As per the IT laws, taxpayers are required to pay income tax as per their tax slab every year. But in case of advance tax, TDS (Tax Deducted at Source), and self-assessment tax, the taxpayers often end up paying more than they were required to.

You can claim a refund on the excess tax paid to the IT department by filing your income tax returns (ITR).
Let us have a look at how this can be done-

How to Claim Refund on Excess Tax Paid?

In case you have paid more tax than you were required to or if the TDS was higher than your tax liability, you canclaim a tax refund. In the past, tax refund claims were required to be submitted along with Form 30 at the time of filing ITR.
But from 1st September 2019, the new Finance Act has eliminated this requirement. You are now only required to file your ITR to claim a refund on the excess taxes paid.

Steps to Claim Tax Refund

Follow these steps for claim your tax refund-
  • File your ITR with the help of the applicable form online and e-verify the same
  • After successful verification, the online system will automatically calculate the refund you are entitled to receive (if any)
  • In case you have paid excess tax and the same is showing on your ITR form, you should make sure that you have pre-validated your bank account
  • If you are eligible to receive a refund, you will mostly receive an intimation under Section 143(1)(c) through email
  • You will also receive a refund reference number for tracking your refund

How to Track Refund Status Online?

You can easily check the status of your refund claim online. Follow these steps for the same-
  • Visit https://www.incometaxindiaefiling.gov.in/ and login to your account
  • In the top menu bar, scroll over to the “My Account” option
  • A drop-down menu will open, and you can click on "My Returns/Forms"
  • You will be redirected to a new page where you can check the status of your refund

Interest on Tax Refund

As per the IT laws, you are entitled to also receive interest at a monthly rate of 0.5% on your refund amount in case if you don’t receive it within due time. But if the refund amount is lower than 10% of your actual tax liability, no interest would be paid.

Thanks to digitalization, claiming a refund on excess tax is now quick and easy with no additional steps involved. Always file your ITR before the due date for timely processing of your returns and receive the refunds without any delay.

Click here to visit our personalized online advisor that gives you the financial expertise you need.

DISCLAIMER

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.



Trending Articles

Article Links

How to Calculate Income Tax

Income Tax Benefit

Tax Saving Investment

Tax Saving Investments Under 80C

What is Tax

Latest Articles

abc-of-taxes
abc-of-taxes

Income Tax Slab for Senior Citizen: Rates and Exemptions

Read More
Posted on 24 March 2020
abc-of-taxes
abc-of-taxes

How to Get Tax Rebate in India?

Read More
Posted on 24 March 2020
abc-of-taxes
abc-of-taxes

Section 80D Of The Income Tax Act For Health Insurance

Read More
Posted on 24 March 2020

Featured Articles

image abc-of-personal-money
abc-of-personal-money

Are Millennials Any Different When It Comes To Planning Financials?

Read More
Posted on 05 February 2020

Relevant Articles

image abc-of-personal-money
abc-of-personal-money

Is Any Dream Too Big If It Is Born Out of Passion and Ambition?

Read More
Posted on 30 March 2020
image abc-of-personal-money
abc-of-personal-money

Free Access to some Amazing Content Online

Read More
Posted on 30 March 2020
image abc-of-personal-money
abc-of-personal-money

Free Access to Online Music

Read More
Posted on 30 March 2020