Why do you need to pay income tax
[2]?
To understand what an income tax refund is, it’s crucial to know what income tax is. Payable directly against earnings, the income tax is a direct tax levied by the government upon the income of individuals and businesses in a fiscal year. The government needs money to build and develop infrastructure, provide and upgrade services like education, healthcare, and transport systems, offer subsidies, and organise welfare programs. It is the revenue earned through the income taxes that is spent here. Hence, to help the nation grow and keep enjoying the infrastructure, amenities, and provisions by the government, it’s necessary to pay the income taxes on time.
Who is liable to pay taxes
[2] ?
Any Indian citizen aged under 60 years earning more than the cut-off annual income level specified by the government is liable to pay the income taxes. However, those earning more than the specified cut-off even in retirement years after 60 also need to pay the taxes. The Income Tax Act 1961 was legislated by the Government of India to manage and govern the taxes. In the following year, the income tax rules and regulations were introduced .
What is the tax refund and when are you eligible for it
[3] ?
A taxpayer in India is entitled to get an income tax refund when he has paid more taxes than the required amount. In turn, he/she gets a reimbursement of the excess payment issued by the government after filing the returns for the fiscal year. You are thus eligible for the IT refund in the following cases:
- If the total tax paid in a financial year is higher than 100% of the assessed tax liability.
- If the TDS deductions are greater than the final value of tax liability in a fiscal year.
- If any tax-saving investment is made at the end of the fiscal year.
- If excess tax has been paid due to erroneous assessment of the income tax payable.
- If tax has been paid for earnings in a foreign country having a Double Taxation Avoidance Agreement with India.
How and when can you claim the income tax refund
[3] ?
The simplest thing you can do to claim an income tax refund is to file the IT returns before the due date. But before doing that, you may check the advance tax payments under the provisions of Form 26AS. Once you file the returns, the assessment authority matches the tax records with your tax calculations and approves the refund accordingly.
In general, a taxpayer can claim an income tax refund within 12 months after the prevailing assessment year. However, the following are the conditions where the due date can fluctuate.
- Refunds can be claimed within successive assessments of six years. No refund requests will be accepted by the Central Board of Direct Taxes (CBDT) thereafter. CBDT doesn’t pay interest on refunds either.
- Delayed tax refunds are acceptable only when they are left to be verified by the verifying officer.
- A refund claim is allowed up to Rs 50 lakhs per assessment year.
How will you receive the income tax refund
[4] ?
While filing the returns, you can choose how to receive the tax refunds, if any. To get the refund, one needs to select from options—direct credit to a bank account or via a refund check. Thus, it’s extremely crucial to be careful and furnish the correct details of your bank account, i.e., the bank and its branch, the account number, and the IFSC code, as well as your complete address while filing the returns. A refund will be issued directly to this account or through a cheque dispatched to your specified address as per your preference.
How to check the refund status online
[3] ?
While awaiting an income tax refund, you can conveniently track and monitor the status of the process online by checking the e-filing portal or visiting the National Securities Depository Limited (NSDL) website. Here’s a glance at what you may do.
Via e-filing portal:
- Go to http://incometaxindiaefiling.gov.in
- Log on to your IT account using your PAN and password and fill in the required CAPTCHA code.
- Check the View returns/Form option, go to Select an option, and choose Income tax returns from the drop-down.
- Fill in the assessment year and submit the request.
- Find the ITR acknowledgement number and check the corresponding refund status.
Via the NSDL website:
- Visit the website or click on http://tin.tin.nsdl.com/oltas/refundstatuslogin.html
- Fill in the PAN details, assessment year, and the CAPTCHA code.
- Click on submit to see the refund status.
Conclusion
[3]
Now that you know the six crucial things related to income tax refunds, it may be an easier deal to claim the same. Usually, the refund requests are processed and settled within 20-45 days. However, in case of delays, you can recheck the refund status to trace the estimated ITR refund time. For any concerns raised by the refund status, you can either resubmit the request or wait for the relevant authorities to step in.
An ISO 9001:2015 
