If you paid surplus tax in the preceding financial year to the government, then by filing the Income Tax Returns (ITR) you can claim refunds. Surplus tax is generally paid when in a financial year; you pay advance tax, Tax Deduction at Source (TDS) or self-assessment higher than your tax liability.
After processing your ITR, if the department of income tax determines that a refund is to be paid to you, then a message is sent to you via email or SMS. The message includes information about the refunded amount which will be credited to your account, alongside the sequence number of the refund. You will receive intimation under the section 143(1) of Income Tax Act.
The State Bank of India processes the refund and sends it to the respective taxpayers account either by crediting it directly, or via issuing a demand draft or cheque, and sending it to the registered address of taxpayer’s. It is important to note, that while filing the income tax return form, you must fill all the details of your bank account correctly as you will receive the amount in the same account.
You can keep of track of your income tax refund status in two ways i.e. by visiting the website of income tax e-filing, and on the Tax Information Network NSDL website.
Let’s take a look at the process to check your income tax refund status.
On The Income Tax e-filing Website
In order to check the income tax refund status, you will need to follow the below-mentioned steps:-
- First and foremost, you must visit the official website of www.incometaxindiaefiling.gov.in
- In order to log in to your account, enter all the required details like Password, PAN, DOB and captcha code.
- Select the option of view forms/returns.
- Choose the option ‘income tax return’ in the drop-down menu, and select the appropriate year of assessment for which you would like to check your income tax refund status.
- As mentioned in hyperlink, select your acknowledgment number.
- The screen will display a pop up in which all the details of tax filing will be shown like when you filed your ITR and when you verified it, date of issue of refund, date of process completion, etc.
- Along with all these, there are a more details that are shown like the assessment year, reason for failure, status, and payment mode.
On the TIN NSDL Website
On the other hand, you can also check your income tax refund status on the website of TIN NSDL. Once the IT department processes the refund to the bank, it is available on the website for 10 days. The process to check the income tax refund status is very simple and hassle-free, all you are required to do is to follow these simple steps to do so:-
- Visit the official website https://tin(dot)tin(dot)nsdl(dot)com/oltas/refundstatuslogin.html
- Submit the details of your PAN card.
- Choose the appropriate year of assessment for which you wish to cross check the status of your income tax refund.
- Once you are done, click on the submit button after entering the code of captcha. You will be shown a message on your computer screen according to the refund status of your income tax.
Depending on the refund status, the message displayed on the screen can be as follows -
- Refund Status-Expired:
Expired refund status means that the cheque refund that you received, was not submitted to the bank in the given time period. In order to receive the payment successfully, it is very crucial to submit the cheque within 90 days to the bank. In case of expiry of the refund status, you will be required to submit the request for ‘refund re-issue’ on the e-filing website.
- Refund Status- Refund Return: this happens due to two reasons-
- If the IT department sends the refunds via Electronic Clearing Service, the transfer of payment will fail, in case you have provided the incorrect bank details.
- In case you provide the incorrect address of your residence, or if your house is locked at the time of delivery, then the demand draft or cheque will be returned.
- Direct Credit Process Failed: This means that the refund of income tax through direct credit had been initiated by State Bank of India, but declined due to reasons like:-
- You have closed that bank account.
- The account has been left inactive for a very long time.
- It is a loan, fixed deposit or Public Provident Fund account.
- Non-Residential Indian account.
- The Bank account holder is no more.
- The details of the account are not correct.
- The Process of Refund Through NEFT/NECS Fails:
In case you provide the wrong account number or IFSC code at the time of filing your return, the process of income tax refund through NEFT/NECS fails.
- Refund Status-
The Previous Years’ Outstanding Demands are yet to be adjusted: this means that under section 245 of Income Tax Act, the department of income tax has the full right to adjust the refund of the current year against the outstanding tax amount of the preceding year of assessment both in part or full. However, such actions can only be taken if the income tax department provides a warning in written to the taxpayer as regard to the action decided to be taken.
Request of Refund Re-issue
If, you want to submit the request for refund re-issue in line for to any of the above mentioned faults, you can sort out by following these simple steps:
- Go to the official site of income tax e-filing www(dot)incometaxindiaefiling(dot)gov(dot)in
- Select ‘my account’ tab and choose the option of a service request.
- Choose the option of the ‘new request’ from the request category and click ‘refund re-issue’.
- You will be redirected to a new page which will showcase all the details like return type, PAN, assessment year, communication reference number, acknowledgment number plus response.
- Click on the ‘submit’ button.
- It is important to submit the bank details and details of address.
- Once you are done with this, use the electronic code for verification and complete the process. You can also proceed with the verification via Digital Signature Certificate (DSC).
Filing income tax return is important for every individual, irrespective of whether your salary comes within the tax filing bracket or not. In case you have paid excess tax to the government, then you always have room to claim the refunds just by following these aforementioned steps.