A claim for Income Tax Return (ITR) often leads to a refund if a taxpayer has incurred more tax in advance than that for which she/he is finally liable. Indian Income Tax Department releases refunds upon checking the return, and taxpayers can check the refund status online. Being aware of the mechanism of the refund process, timelines involved, and methods adopted for tracking ensures that the refund reaches the rightful owner without untimely postponement.
This blog contains a step-by-step guide to verifying the refund status of an income tax return, including eligibility, how to track refunds, and reasons why refunds are delayed.
Introduction
An income tax refund is a situation where the tax deducted at source, advance tax, or self-assessment tax paid is more than the actual tax payable. The Income Tax Department refunds after verifying the ITR, and if found genuine, the refund is transferred directly to the bank account of the taxpayer through ECS (Electronic Clearing Service).
With the launch of online refund tracking and e-filing of taxes, taxpayers can now track their refund status on the e-Filing portal or the NSDL website with ease. But refunds are delayed at times because of processing errors, wrong bank account details, or mismatch in tax calculations.
Who is Eligible for an Income Tax Refund?
A taxpayer qualifies for an income tax refund when they have overpaid their tax liability. This may occur as a result of one of the following-
- Excess Deduction of TDS – If there was an over deduction of Tax Deducted at Source (TDS) by an employer or bank, a refund can be claimed by a tax payer.
- Advance Tax Overpayment – In case the taxpayer overpaid advance tax compared to their actual liability, the excess is refunded.
- Eligible Deductions and Exemptions – Taxpayers who have claimed tax benefits in the form of Sections 80C, 80D, or HRA exemptions might end up paying less in final tax liability compared to what has been paid.
- Foreign Taxation of Income – In case a taxpayer is taxed in India and some other country on the same income under Double Taxation Avoidance Agreement (DTAA), then he can get the refund.
- Wrongful Payment of Tax – In case of payment of self-assessment tax or excess tax by a taxpayer mistakenly, they can get the refund while submitting their ITR.
After the Income Tax Department verifies the claim of refund, the amount of excess tax is credited to the registered bank account of the taxpayer.
How to Check Refund Status of an Income Tax Return?
The income tax refund status can be followed by taxpayers from several online web sites offered by the Income Tax Department and NSDL (Tax Information Network). The most prevailing ways are-
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Through the Income Tax e-Filing Portal
Taxpayers must login to www.incometax.gov.in by using their PAN and password, then click on ‘e-File’ > ‘Income Tax Returns’ > ‘View Filed Returns’. In the ‘Status’ column, under the appropriate Assessment Year (AY), the status of refund will be indicated.
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Through the NSDL (TIN) Website
Taxpayers can visit NSDL’s refund status webpage, provide their PAN, Assessment Year, and Captcha Code, and click ‘Submit’ to see the tax refund details.
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Through Bank Account SMS or Email
As the refund is being processed and credited, taxpayers receive an SMS or an email notification from their bank verifying the transaction.
In case the status of refund is “Refund Issued” but no credit has been made, taxpayers must check their bank account details and approach the CPC Bangalore helpline for further help.
Common Refund Status Messages and Their Meanings
- Refund Issued – Refund has been processed and credited to the bank account successfully.
- Refund Failed – The bank account information given was inaccurate, or the account is not active.
- Refund Sent Back to CPC – The bank declined the refund because of a problem (wrong IFSC code, account closed, etc.).
- Return Processed with No Refund – The tax department processed the return, but no refund is due (possibly due to outstanding tax dues or recalculations).
- Return Under Processing – The tax return is being processed; the refund is awaiting.
What to Do When Your Tax Refund Has Been Delayed
If the taxpayer has not received the refund in the expected period, the following can be done-
- Check Bank Account Details – Make sure that the registered bank account is accurate and pre-validated on the e-Filing portal.
- Verify Outstanding Tax Dues – If the tax payer has outstanding tax dues, the refund is liable to be offset against the same.
- Request Refund Reissue – If the refund was not successful because of bank-related problems, request reissue through the e-Filing portal.
- Reach out to CPC Helpdesk – Call 1800-103-0025 or mail at refund@incometax.gov.in for assistance.
Conclusion
An income tax refund is a fiscal relief for taxpayers who have remitted more tax during the financial year through TDS deductions, advance tax payments, or tax-saving exemptions. Refunds are given by the Income Tax Department through electronic means, which is simple and transparent for taxpayers. Through the provision of online tracking through the e-Filing portal and NSDL website, taxpayers can easily track the status of their refunds and take action if there are any delays.
For evading issues, it is required to file income tax returns properly, provide proper bank account numbers, and verify filings on time. Delay in refund typically arises due to incorrect bank details, outstanding tax payments, or processing faults, which can be rectified by filing reissue requests for refunds or calling the helpdesk of CPC.
By knowing the refund eligibility, tracking procedures, and resolution procedures, taxpayers can be sure to receive their refunds without undue delay or inconvenience. Correct filing of returns and tax compliance can help individuals and businesses maximize tax benefits and avoid financial hardship.
References
The Income Tax Rules, 1962
The Income Tax Act of 1961 (Act No. 43 of 1961)
