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If you have paid more tax than your actual tax liability in a year through TDS, you are eligible to claim a tax refund . The IT department generally takes 30-45 days from the date of ITR filing to process refunds.But, you will only receive it if you have followed the returns filing steps correctly. Here is what you can do if you have paid more taxes-
Steps to Claim Income Tax Refund Online
If you have filed your ITR correctly, the tax department will automatically process the refund if you are eligible for it. If you are new to ITR filing, here are the steps you can follow to ensure you get your refund.
- Log in to the official returns filing portal of the IT department.
- Register with your PAN which will then become your user ID for the portal.
- Under the 'Download' tab, select the relevant assessment year along with ITR form.
- Open the downloaded Excel utility and provide all the details mentioned in your Form 16.
- In case if you have paid more taxes, it'd be automatically calculated and displayed under the "Refund" field of your ITR form.
- Confirm all the details, and an XML file will be generated and saved on your computer.
- On the online tax portal, click on "Submit Return" button and upload the XML file.
Once the returns are filed successfully, you then have to e-verify your ITR. Your ITR filing will be considered incomplete if you do not e-verify your returns.Also, the refund amount on your ITR form is based on the data provided by you. But the IT department will then verify all the details that you have submitted to calculate your actual refund amount, which could be different from the amount on your returns form.
Steps to Check Status of Income Tax Refund Online
You can also check the status when you claim income tax refund online. For this, you can log in to your tax filing account and select “My Account”. Click on the “Refund/Demand Status” button, and you will be redirected to a page with all the information about your refund. If the returns are delayed due to a reason, like an error in your ITR, the same would be mentioned here.If you believe that you have correctly submitted your ITR with accurate details and your refund is still delayed, you can then submit a formal complaint to the grievance cell of the IT department with the help of an e-nivaran form. This form too can be accessed from the official e-filing portal online.
How Can I Get My Tax Refund?
Income tax refund is made in case there is a difference between the tax payable amount and the tax amount paid. If you pay a tax amount higher than your tax liability, then you can get a refund. However, to get a tax refund, you need to file income tax returns.Furthermore, you should know when you can claim an income tax refund . Here are a few situations when you can become eligible for a tax refund-
- In case you’ve paid a higher tax amount in advance based on self-assessment than the tax payable, then you can get a tax refund.
- If your interest on securities, TDS from salary, etc. is higher than your tax liability, then you can get a tax refund.
- In case the same income is taxed in a foreign country and India, then you can become eligible for a tax refund. However, to get a tax refund in this case, India must have an agreement to avoid double taxation with the foreign country.
- You’ll get a tax refund if the tax charged gets reduced due to an error in the assessment process.
Once you file your ITR , your tax liability is calculated. It’ll be checked if you’ve paid a higher tax amount. In case you’ve paid a higher tax amount, then you can get a tax refund.If you find out that you’ve paid higher tax, then you need to fill out Form 30. Form 30 allows you to request a tax refund. However, you must keep in mind that you need to submit the refund claim before the financial year ends. You can also claim income tax refund online .
How Many Days it Takes for ITR Refund?
Typically, the refund is provided within 20-45 days after the ITR is processed.
How Can I Check The Status of Income Tax Refund Online?
You can track the status of your refund based on the payment mode. Mainly, there are two payment modes-
- Direct Transfer If you choose this mode, then the refund will be transferred to your bank account directly. In order to check the status of the direct transfer, you need to visit the income tax portal- (). You need to click on ‘Status of Income Tax Refunds’. After that, you must enter your PAN number and the assessment year.
- Cheque If you select this option, then you’ll need to track the status with the speed post service that is delivering the cheque. You need to use the reference number provided by the Income Tax department to check the status.
FAQS - FREQUENTLY ASKED QUESTIONS
What Is the Minimum Amount of Income Tax Refund ?
To ensure that your income tax refund claim is processed smoothly, it is important to keep the following points in mind:
If you have completed six successive assessment years, your income tax refund claim will not be considered.
The refund amount for a single assessment year must be less than Rs.50 lakh.
Please note that interest will not be offered on refund claims that are filed late.
In case your refund claim is delayed and requires verification, the assessing officer may reconsider your claim.
By keeping these points in mind, you can avoid any potential complications when claiming your income tax refund.
How To Get a Maximum Tax Refund ?
In India, taxpayers can avail of income tax rebates under three different sections, namely 80C, 80CCC, and 80CCD(1), which offer a combined rebate limit of Rs. 1,50,000. In addition to this, taxpayers can also avail an additional rebate of Rs. 50,000 under section 80CCD(1B) by making self-contributions or deposits to their NPS account or Atal Pension Yojana. This means that taxpayers can potentially reduce their taxable income by a total of Rs. 2,00,000 if they take advantage of all the available income tax rebates. It is important to note that these rebate limits and eligibility criteria are subject to change, so it is advisable to consult with a financial expert or refer to the latest tax regulations before making any investment or tax-related decisions.
is Income Tax Automatically Refunded ?
The CPC (Centralised Processing Centre) will meticulously review your tax return to ensure accuracy and completeness. They will also verify if the tax amount paid exceeds your tax liability and initiate the refund process accordingly. Once the refund is processed, it will be promptly credited to your designated bank account without any further action required from you.
How to Fill ITR Self-Assessment Tax ?
To pay your Self-Assessment Tax (SAT) in India, follow these simple steps:
Visit the official website of the Income Tax Department of India and sign in.
Click on the "e-Pay taxes" option to be directed to the website of the National Securities Depository Ltd. (NSDL).
Select "Challan no. /ITNS 280" and then choose the "0021 (other than companies)" option.
Fill in your personal details, including your name, address, contact details, and PAN card number.
Choose the correct assessment year for which you are making the SAT payment.
Select "Self Assessment Tax" as the type of payment.
Choose your preferred bank from the list of options available to make the payment.
Enter the amount of tax payable.
You will be redirected to the payment page of your chosen bank to complete the payment process.
After the payment is complete, a challan will be generated, containing a detailed representation of the transaction, along with the CIN and bank name.
It is recommended that you keep a soft or hard copy of the challan for future reference.
The challan details should reflect on your Form 26AS after a few days. If it doesn't, you can furnish the details while filing your Income Tax Return for the financial year.
How to Calculate Tax Refund ?
To get an income tax refund, you need to calculate your tax liability and ensure that you have paid more than the required amount. Tax liability is the tax you owe based on your income and other factors. Overpaying taxes can result in a refund, but it's best to avoid doing so as it ties up your money.
How to Know If We Have Received an Income Tax Refund ?
To know your refund/demand status on the e-Filing website, login using your User ID, Password, Date of Birth/Date of Incorporation, and Captcha.
Click on "Refund/Demand Status" under the "My Account" tab to view the mode of payment used for your refund/demand, along with transaction details such as date and amount refunded.
This information is important for tracking your financial transactions and addressing any demands that may arise. Additionally, the website offers various tools such as online tax filing, payment options, and tax credit statements to help you manage your taxes efficiently.
How to Fill Challan 280 For A Self-Assessment Tax ?
Challan 280, also known as ITNS 280, is a versatile form that individuals can utilize to pay their income tax dues. These dues can include self-assessment tax, tax on distributed income and profit, regular assessment tax, advance tax, and surtax. It is important to note that regardless of the method of payment, the use of challan 280 is mandatory.
If you prefer to make your payment offline, you will need to visit a designated bank branch and submit the completed form along with the payment. On the other hand, if you choose to make the payment online, you can conveniently access the TIN NSDL website and complete the transaction electronically.
What Is the Difference Between Challan 280 And 281 ?
Challan 280 and 281 are two different types of payment forms used for paying income tax in India. Here are the differences between the two:
Challan 280: This form is used for payment of income tax and corporate tax. It is also used for payment of advance tax, self-assessment tax, surcharge, and education cess. It is applicable to both individuals and companies.
Challan 281: This form is used for the payment of tax deducted at source (TDS) and tax collected at source (TCS). It is applicable to deductors and collectors who are required to deduct or collect tax at source.
While both challan 280 and 281 are used for tax payments, the former is used for income tax and corporate tax payments, including advance tax and self-assessment tax, while the latter is used for TDS and TCS payments.
How to Submit Challan 280 Online ?
Making your income tax payment online using Challan 280 is a convenient and hassle-free process. Follow these simple steps to pay your taxes online:
Visit the TIN NSDL website and select the 'e-payment: Pay Taxes Online' option under 'Services'.
Click on the 'INCOME TAX & CORPORATION TAX (CHALLAN 280)' option and fill in the form within 30 minutes.
Choose '(0021) Income Tax (Other than Companies)' and select your preferred 'Type of Payment' option. If you're paying your self-assessment tax, choose option (300).
Choose your 'mode of payment', either via debit card or internet banking of the designated bank.
Enter your PAN and the assessment year (for example, for the financial year 2019-2020, the assessment year will be 2020-2021).
Provide your personal details, such as your residential address, mobile number, and registered email ID.
Type in the CAPTCHA code and click the 'Proceed' button.
Double-check all the tax payment details displayed on the screen, including the spelling of your name, and verify them.
Check the 'I agree' box under the declaration 'Consent is provided to NSDL e-Gov' to give your consent to NSDL e-Gov.
Click on the 'Submit to the Bank' button and log in to your net banking account.
Enter the interest amount (if applicable), tax amount, and make the payment. After the successful transaction, your 'tax challan receipt' will be displayed.
Save the payment receipt or take a screenshot of it for future reference.
Remember to double-check each and every detail you enter online to ensure accuracy. Making an income tax payment online is not only quick and easy but also ensures that your taxes are paid on time.
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.
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