Paying taxes is essential, but sometimes, you might end up paying more than you owe. In such cases, you can claim an Income Tax Refund from the government. This article will help you understand how to claim a refund and avoid unnecessary delays.
What is an Income Tax Refund?
An income tax refund is the extra money you have paid to the tax department, which is returned to you after verifying your tax payments. This happens when:
- Tax Deducted at Source (TDS) is more than your actual tax liability.
- You have paid advance tax that exceeds your actual tax dues.
- You have not claimed deductions or exemptions while filing your return.
Once your Income Tax Return (ITR) is processed, the excess amount is credited to your bank account.
How to Claim an Income Tax Refund?
Claiming an income tax refund is easy if you follow these steps:
Step 1: File Your ITR
To be eligible for a refund, you must file your Income Tax Return (ITR) on time. Mention your correct bank account details for a smooth refund process.
Step 2: Verify Your ITR
After filing, verify your ITR using Aadhaar OTP, net banking, or by sending a signed physical copy to the Income Tax Department.
Step 3: Processing by the Tax Department
Once verified, the Income Tax Department reviews your return. If excess tax is found, your refund is approved.
Step 4: Receive Your Refund
The approved refund is transferred directly to your bank account through NEFT or RTGS.
Interest on Income Tax Refund
If your refund is delayed, the government pays interest at 6% per year under Section 244A of the Income Tax Act. However, interest is not given if the refund is less than 10% of the total tax paid.
How to Check Income Tax Refund Status?
You can check your refund status online in two ways:
Method 1: Through the Income Tax e-Filing Portal
- Visit www.incometax.gov.in
- Log in using your PAN and password.
- Click on ‘View Filed Returns’ and select the relevant assessment year.
Method 2: Through the NSDL Portal
- Go to NSDL Refund Status Portal.
- Enter your PAN and assessment year.
- Click ‘Submit’ to view the status.
Common Reasons for Refund Delays
Sometimes, refunds are delayed due to:
- Incorrect bank details in the ITR.
- Mismatch in TDS and actual tax filings.
- Non-verification of ITR after filing.
- Technical delays in processing.
To avoid these issues, ensure all details are accurate before submission.
Conclusion
Claiming an Income Tax Refund is a simple process if done correctly. File your taxes on time, verify your ITR, and track your refund status to ensure you get your money back without delays.
