If a taxpayer has paid more tax than required in a financial year, they may receive a refund. This is known as an income tax refund, claimable under Section 237 of the Income Tax Act 1961. The Income Tax Department must verify such claims made through Income tax return.
Form 30 is no longer required for income tax refunds. File and verify it online within 120 days either by hard copy or electronically.
The Income Tax Authority will credit the refund to the taxpayer's account after verification.
There are two common methods to check the income tax refund status:
To check the refund status through the e-filing website, taxpayers can follow these steps:
To check the refund status through the TIN NSDL website, taxpayers can follow these steps:
This status indicates that the filing and e-verification status couldn't be checked due to incorrect PAN or acknowledgment numbers. Taxpayers should verify the details entered and ensure accuracy.
This status indicates that the refund has been transferred to the taxpayer's bank account. If the refund is not received, please contact the relevant authorities for further assistance.
This status means the tax refund process is finished, and the refund has been sent to the taxpayer's account. If not received, taxpayers should reach out to the relevant authorities.
This status appears if the tax department determines that no refund is due after ITR processing. If a refund is believed to be warranted, taxpayers should review their ITR for possible discrepancies
Unable to Credit Refund: This status indicates that the refund could not be processed due to an incorrect bank account number. Taxpayers must apply for a refund reissue with the correct account number.
Defective Return u/s 139(9): This status indicates a defective or incomplete ITR. Check your income tax website account for the specific reason and rectify the return accordingly.
This status indicates a mismatch in the calculation between the department and the filed ITR. Taxpayers may receive an email from the department about the rectification request.
Errors or discrepancies in the tax return, such as incorrect bank account details or missing information, can lead to processing delays.
Complex tax situations, high-value refunds, or random selection for scrutiny may require manual review or verification by tax officials, resulting in delays.
Mistakes in the tax return, such as calculation errors or incorrect deductions or credits claimed, can cause delays in processing the refund.
Additional verification procedures may be conducted by tax authorities to ensure the taxpayer's identity, leading to delays in refund issuance.
If taxpayers have any outstanding tax dues or liabilities from previous years, the refund may be offset against those dues, resulting in a delay or partial refund.
During peak tax filing periods, when there is a high volume of returns to be processed, delays can occur due to the increased workload.
Recent changes in tax laws or procedures may require additional time for tax authorities to adapt their systems and processes, leading to delays in refunds.
The income tax department offers two methods for issuing refunds:
This is the fastest method, where the refund amount is directly credited to the taxpayer's bank account.
The income tax department no longer allows refunds to be issued through paper cheques.
For a refund, taxpayers need to validate their bank account and link it with their PAN. This ensures a faster refund process.
Filing Belated Returns for Refund
If you miss the deadline for income tax return, you can still claim your refund by filing a belated return under section 139(4). However, it’s better to file the ITR within the due date to avoid complications and ensure quick processing of the refund.
Tax refunds offer financial relief to taxpayers who have overpaid. Understanding the refund process and monitoring the refund status can help navigate the system. Always file your tax return accurately, monitor the refund status, and act promptly if any discrepancies or delays occur. This guide provides all the necessary information about the income tax refund.