How to Get Income Tax Refund And Check Status Online. In the previous article, we have given How to Calculate Advance Tax, Due Dates and Payment. Today we are providing the details of Income tax refund I;e Meaning, How to get the refund, How to check refund status online etc. Income tax refund means, the return by the government of excess taxes paid by an individual. If during the course of a calendar year, an individual paid more taxes than they actually owed (after taking into consideration income tax, withholdings, tax deductions or credits, and other factors), then he or she will receive a tax refund after filing his or her taxes for the year.
Refund Banker :
The ‘Refund Banker Scheme,’ which commenced from 24th Jan 2007, is now operational for taxpayers assessed all over India (except at Large Taxpayer Units) and for returns processed at CPC (Centralized Processing Centre) of the Income Tax Department at Bangalore.
In the ‘Refund Banker Scheme’ the refunds generated on processing of Income tax Returns by the Assessing officers/ CPC-Bangalore are transmitted to State Bank of India, CMP branch, Mumbai (Refund Banker) on the next day of processing for further distribution to taxpayers.
Refunds are being sent in following two modes :
- RTGS / NECS: To enable credit of refund directly to the bank account, Taxpayer.s Bank A/c (at least 10 digits), MICR code of bank branch and correct communication address is mandatory.
- Paper Cheque: Bank Account No, Correct address is mandatory.
Taxpayers can view status of refund 10 days after their refund has been sent by the Assessing Officer to the Refund Banker – by entering ‘PAN’ and ‘Assessment Year’ below.
Other Refunds :
Status of ‘paid’ refund, being paid other than through ‘Refund Banker,’ can also be viewed at www.tin-nsdl.com by entering the ‘PAN’ and ‘Assessment Year’ below.
‘Refund paid’ status is also being reflected in the ‘Tax Credit Statements’ in Form 26AS.
How to Check your Income Tax Refund Status
Please enter your Permanent Account Number and Assessment Year for which status of refund is to be tracked.
Click Here to check your refund status.
Refunds can be checked on the website https://tin.tin.nsdl.com to know the status of your refund. You need to enter your PAN and the assessment year to which the refund relates in the relevant fields. If you file your return on 31st July 2016 then the Assessment Year for you is 2016-17 and so on.
How to Claim Income Tax Refund?
Tax refund can be claimed by filing your return of income. Usually the return filing due date each year is 31st of July each year unless extended.
How does a tax refund arise?
Refund of tax arises whenever there is excess deduction of taxes from your salary. In case of a salaried individual, this can happen when he/she has failed to declare some investments made by him / her which led to excess tax deduction.
If you have filed a return and refund has been claimed but not received
In case you have filed your return and a refund is due but not received then you have to login to Income Tax website and login to ‘My Account-My returns/Form’ to know the update on the status of your return. The refund can be in process since because the return hasn’t been processed by the IT department yet or IT department has decided on a ‘no refund due’ after processing. You might not receive the refund even if your contact details like bank account number or postal address are wrong or you were not at home when the cheque was delivered to you.
If you have a refund re-issue request
In case you have a refund re-issue request then you need to login to ‘My Account-Refund Re-issue Request’ and give the necessary details for mode of payment like ECS or cheque and changed or corrected address.
This needs to be done when the refund is returned due to error in house address, bank details or house locked when cheque is received through post.
The refund status can be checked after 2-3 weeks of the ITR being filed and refund can be received in 4-6 months.
Am I eligible for interest on my tax refund?
Yes. You are eligible for an interest on the refund payable to you. Interest is calculated @0.5% per month or 6% per year from the first day of the Assessment Year until the date when the refund is paid to you. In this case even a part of a month is considered as full month for interest calculation purposes.
E.g., if you have claimed an interest of Rs. 3,000 for AY 2015-16 and you received the refund in the month of February 2016 then the interest will be calculated from April 2015 to February 2016.
However, it should be noted here that interest is payable only when the amount of refund due is more than 10% of the tax payable by tax payer.
Is the refund taxable?
Refund will not be taxable in your hands as it is only the receipt of excess taxes and not income earned. Income earned is taxable and not tax refunds.
However, if you have received interest on tax then this interest portion is taxable according to slab rates applicable to you. This is included as income of the year in which the refund is received.
In order to claim tax refund is it necessary that tax return should have been filed within the due date?
No. You can claim tax refund even if you have filed a belated tax return.
Generally, how long does it take to receive the refund?
The refund is processed within 4 to 8 months from the date of e-filing your return online. It takes longer if your file your returns physically.
What to do if you do not receive your tax refund?
You need to contact the Central Processing Centre of the Income Tax Department on the numbers 1800 4250 0025, and 080-2650 0025. This number is provided on the government’s e-filing portal.
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