Effortless Tax Payment & Income Tax Refund Tracking with IT Department

IT department: An overview

The Income Tax Department, which is an integral part of the Indian government looks into the assessment and collection of income taxes in the country. It is responsible for the following tasks: ¹

1. Tax collections

   Primarily, the income tax department has the responsibility of gathering income tax from individuals, local authorities or businesses who are liable to pay taxes as per the Income Tax Act, of 1961.

2. Enforcement of tax laws

   In addition to imposing taxes, the department is also responsible for looking into the enforcement of various tax laws in the country like the Income Tax Act of 1961, the Black Money Act of 2015 and the Benami Transactions Act of 1988.

3. Processing returns

   The IT department takes the responsibility of ensuring a seamless filing of income tax returns. Know that the ITRs are processed at the Centralised Processing Center (CPC).

4. Managing international taxation

   The IT department ensures to look into international tax matters to avoid double taxation.

5. Spreading awareness

   The IT department also ensures to offer support to taxpayers by providing information about the tax liabilities, rights and responsibilities under various tax laws in the country. Additionally, the department also undertakes to spread general awareness of income tax laws.

How do you pay taxes online within minutes?

The IT department has made it easier to pay income taxes online through its online portal. Here’s how you can pay income taxes online: ²

• Step 1:

  Visit the online portal of the income tax department and find the “e-Pay Tax” option to open a new tab for filing taxes.

• Step 2:

  Fill in the necessary details like PAN and mobile number. Verify your profile through a simple OPT verification.

• Step 3:

  In this step, you have to select the assessment year and the preferred payment type. Make sure to select the “Income Tax” box to choose the assessment year and then proceed to select “Self-Assessment Tax (300)” under the “Type of Payment”.

• Step 4:

  Now, you have to enter the payment details and then select the payment method. Remember that the IT department allows payment through debit card, credit card, internet banking, UPI, RTGS/NEFT or pay at the bank counter.

• Step 5:

  Once you have made the payment you will receive a confirmation.

How to claim Income tax refunds: Easy online tracking?

Before we move ahead with the process of tracking income tax refunds, first, know that an income tax refund is granted to you by the tax department in case you have paid more income tax than you were supposed to pay in the given financial year. ³

Once you have filed your income tax returns, the IT department looks into your tax liabilities. If the amount paid exceeds the liability, the department issues a return along with interest at 0.5% per month or 6% per annum till the time you have received the refund. ³

Here’s how you can track your income tax refunds through the income tax portal:

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• Step 1:

  Visit the online income tax portal and log into your account.

• Step 2:

  Select the “e-file” menu and from the dropbox, click on the “Income Tax Returns” and then select the “View Filed Returns” option.

• Step 3:

  You will be able to see the status of the ITR you have filed. Select the “View Details” option to check the status of your income tax refunds.

Here’s how you can track your income tax refunds through the NSDL portal:

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• Step 1:

  Visit the official NSDL portal and log into your account using your PAN details.

• Step 2:

  Once you are in, select the assessment year for which you want to check the status of income tax refunds. Verify the login using a capture code.

• Step 3:

  Select the “Proceed” option under the “Taxpayer Refund” bar, and you will be able to see your refund status.

 

Conclusion

 

The tax system in India finds its roots in ancient writings like the Manusmriti, and over the years, the income tax department has adopted unique features that have made that assessment and collection simpler. The income tax department is crucial in ensuring advance to tax laws in the country. ¹

 

FAQs

 

1. What is the IT department?

   The IT department in India looks into the assessment and collection of income taxes in the country and it is an integral part of the central government. The IT department, in addition to assessing and collecting income taxes, also looks into the enforcement of tax various tax laws and international taxations. ¹

2. Can I file income tax returns online?

   Yes, you can file your income tax returns online through the official Income Tax Portal. ²

3. How can I check the status of my income tax refunds online?

   You can check the status of your income tax refunds either by visiting the official income tax portal or NSDL portal by simply logging in and selecting the assessment year for which you want to check the refund status. ³