Many people are very ignorant about their income tax refunds. Even people are unaware that they can check status of their income tax refund online. It is very easy to check you income tax refund online as you just need your permanent account number and the assessment year on the site to access the current position of the tax refund. The tax refunds whenever applicable are made in two different means to all the tax payers:
An online facility to track the Income Tax Refund status is offered by the Income Tax Department.
Taxpayers can check the status of their refund 10 days after they send the refund. You will be required to enter your PAN number and choose the year of assessment to track.
You will have to finish with the e-filing process to obtain your Income Tax Refund.
In order to check your Income Tax Refund Status Online, you are required to follow the steps below:
Step 1: Log in to the official website of e-filing with User ID, Date of Birth or Date of Incorporation, Password and Captcha.
Step 2: Visit ‘My Account’ and click on ‘Refund/Demand Status’.
Step 3: The details below will be displayed:
If the actual tax paid by a taxpayer to the government is cumulatively more than the TDS, self-assessment tax and the advance tax, then that taxpayer is eligible to get an income tax refund.
Once Income tax return is filed by the taxpayer, it is processed by the IT (Income tax) authorities at CPC, Centralized Processing Centre in Bengaluru. While processing the income tax return forms, if any tax reimbursement is payable to the taxpayer, the income tax refund orders are generated and transferred to the IT refund banker.
Usually, the Income-tax refund amount is credited directly in the taxpayer’s bank account based on the details furnished by the taxpayer in the Income tax return. In addition to the account transfer, the tax refund can also be paid to a taxpayer by:
Income tax refunds are paid either directly through NECS/RTGS or by via a cheque. Make sure that you mention complete account details – bank account number, IFSC of the bank branch and your communication address. It will enable easy transfer of income tax refunds directly to your bank account.
In case your bank account details are unclear or improper, the refund is paid through a cheque to the a/c number mentioned in the income tax return.
“Death, taxes and childbirth! There's never any convenient time for any of them.”
― Margaret Mitchell
It doesn’t matter how inconvenient it is for all of us to pay taxes, but getting a tax refund is something we all eagerly look forward to. In fact, many of us view it as a bonus paid by the government.
However, the irony here is that it’s your own money that you overpaid as taxes, and now have to claim by filing a tax refund.
Quite often, most people end up paying taxes that are higher than their liability, making them eligible for tax refunds. Although, the IT department has fixed the tax rates for individuals based on their income slabs, people often end up paying excess tax due to various reasons.
Sometimes, it might be due to them failing to make their investment declarations on time, or because taxes paid in advance due to an anticipation of a hike in income which didn’t materialize, etc. Besides these obvious reasons, there are also some other scenarios where tax may be deducted from your investment sources such as Fixed Deposits, etc.
The Income Tax Department allows such people to claim a refund for the extra tax we have paid, which is known as Income Tax Return (ITR). Since one’s hard-earned money is at stake, it is really important for one to be clear on the whole process of how to claim her/his tax refund from the Income Tax department.
In this article, we will discuss the process to claim income tax refunds.
One can claim her/his income tax refunds while filing her/his ITR for that particular financial year. Usually, the deadline for filing the ITR is July 31st of every financial year. One should try to avoid the last minute rush and file her/his ITR well before the given deadline. It is best to avoid any hassles when the deadline is close.
It’s always recommended to keep all the required documents handy before you start the process of your ITR filing. This list of relevant documents includes salary statements, bank statements, business income statements (for businessmen), Form 16 (either from your employer/bank) to support your investment, other investment proofs and supporting documents, interest paid certificates, 26AS tax credit extract, etc.
The next step is to, finally, file the ITR. To file your Income Tax Returns, you have to start by filling up a form where you are required to fill-in details such as your name, address, your gross salary, your taxable income, TDS (if applicable), refund due, total due, etc.
This form will record all your financial information for that particular financial year. You can always seek help from a financial advisor/Chartered Accountant to file the ITR on your behalf. Or else, you can do it yourself as the form is self-explanatory.
After submitting the form, you can find out how much refund you’re entitled to in the refund column. To get an idea of your refund amount, you need to, first, click on the ‘Validate’ option, which is available on the ‘Taxes Paid and Verification’ page. Note down your refund amount and also save a copy of the ITR-Verification receipt generated.
The amount displayed in the refund column is what you need are entitled to. To get the refund of this amount, you need to sign the ITR-V receipt and post it to the Income Tax office. The address of the Income Tax office is already mentioned on the form.
Once your ITR-V form reaches the income tax office, you will receive a text message notification from them. However, please be careful and accurate, as the IT department will cross-check the figure sent by you.
Once they have verified the amount, they will process your application and the amount will be credited to your bank account. In case they find a discrepancy between the amount shared by you and the amount calculated by them, your application will be rejected.
You will be notified in either of the cases. All the proceedings will be communicated to you, by text message and/or email on your registered phone number and email address, respectively. The refund can take anything from 1 month to 4 months to get credited to your bank account.
Producing your ITR receipt shows that you have a steady source of income in India and hence, there are strong chances that you will return to the country for good.
Your ITR-V receipt also helps you buy a life cover, if you are planning to buy one in the range of Rs 50 lakhs or more. This is because; your income is one of the most important deciding factors for the insurance companies to calculate the sum insured of your term cover.
Here’s the process of checking the Income Tax Status on the e-filing website of the income tax department of India:
National Securities Depository Limited (NSDL) governs The Tax Information Network (TIN) on the behalf of the Income Tax Department of India. TIN acts as the repository of countrywide tax-related information.
Most of us wait for the last moments to make our tax investments which leads to incorrect disclosure of investments and further you end up paying more taxes. This extra income tax paid in addition to actual tax liability leads to a situation of tax refund. The process of tax refunds has been a time consuming process over the years. The whole process going online even has not helped a great deal. But if you are expecting a tax refund then it is important to take a few steps which will help you in expediting the process. You can check and provide accurate bank account details like bank account number and also the proper address to get the tax refund directly credited to your account.
In case of excess deduction of tax at source, claim of refund of such excess Tax deduction at source (TDS) can be made by the deductor. The excess amount is refundable as per procedure laid down for refund of Tax deduction at source (TDS) .The difference between the actual payment made by the deductor and the tax deducted at source or deductible, whichever is more will be treated as the excess payment made. This amount is to be first adjusted against any existing tax liability under any of the Direct Tax Acts. After meeting such liability, the balance amount is to be refunded. Below is the tax refund process:
Opt for direct credit so that you don’t have to deal with postal delays.
|You may like to Read: How to e filing income tax|