What is the Income Tax Refund Process?

Income tax refund means the reimbursement initiated by the Income Tax Department to the taxpayer for any excess amount paid in taxes by the way of TDS, TCS, Advance Tax or Self Assessment Tax. If you want to know about the income tax refund process, you’ve made the right choice by visiting our blog post!

Who is Eligible for Income Tax Refund?

If you fulfill any of the below-mentioned requirements, you are eligible for income tax refund:

• If your total advance tax payments are more than 100% of your actual tax liability in a FY.
• If your TDS payments in a FY are more than your final tax liability after regular assessment.
• If you’ve made any tax-saving investments at the last moment.
• If you’ve paid tax on your income in a country that has a double taxation avoidance agreement with India.
• If you’ve paid excess tax under regular assessment due to assessment errors.

Income Tax Refund Process

Through the following process, you can claim the income tax refund. 

Step 1: File Income Tax Return On E-Filing Portal

File Tax Return using the official Income Tax e-filing portal. After this, you will receive an acknowledgement number for online return filing with your digital signature. You can also sign ITR V form physically and submit it to the income tax processing center within 120 days of filing the return.

Step 2: Refund Processing by Income Tax Department (ITD)

Once an income tax return has been filed, the income tax department will scrutinize the claims made. If there is any refund to be processed, ITD will do so automatically. All refund claims are processed via State Bank of India. Mode of payment used by ITD for making refunds are through cheque or demand draft or electronic clearing system.

Step 3: Wait to Receive Refund

It typically takes between 4 to 5 weeks for income tax refund. However, it can take longer if the returns are filed physically. Make sure the excess tax paid reflects in your tax credit statement to get the tax refund.

How to check Income Tax Refund Status?

To check the status of your Income Tax Refund, you are required to follow the instructions mentioned below:

Step 1: Visit the E-filing Portal and Login as User

Visit the homepage of the E-filing Portal of the Income Tax Department. Enter the User ID and Password.

Step 2: View your Filed Returns Option

Go to the e-File tab, then Income Tax Returns where you can locate ‘View Filed Returns’.

Step 3: Select the desired Assessment Year

Now, select the assessment year for which you want to check the refund status and then click on ‘View Details’.

By following these simple steps, you can easily check the Income Tax Refund status.

How long does Income Tax Refund Processing take?

The refund processing by the income tax department begins only once the return has been e-verified by the taxpayer. Generally, a refund can take between 4 to 5 weeks to be credited to the taxpayer’s account (according to the Income Tax Department.) 

In case you do not receive the duration within this period, you must check for any intimation regarding ITR discrepancies. Check your inbox/spam folder for a mail from the Income Tax Department regarding refund.

Conclusion

While filing your income tax return, there might be a mismatch between the income tax paid and your actual tax liability. In this situation, an income tax refund is provided by the Income Tax Department. You do not receive the income tax refund right away. It can take several weeks. Make sure you file your ITR correctly and without any discrepancies. You can check the income tax refund status using the official income tax portal of the Income Tax Department. If you are facing any issues related to ITR, you can connect with Registrationwala for assistance. 

Author: Dushyant Sharma

Hey there, I'm Dushyant Sharma. With the extensive knowledge I've gained in past 8 years, I have been creating content on various subjects such as banking, insurance, telecom, and all the important registration and licensing processes for various companies. I'm here to help everyone with my expertise in these areas through my articles.