Have You Got the Income Tax Refund?

You have filed the income tax returns for the Financial Year 2018-19 in time. Great, this is a job well done. But, have you received your income tax refund?  If you have not received the income tax refund yet, it could be because of incorrect bank details. It could also be because of other reasons, but this is a common one.

In the past; tax refunds were given through cheque or even directly to your bank account. Today, the only way to get the income tax refund is a direct credit to your bank account. The bank account must be pre-validated and linked to PAN from the current assessment year.

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Have You Got The Income Tax Refund?

When Do You Get an Income Tax Refund?

You are entitled to an income tax refund, if excess tax has been deducted from your income. This would happen if you earn multiple incomes.

You get a tax refund when your tax liability is less than the taxes paid. Tax refunds are paid at the end of the tax year. You get a tax refund if:

• The advance tax paid based on self-assessment is greater than your tax liability.
• If tax deducted at source (TDS) from interest earned on securities, dividends or your salary is more than the tax payable.
• There are investments which offer tax deductions and exemptions you have not declared. 

Steps to Get Your Income Tax Refund

• STEP 1: Calculate your income tax liability to calculate the income tax you get back as a tax refund.
• STEP 2: Getting tax refund is a simple process. Payment is made by cheque or simply credited to the bank account which has been registered with the Income Tax Department.

How to Claim Income Tax Refund?

To file income tax refund, declare your investments in Form 16. Common investments are premiums on life insurance, house rent paid, investments in mutual funds, FDs, NSC, PPF, SCSS, ELSS, NPS and so on. Tuition fees paid for children and Home Loan EMI principal is eligible for tax deduction under Section 80C.

While filing ITR you must submit all relevant investment proofs. If you don’t, you end up paying extra taxes which can be avoided. You can fill Form 30 if you have forgotten to submit relevant investment proofs. Form 30 is a request that your case be looked into so that excess tax can be refunded. The income tax refund claim must be submitted before the end of the financial year.

How to Track Income Tax Refund?

• Get Your Refund Through Cheque: You can track the income tax refund cheque by contacting the speed post service which is delivering it. Just use the reference number which the IT Department has given you.
• Get Your Refund Through Direct Transfer: Get the excess tax refunded to the registered bank account through ECS transfer. Get income tax refund directly credited through RTGS/NEFT to your registered bank account. You can track the income tax refund through NSDL-TIN website. This can be done by clicking ‘Status of Tax Refunds’ or even through the income tax department website. You will have to enter PAN and assessment year to get tax refund details.

Check Income Tax Refund Status on NSDL

• You must first visit the official Tax Information Network (TIN) website.
• Enter PAN Number, Assessment Year and the Captcha.
• Select ‘Submit’ button and check income tax refund status.

Common Types of Income Tax Refund Status:

Not Determined: This means your income tax refund has not yet been processed.

Refund Paid: This means your income tax refund has been transferred to your registered bank account.

Refund Expired: This status is for those who have opted to receive income tax refund through cheque. If the cheque is not encashed within 30 days of issuance, it expires.

Cheque Has Been Encashed: This means the income tax refund cheque which is issued against your name has been received and encashed.

Refund Returned: This means the cheque which has been issued by the Income Tax Department has been returned.

What to Do if Income Tax Refund is Not Processed?                           

The income tax return form must be verified by the relevant authorities. If you have not yet received the income tax refund (This is even after the 3-4 month deadline of 31^st July of a particular assessment year), it means the tax refund has not been verified. Just get in touch with the Centralized Processing Centre (CPC) of the Income Tax Department on 1800 4250 0025 or 080-2650 0025 to find out the reason for the delay.

What if you have not received income tax refund in due time? Well, you can receive the interest of 0.5% on the expected refund amount for each month or part of the month for which the refund is delayed. Interest rate would be calculated from 1^st April of the relevant assessment year. But, if delay is because of something you have done, there’s no interest paid for the duration.

How to Track Income Tax Refund Status?

• Visit the websites www.incometaxindia.gov.in or www.tin-nsdl.com to check the income tax refund status.
• Go to ‘Status of Tax Refunds’ tab and give the PAN Number and assessment year for which you want to track the status of income tax refund.
• You would find a message popping up giving the mode of payment, the reference number and status along with the date of refund. This happens only if the refund is processed.
• If you have not received the income tax refund, there would be a suitable message like ‘refund unpaid’. This could be due to incorrect bank account details.
• You must verify the bank account details you have submitted.  

(You have to give a bank account where you want tax refund credited. This includes the name of the bank, the account number and the 11 digit IFS Code for foreign bank account).

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