How to File for an Income Tax Refund: A Comprehensive Guide
If you have paid more income tax to the government than what you owe, you may be eligible for an income tax refund. This happens when the tax deducted at source (TDS), advance tax, or self-assessment tax you paid is higher than your actual tax liability for the financial year.
To claim the tax refund, you need to file your income tax return (ITR) for that year. You can do this either online or by using a JSON utility. The tax department sometimes provides pre-filled ITRs online, but it’s essential to double-check the information to avoid errors.When you fill out the ITR form, it will automatically calculate the income tax refund owed to you, which will be shown in the “Taxes Paid” section of the form.
However, the tax department will verify your claim before processing the refund.After filing and verifying your ITR, the tax department will process it and send you an intimation via email. This intimation will show the outcome of the processing, which may be any of the following: no further tax is payable, additional tax is payable, or your refund claim is accepted.If your refund claim is accepted, the intimation will state the amount of refund due to you, and the refund will be directly credited to your pre-validated bank account.
You can track the status of your refund on the income tax e-filing portal using your PAN and assessment year information.Interest will be paid on the income tax refund if your return is filed irrespective of the deadline. The interest calculation period depends on the mode of tax payment.If the tax department finds that it overpaid your refund during regular assessment, it may recover the excess amount along with interest.
If your refund is pending due to incorrect bank details or other issues, you can request the tax department to re-issue the refund with the correct information.In conclusion, if you believe you are eligible for an income tax refund, file your ITR, and keep track of the status to ensure a smooth refund process.