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How to Claim Income Tax Refund

Income TAX refund

Claim income TAX refund

Like every year, it is now time for filling Income TAX Returns so we thought lets pick up a less discussed section of TAX returns i.e How to claim Income TAX returns.

Let us look at the ACT

As per the Income Tax Act, a person is required to file his/her return in the relevant assessment year by July 31 to claim the refund.

Year on Year, we  file income tax returns (ITR) but most of us are not sure about how the process of claiming income tax refund works..

Who is eligible for Income Tax Refunds?

Anyone who has paid more TAX then liability. You are eligible to get income tax refund when you have paid more tax to the government than your actual tax liability.

This can happen when

  • the advance tax is paid
  • self-assessment tax paid
  • TDS deducted is higher than the total tax liability of a taxpayer.

In addition, you declare certain tax rebate details such as housing loan or interest on housing loan near the end of the financial TAX computation year.

Process to claim Income Tax Refund

A person can claim the refund of the excess tax paid/deducted during a financial year while filing his or her income tax returns for that year. As per the Income Tax Act, a person is required to file his/her return in the relevant assessment year by July 31 to claim the refund.

What is a relevant assessment year.

The FY immediately succeeding a financial year is the relevant assessment year (AY) for that FY. 

How to file income TAX return?

A person can file his/her return either by uploading the filled excel/java utility form or by providing the required data in the online forms (Only for those eligible to file ITR 1 or ITR 4 form).

You may visit https://www.hrblock.in/

Refund claimed shows in ITR filed by you

Once the entire ITR form is filled up, you click on the validate button on the ‘Taxes paid and Verification’ sheet. The system will auto calculate the refund due to you (as per the data entered by you). Refund amount will show up in the ‘Refund’ row as shown in the picture below.
Refund claimed which is also accepted by IT department stands refunded. The excess amount, if any, that you will be paid will be decided by the IT department after processing your return.

Tax form

Tax form

Steps after processing the Returns

After processing of return,

  • an intimation is sent depending on the outcome of the processing
  • In most cases, intimation under section 143(1) is send showing any one of the following:
  • Tax calculation matches that of the tax department and no further tax is payable by you
  • Calculation does not match that of the tax department and there is additional tax (called tax demand) payable.
  • Calculation matches that of the tax department and refund claim stands accepted by it.

For e-filed returns, the intimation pushed across to you via email. Along with the email, an SMS stating that, ITR is processed, is intimidated on the registered mobile number. Just in case, the department wants more information or your gets picked up for further scrutiny then a notice under a different section to the TAX- Payer.

I-T department will process it and verify the genuineness of the claim made

In case refund due to you is accepted, the intimation also states amount of refund that is payable. The department provides the refund reference number. One can track the status of his/her refund by logging in at the income tax e-filing website and clicking on the Refund/Demand Status under the ‘My Account’ tab 

State Bank of India for payment of refunds

The department has designated State Bank of India for payment of refunds either through

  • Cheque
  • direct credit into the taxpayer’s account.

It is advisable that you mention the correct bank details in your ITR form. The refund gets credited to the bank account given by TAX Payer in income tax return.

Income tax
Income tax

Interest on Refund

If refund is due to a taxpayer, section 244A states that interest shall be payable to the taxpayer/assesse subject to certain terms and conditions.

Hope we have been able to give you a broad Idea on getting Income TAX refunds. For more and accurate details you can visit the website

https://www.incometaxindiaefiling.gov.in/home

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