Income Tax Refund Status

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Income Tax Refund Status : Check ITR Refund

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:

  • RTGS / NECS: In order to enable direct credit of the refund amount to the bank account of the tax payer, the taxpayer's correct bank A/c (at least 10 digits), MICR/ IFSC code of the bank branch and required communication address is mandatory.
  • Paper cheque: The standard paper cheques wherever issued require the current bank account no and the correct address of the tax payer as mandatory information.

How to Check Income Tax Refund Status Online?

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:

  • Assessment Year
  • Status
  • Reason (For failure of refund, if any)
  • Mode of payment

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.

How Income Tax Refund Is Processed

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.

How is the payment of Income Tax Refund done?

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:

1. Direct Credit of Income Tax Refund:

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.

2. Income Tax Refund through a Cheque:

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.

How To Claim Income Tax Refund?

 “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.

1. Always Remember the ITR (Income Tax Returns) Filing Date

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.

2. Keep all the important documents handy

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.

3. File your Income Tax Returns (ITR) 

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.

4. Know your refund amount 

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.

5. Send the ITR-V receipt to the Income Tax Department, Bangalore 

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.

6. Getting your ITR refund 

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.

In what different ways can claiming your income tax returns help you?

  • It helps you get loans easily and smoothly, as almost all the major banks ask for a copy of your tax returns before processing your loan request. 
  • Visa processing is one another benefit associated with ITR filing. Most foreign consulates ask candidates to present their ITR receipts (of at least the past 3 years) when they appear for the visa interview, especially if one is travelling to the UK, US, Europe or Canada. 

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.

How to Check Income Tax Refund?

  • You can easily check your Income tax refund status online on TIN-NSDL website.
  • Once on the website, you will need to login using your PAN card number and the year of assessment to check your Income tax status.
  • Once the income tax refund is processed by the IT authorities and sent to the refund banker, income tax status will reflect on their site within 10 days.

Checking Income Tax Refund Status on the E-Filing Website?

Here’s the process of checking the Income Tax Status on the e-filing website of the income tax department of India:

  • First things first, log on the official website of the income tax department of India (www.incometaxindiaefiling.gov.in) 
  •  Now, enter your PAN number, DOB, and password. Carefully verify the captcha code to log in to your income tax account.
  • Once you’re login to the website, click on the View Returns/Forms tab!
  • From the drop-down menu, select the Income Tax Returns option and pick the tax assessment year to check your income tax status.
  • Now click on your acknowledgment number.
  • A pop-up will appear on the screen. This pop-up will show you the entire timeline of income tax e-filing, right from the date when you filed the ITR to the date of verification/e-verification and the date when your income tax return was finally processed and the income tax refund was issued.

Checking Income Tax Refund Status on TIN/NSDL Website

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.

  • Visit their website and click on the services section. Then, click on Income Tax Refund Status.
  • Now enter your PAN number and select the year of tax assessment from the drop-down menu. Now, verify the Captcha code.
  • Now hit the submit button. You will now be able to see your Income-tax refund status.

Income Tax Refund Claim Procedure

  • If you want to claim the excess tax paid during a fiscal year, you can claim your tax refund while filing your ITR for that particular year. Remember, it is important to file your ITR before 31ST July, every fiscal year.
  • You can easily file your ITR by uploading the java utility form or excel sheet with all the required information in the online forms (if only you are eligible to file ITR 4 or ITR 1 form).
  • After filling the relevant ITR form, you need to click on the ‘validate’ This button is available on the verification sheet. Your tax refund will be then automatically calculated based on the data filled by you in the sheet. And your income tax status will be shown on the screen.
  • The total amount that reflect as the ‘refund’. This is the amount that you may claim as your income tax refund. The refund amount is then calculated by the IT department, after processing your ITR form and the verification of your refund claim.
  • Once the claim is processed, intimation is sent to you. Usually, the intimation shows up as one of the below mentioned messages:
    • Your ITR matches with the Income-tax department and you don’t need to pay any tax further for the current fiscal year.
    • Your tax calculation doesn’t match the income tax department and you are required to pay the tax demand”e. the additional tax.” Or it may read as “Your income tax refund claim has been accepted partially”, or “Your income tax refund claim has been rejected.
    • If your income-tax refund calculation matches with the calculation of the income tax department, then your refund claim will be accepted.
  • You will receive intimation over your registered email address, in case you’ve e-filed income tax returns. In addition, you will receive SMS message stating that the ITR for your PAN Card Number and Acknowledgement Number has been processed.
  • In case the Income-tax department requires more information or if your case is under scrutiny, you will receive a notice from the income tax department under a different section instead of section 143(1).

What are the Different types of Income Tax Refund Status? 

  • Not Determined- It implies that your ITR has not been processed and you need to check your income tax status after a few days.
  • Refund Paid- It implies that your income tax refund has been sent to you by a cheque or has been credited to your bank account.
  • Refund Failed: This status appears when the refund amount could not be credited to your bank account because of improper bank details, etc.
  • Refund Expired- The refund cheque issued by the Income-tax department is valid for a period of 90 days. If it expires, then you will have to get a refund cheque re-issued in your name.
  • The Cheque has been Encashed- This message reflects when the cheque sent by the IT department has been received by you and has been encashed.
  • Refund Returned - In case the cheque is sent back or returned to the Income-tax department, this status appears. In such cases, your refund will be canceled and you will have to send a request to re-issue your income tax refund.
  • Refund Adjusted against Last Year’s Outstanding Demand- In case you have a pending tax demand from the income tax department for the antecedent fiscal year, your income tax refund may get adjusted against your income tax refund. Before adjusting your income tax refund against last year’s tax demand, the income tax department sends an intimation notifying the same to the taxpayer.

ITR Refund Status Process

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:

  • Filing the return on time is the first and foremost requirement for claiming the Tax refund, by providing the adequate investment details.
  • File your return online so that it is processed faster and it doesn’t have to deal with bureaucracy.
  • Check your Income tax return status to see if it’s reflecting the tax refund correctly.
  • If your Tax return shows Tax refund, filing the return is all you need to do. The IT department will send the refund by post (cheque) or direct credit to your bank account.
  • You should provide proper details of bank account like MICR Code, bank account number and also the proper address to get the Tax refund amount directly credited in to your account.

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

FAQs for Income Tax Refund Status

Question 1: What is an income tax refund?

Answer: When paid income tax is more than the payable income tax, then the excess paid amount is termed as Income Tax refund. The excess payment is refunded by the department of Income Tax after Income Tax return is processed.

For instance, Mr. X has paid the income tax of Rs.15, 000/- but his payable Income Tax amount was Rs.10, 000 only. So, Mr. X will get the refund of Rs.5, 000 by the Income Tax Department in the form of Income Tax Return.

Question 2: Should I file a return of the Income Tax for getting a refund of the Income Tax?

Answer: It is mandatory to file an income tax return for getting a refund of the Income Tax. Upon filing the ITR, the Income Tax Department will process the return filed and pay the refund.

Question 3: How to check the status of an IT refund from the website of the government?

Answer: One can check the status of his/her Income Tax refund from the TIN website of the government. Mentioned below are the steps to check the status:

  • Go to the website https://tin.tin.nsdl.com/oltas/refundstatuslogin.html
  • Enter the details on the screen that appears.
  • Click ‘Submit’. The refund status will then be displayed.

Question 4: When does the Income Tax Department pay interest on the Income Tax refund?

Answer: In most of the cases, the taxpayers do not get the refund in due time. In these cases, the taxpayer gets an interest on IT refund. However, this interest over IT refund is not paid if the refund amount is under10% of the real Income Tax liability.

A) Refund of the excess TDS/ Advance Tax/ TCS paid: If the refund is for excess TDS/ Advance Tax/ TCS, then the interest will be calculated at the rate of 1.5%/ month or part of a month:

The situation when ITR is filed

The period when interest on ITR is paid

Example

The ITR is filed before or on the due date

Starting from the April 1st of the Assessment Year till Income refund is granted

Mr. A has filed his IT return by claiming a refund for FY 2017-18 (AY 2018 -19) on May 25th, 2018 i.e. before or on the due date. He received his refund on 03rd September 2018. However, he will get interest on ITR for six months i.e. from 2018 April to 2018 September.

The situation that is other than above

Starting from ITR filing date till Income Tax Refund grant date

Mr. B has filed an IT return claiming the refund for the FY 2017 – 18 (AY 2018 – 19) which is filed on August 25th, 2018 i.e. after the due date. He got his refund November 03rd, 2018 and he got interest on the refund for four months (from 2018 August to 2018 November)

B) Refund of Excess Tax (Self-Assessment) Paid: If the refund is paid for excess self-assessment tax, then the interest is calculated at 1.5%/ month or part of month rate from the date income tax return is filed or payment of tax is made, whichever is last till the date when refund is granted. For instance, Mr. C has paid the self-assessment tax on 20th May 2018 and file the IT return on 5th June 2018. His refund is received on the 05th of October 2018. In this case, he will get the interest on the refund on the Income Tax for five months from 2018 June to 2018 October.

Question 5: What are different statuses related to Income Tax refund?

Answer: By following the steps mentioned above, one can check the status of his/her Income Tax refund. However, one may get confused regarding the meaning of different statuses of an IT refund that is displayed. Below we are mentioning the meaning of the statuses that are displayed:

Status according to Income-Tax

Meaning

Not determined

This means that the income tax return is not processed still. In these cases, one has to confirm if his/her return is filed and verified. Mentioned below are various ITR – V Receipt statuses:

  • ITR – V e – verified: IT return are e – verified.
  • ITR – V Received: ITR – V is received at Bangalore CPC and is verified successfully.
  • ITR – V not received: When the Bangalore CPC does not receive ITR – V or is not e – verified. You must try the process of e – verification or send signed ITR – V to Bangalore CPC.
  • E- return for this AY is digitally signed: In this case, the return is filed with a digital signature and is verified with a digital signature.

Refund Paid

The department of the Income Tax has sent the refund to the taxpayer by Cheque or through direct debit to the given bank’s account number that the taxpayer has provided at the time of income tax return filing.

 

Actions that one should take:

If the taxpayer has received his/her refund, then it is good news. However, if it is not received and he/she has selected direct debit in the bank account option, then he/she has to check with the bank for any issues.

 

If one has opted for a refund through cheque, but has not received the cheque yet, then it is suggested to check the tracking reference number of the speed post for the cheque on the website of refund banker.

No Demand no refund

In this case, the taxpayer may have claimed the IT return but as per the department of IT, one may not be liable for any refund according to their calculation. This can happen if there is a mismatch in the calculation of TDS or/ and income details of the IT department and the taxpayer. It such situations, the department may issue an intimation under section 143(1) that shows the comparison between the details that the IT department has considered and submitted details. If there are some mistakes in the return, then it can be corrected by filing return rectification.

 

Action that one should take:

 

If there are some errors or if the taxpayer has forgotten to enter any claim deductions or income, then the return can be revised.

 

If one has received intimation from the IT department, then at first know the reason for the difference in the computation. If he/she agrees with the calculation of the department, then it is suggested to file a rectification of return after error correction.

Assessment Yearnot displayed in Refund / Demand Status

The e-return is not filed for the given PAN: One may have forgotten to file the ITR.

 

Action that one should take:

 

The Income Tax Return must be filed immediately.

 

Refund Unpaid

This means that the IT department has paid the refund to the taxpayer but either his/her address is provided bank details are incorrect or address is wrong, because of which the refund processing was failed.

 

Action that one should take:

 

Visit the refund banker’s website and provide the PAN and AY for which one wants to get the details of refund failure and correct it by updating these details on the website of the IT department and then rise a request for refund re-issue.

 

Demand determined

It means that the IT department has rejected the refund claim of the taxpayer and for the unpaid taxes it has raised on outstanding demand. In such a case, the taxpayer should get a notice from the IT department with the exact amount of outstanding demand and with the reason. This as well can be seen in intimation under section 143(1). If there is a difference between the calculated amount by the IT department with the details that are given in return, then the same can be corrected by filing a return rectification.

 

Action that one should take:

 

It is suggested to refer the intimation and know the reason for the difference. To be on the safer side, the taxpayer is suggested to cross-check with his/her e-filing record for verification of the information.

 

If one finds that his/her request for refund had errors, then he/she has to pay the taxes that are determined by the department of Income Tax within the time that is mentioned in the intimation.

 

If the taxpayer thinks that the IT department has made a mistake, then he/she should update/ change his/her information needed and then file a return rectification to support his/her refund claim.

ITR processed refund determined and sent out to Refund Banker

This says that the department of the IT has processed the return and request for the refund is being generated. In this case, the details should be given to the bank in charge for refund to process the same. Checking the status after some days to learn it with the help of the bank in charge for refund.

 

Action that one should take:

 

The service of the refund banker will provide the latest details related to refunds that can include error messages if there are incorrect details of the bank, tracking of speed post, etc. Therefore, check the status again after a few days.

Contact Jurisdiction Assessing Officer

This means that the Income Tax Department requires some certificate/information related to IT return. It is suggested to contact Jurisdiction Accessing Officer of the region.

 

Action that one should take:

 

Once the taxpayer has found the Assessing Officer, contact him/her through email, post, or telephone.

 

Question 6: My IT Refund went to my old house address and thus got returned? How can I get it back now?

Answer: In this case, you have to file a request for a refund reissue and should update the address in the Income Tax e-filing website.

Question 7: How would I be able to get my IT Refund? Whether it will directly be credited into my bank account?

Answer: All the income tax refunds that are below Rs.50, 000 are credited directly to the bank account of the taxpayer that he/she provides at the time of Income Tax return filing. However, Income Tax Refund that is more than Rs.50, 000 is given through cheque which is sent to the postal address of the taxpayer.

Question 8: I got an email from the IT Department that my refund is adjusted against some earlier demand. What should I do?

Answer: This situation occurs because of the adjustment of refund made by the IT Department against some earlier demands. The intimation for the same will be sent to you in such cases u/s 245 of IT Act. However, you can disagree with the adjustments that are proposed.

Question 9: If a taxpayer has submitted the ‘Refund Reissue Request’, then how will he/she know the status of his/her request?

Answer: To know the status of this request, one has to follow the below steps:

  • Login to the website of ‘Income Tax e-filing’.
  • Go to ‘My Account >>Service Request’.
  • In Request Type, select ‘New Request’.
  • In Request Category, select ‘Refund reissue’.
  • Click ‘Submit’.

Question 10: Is the refund of the IT taxable?

Answer: The IT refund is not taxable because it is only tax's extra payment that is refunded by the department of the Income Tax. However, the interest on this refund is taxable as it is considered an extra source of income.

Question 11: What is the Income Tax Department’s helpline number for queries related to refund?

Answer: The IT department can be contacted on 1800 103 4455 or +91 – 80 – 46605200 (From Monday to Friday 8:00 AM to 8:00 PM) for solving refund, rectification, intimation, and other income tax-related queries.

Question 12: What is the meaning of Income Tax Refund reissue request and what are the steps to submit or raise it?

Answer: If the taxpayer has received an intimation from the department of Income Tax or Refund Banker that processing of refund is failed because of incorrect details of bank, then one has to submit a request for refund reissue in the website of IT Department login and update the account number of the new bank or correct the existing if required.

Question 13: What are the steps to check the refund status through myITreturn portal?

Answer: Follow the below-mentioned steps to check the status of refund via myITreturn portal:

  • Go to the page for Refund Status and signup/ login or if already logged in through the home page, then go to the service of ‘Check Refund Status’.
  • Add a member or click on the member to continue the process.
  • Choose Assessment Year and click ‘Check Refund Status’ and the refund status on the screen.

Question 14: My refund of Income Tax is not processed still. What is the process to escalate it?

Answer: If your income tax return is e-filed and you have not got your refund of the Income Tax within the expected time, then it is suggested to check whether IT return is verified or not. You can also check the status of the mobile app, which is completely free. The return of the Income Tax will not be processed unless the electronic verification is done or ITR – V is sent to Bangalore CPC.

If there is a delay even after verification of ITR – V, then it is suggested to follow up with the CPC of the IT Department through 1800-103-4455 or +91-80-46605200 (From Monday to Friday from 8 AM to 8 PM).

If the return of the Income Tax for the previous year pertains, where the return was filed manually, then it is suggested to write a letter to Jurisdictional Assessing Officer. It is suggested to attach the copies of the Income Tax return with this letter.

Question 15: The Income Tax is deducted from my salary, but payable tax at the year-end is less than the TDS amount or NIL. What to do?

Answer: In this case, you can claim the refund of the Income Tax, of excess or entire amount of the TDS is deducted by filing the return of the IT.

Question 16: My IT Return is processed by CPC with less Income Tax or raising a demand refund. Whom should I approach for the rectification?

Answer: As long as the Income Tax return for relevant AY is with CPC, the online application for rectification can fail.

In case when you’re processed Income Tax Return is transferred to the Assessing Officer, then it is suggested to approach this officer with the rectification application on the paper.

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