaxindiaefiling.gov.in with your user id, password and captcha.
Step 2: Go to the ‘My Account’ tab and click on “View e-filed Returns/forms”. You can check the refund status by clicking on the acknowledgement number of the relevant A.Y.
Using NSDL Portal
Step 1: You can check the refund status on the NSDL website by clicking here
Step 2: You will see the following screen where you can fill in your PAN, AY, and captcha, and click on ‘Submit’.
A screen will appear showing the refund status as shown below once this step has been completed.
Steps to Submit Response for Income Tax Refund with New Process
Some taxpayers have received an email stating that their refund has been processed and the refund amount will be credited to a pre-validated bank account, but the money did not come into their account even after so many days. So, such taxpayers must be wondering why the money did not come into their account even after so many days.
The Income Tax Department has launched a new procedure to submit a response for the Income Tax Refund. The taxpayer will have to submit a response that the refund claim calculated by the department is correct as per its calculation otherwise a revised return is being filed to claim the correct refund amount.
Simple Steps to Procedure to Submit IT Refund Response with New Process:
- Follow the step-by-step procedure to submit a Refund confirmation response:
- Login to the e-filing portal i.e. incometaxindiaefiling.gov.in
Navigate to ‘Worklist’ and then click on the ‘For Your Action’ option. - Choose one of the following options
- “The claim of refund is correct to the best of my knowledge”
- “Return of income is being revised wherein correct claim of refund shall be made”.
- The user will see a success message confirming the submission of a response for refund confirmation
After performing all the steps, Refunds only will be issued to the bank accounts which are pre-validated. In case of failure of refund, the taxpayer can extend the service request in the e-filing portal on receiving communication from CPC.
If the taxpayer does not have any pre-validated bank accounts, he will be directed to Pre-Validate the bank account screen. Here, the taxpayer should enter all the relevant details of the bank account where he wants to get the refund and click the ‘Pre-Valid’ button to proceed to submit the request.
The concerned bank will validate the request, and the same bank account will be considered for automatic issue refunds. This account will now be displayed in the e-filing portal under pre-recognized bank accounts.
If pre-verification of the account fails, the taxpayer will be notified by the CPC. The taxpayer is required to re-submit the request for re-issue or pre-verification of the bank account.
