Income Tax Refund - How To Check Income Tax Refund Status For FY 2022-23 (AY 2023-24)?

 

• What is an Income Tax refund?

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.

• Claiming an income tax refund

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.

• Checking Income Tax Refund Status

 

There are two common methods to check the income tax refund status:

 

1.  E-Filing Website
2. TIN NSDL Website

 

1.  E-Filing Website

To check the refund status through the e-filing website, taxpayers can follow these steps:

1. Visit the income tax department's e-filing website.
2. Log in with your User ID and password.
3. Click on the "View Filed Returns" tab under the e-file section.
4. Select the relevant assessment year and click on "View Details" to check the refund status.

 

2. TIN NSDL Website

To check the refund status through the TIN NSDL website, taxpayers can follow these steps:

1. Visit the TIN NSDL website.
2. Enter your PAN number.
3. Select the assessment year for which you want to check the refund status.
4. Click on the "Proceed" button to view the refund status.

 

• Income tax refund status messages. Here are some common statuses and what they meanings:

 

1. No Result Found

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.

 

2. Refund Already Credited

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.

 

3. Refund Cheque Encashed

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.

 

4. Refund Not Determined

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

 

5. Unable to Credit Refund

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.

 

6. Defective Return u/s 139(9)

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.

 

7. ITR Processed but Need to Submit Rectification Request

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.

 

8. Return Submitted. Processing Rights Transferred to Jurisdictional Assessing Officer:

Return Submitted. Rights Transferred to Assessing Officer: The return will be processed by the Assessing Officer. Contact the AO for more information.

 

• Reasons for Income Tax Refund Delays

 

1. Incorrect or Incomplete Information:

Errors or discrepancies in the tax return, such as incorrect bank account details or missing information, can lead to processing delays.

 

2. Manual Processing:

Complex tax situations, high-value refunds, or random selection for scrutiny may require manual review or verification by tax officials, resulting in delays.

 

3. Tax Return Errors:

Mistakes in the tax return, such as calculation errors or incorrect deductions or credits claimed, can cause delays in processing the refund.

 

4. Taxpayer Identity Verification:

Additional verification procedures may be conducted by tax authorities to ensure the taxpayer's identity, leading to delays in refund issuance.

 

5. Outstanding Tax Dues:

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.

 

6. High Volume of Filings:

During peak tax filing periods, when there is a high volume of returns to be processed, delays can occur due to the increased workload.

 

7. Change in Tax Laws or Procedures:

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.

 

• Different Methods of Refund Issuance

 

The income tax department offers two methods for issuing refunds:

1. RTGS/NECS:

 This is the fastest method, where the refund amount is directly credited to the taxpayer's bank account.

 

2. Paper Cheque:

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.

 

Conclusion

 

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.