Usually, the last date for Income Tax Return (ITR) return filing is 31
st July for non-audit cases and 31
st October for cases that need an audit. Whatever your case, if you have paid more income tax than your actual liability for the last financial year, fret not, as you are eligible to get a refund after filing the ITR. Once the filing season ends, the time starts to wait for the income tax refund to arrive in your bank account. However, remember that you can receive this refund only after the Income Tax (IT) department processes the ITR and confirms it through an intimation notice under section 143 (1) of the
Income Tax Act, 1961. That means you should start checking the income tax refund status after that.
State Bank of India (SBI) is the refund banker of the Income Tax Department, which directly credits the IT refund in your bank account provided by you while filing the return. Therefore, ensure mentioning the correct account number and IFSC code. Moreover, the new rules require pre-validation of the bank account on the new
IT e-filing portal and PAN linked with the bank account. Not sure how to check income tax refund status? Here’s a guide to it.
Read More: How to File Income Tax Return Online in India Know the Right Time to Claim an Income Tax Refund
When you pay extra income tax against your actual liability, you get a refund of the excess amount after a thorough assessment, known as the income tax refund. Following are certain situations when you can claim a tax refund:
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Excess TDS Deduction
The employer deducts taxes after verifying various documents under Sections 80C and 80D. However, if the employee cannot furnish the required proof before the FY-end, the employer may deduct a higher amount. If you have paid excess TDS for this reason, you may claim its refund while filing the ITR and check the ITR refund status later.
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Not Falling in the Taxable Bracket
If you do not fall within the taxable bracket but taxes got deducted from your income, you may claim a refund for the deducted amount while filling your ITR.
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Excess Deduction from the Interest Income
Banks may deduct tax on the accrued interest on bonds or fixed deposits. If it exceeds the limit, consider claiming a tax refund. You can easily track income tax refund status on the IT website.
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Excess Tax Paid in Advance
While self-assessing the tax liability, people often pay extra tax in advance for a given financial year. If you also did so, claim a tax refund for the advance tax while filing the ITR. For instance, you are eligible for a loan against property tax benefits under Section 37 (1) and Section 24 (B). If you paid tax for them, claim tax deductions to obtain these benefits later.
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Deleted Tax Additions
Sometimes, the income tax department makes certain additions to the income during IT proceedings. Accordingly, if you paid taxes for these additions, claim a refund during ITR filing. However, you may get them deleted through appeal authorities.
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Double Taxation
The double taxation situation arises when you are a citizen of one country but receive income from another. However, India has DTAA (Double Taxation Avoidance Agreement) with several countries, which allows you to claim a tax refund for double taxation.
Know How to Claim a Refund
As a taxpayer, you may simply claim an income tax refund by filing the ITR. Remember, you are eligible to get a refund only after the IT department verifies the ITR through online and offline modes. After proper assessment and verification, you will receive a refund only if the IT department finds the claim legitimate and valid.
How Does the Refund System Work?
When you claim an income tax refund, the IT department processes it after a thorough assessment, and you receive an intimation from the Centralised Processing Centre under section 143(1). It will confirm the refund amount you are eligible to receive based on their assessment. You will automatically receive the refund in your bank account within a few weeks. In the meantime, you must know how to check the ITR refund status to stay updated about the process.
Ways to Check Income Tax Refund Status
You can check your income tax refund status on the following platforms:
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The NSDL Website
The TIN NSDL website allows taxpayers to track their income tax return status. Follow these steps to track the status online: A message will appear on the screen depending on the current refund status.
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The New Portal of the Income Tax Department
Follow these steps to check the ITR refund status through the IT department’s new portal: - Visit the new portal at www.incometax.gov.in
- Log in to your account by entering the user ID, which is your PAN or Aadhaar number, and a password
- Click on the 'e-file' option, select 'Income tax returns’, and click 'View Filed returns.'
- Check the last ITR filed
It will show the ITR filing status, the date of tax refund issue, the exact refund amount, and the date of clearance.
Read More: What is Income Tax Return (ITR)? Meanings of Common Status Messages
When you check your income tax refund status, the message displayed may mean the following:
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Refund is Credited
You will read this message if the refund has successfully reached your account. The statement will also show the last four digits of your bank account number, the refund date, and a reference number. If the amount is still not showing in your account, contact SBI customer care for clarification.
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Refund Returned
You will see this message if the refund is not credited to your account due to the wrong bank account number, incorrect IFSC code, or the account lying dormant.
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Adjusted Against Outstanding Demand of Previous Year
The IT department can adjust the current year’s refund amount against the previous year’s outstanding demand in part or full. Although the department has the authority to do that under section 245, they must notify you.
Regarding any queries related to the income tax refund status, submit a grievance to the income tax department by logging into your income tax e-filing account.
