What is Income Tax Refund?

Income tax refund means a refund amount that is initiated by the income tax department if the amount paid in taxes exceeds the actual amount due (either by way of TDS or TCS or Advance Tax or Self-Assessment Tax) and is known as an income tax refund. The tax is calculated after taking into consideration all the deductions and exemptions at the time of filing of Income Tax Return.

refund status

How to claim an income tax refund?

For claiming your income tax refund or TDS refund all you need to do is give written proof to the Department about your Income and deduction details, by way of filing your Income Tax Return. It is essential to remember that online filing of the return is a must to claim your Income Tax Refund.


File your Income Tax Return now: Tax2win.in

I forgot to file my Income Tax Return within the due date, can I claim my refund now?

Don’t worry, if you missed the bus, you can still file a Belated/Late Return under section 139(4) and you’re good to go! To know more about Belated Return, refer to our blog

The filing for Financial Year (FY) 2020-21 Assessment Year (AY) 2021-22 has begun. The due date for which was 31st July 2021 which is extended till 31st December, 2021 but the belated return can be filed upto 31st March 2022. After filing & e-verifying your return, use our tool to check your ITR refund status.


I am eligible for a refund as per my ITR but haven’t received it yet?

Refund processing by the tax department starts only after the return is e-verified by the tax filer. Usually, it takes 25-60 days for the refund to be credited to your account. However, If you haven't received your refund during this time duration, you must check for discrepancies in your ITR; check your email for any notification from the IT department regarding the refund.

To know how to verify your Income Tax Return, refer to our guide.


If it’s already been verified, then the reason for not receiving your refund can be:

  • Your ITR status is still under processing.
  • You have received a notice/ communication from the IT department regarding your filed ITR. For e.g., Defective notice u/s 139(9) or notice for proposed adjustments u/s 143(1)(a).
  • Your ITR has been processed but the Income Tax Department determined: No Refund Due.
  • The Return has been processed after determining the refund, but the refund could not be credited due to reasons like incorrect bank account number, incorrect postal address etc.
  • Your ITR has been processed after adjusting it with outstanding demand (if any).

How much time does it take for a refund to get credited to my Bank Account?

Generally, as mentioned earlier, it takes 20-60 days from the date of e-verification of your Income Tax Return to get your refund credited. However, for the returns verified through sending of ITR-V to CPC Bengaluru, it may take some more time.


For how many previous years can I claim an income tax refund?

Earlier, the taxpayers had the freedom to file IT returns for two financial years. However, as per the new rules, IT refund can only be filed for one financial year.

In case, you have a refund due for the years preceding the aforesaid year and you forgot to file an income tax return for those years, then you can take respite of CBDT Circular No: 9/2015 to get a refund for previous six assessment years. So, as per this provision, you can claim a refund for the AY 2013-14; AY 2014-15; AY 2015-16; AY 2016-17; AY 2017-18 and AY2018-19.

This circular can be used only where your refunds are the result of the excessive deduction/collection of tax and/or excess deposit of advance /self-assessment tax.
For taking benefit of the above circular, you need to make an application to the relevant authority depending upon the amount of claim.

Amount of claim (refund / loss) for any one assessment year Application To:
10 Lakhs or less Principal Commissioner of Income-tax/ Commissioner of Income-Tax
More than Rs.10 Lakhs but less than Rs. 50 Lakhs Principal Chief Commissioners of Income-tax/Chief Commissioners of Income-tax
More than 50 Lakhs Central Board of Direct Taxes (CBDT)

Note: These authorities have all the powers to make necessary inquiries or scrutinize to ascertain the correctness of the claim and accept/ reject your application. Also, in such cases the Income Tax department shall not pay any interest on the delayed refunds.


What is the meaning of the different “Refund Status” ?

Status Meaning

No e-filing has been done

You have either not filed your return or filed it manually.

To be eligible for a refund, you are required to file your return online as the returns filed offline are not qualified for a refund from F.Y. 2014-15.

E-file your returns for free now from Tax2win.in or take the help of our expert CAs

Refund is already credited to your bank, please contact your bank.

Refund has been processed and credited to your Bank Account

If your refund has not been credited, then contact:

CMP, State Bank of India

Address: Survey No.21 Opposite : Hyderabad Central University, Main Gate, Gachibowli, Hyderabad -500019

Email: [email protected]

Toll free Number: 1800 425 9760

Refund cheque has already been encashed.

Your income tax refund process is complete & it has been credited to your Bank Account and the same has been encashed.

If your refund has not been credited, then contact:

CMP, State Bank of India

Address: Survey No.21 Opposite : Hyderabad Central University, Main Gate, Gachibowli, Hyderabad -500019

Email: [email protected]

Toll free Number: 1800 425 9760

Refund Not Determined

As per the Income Tax department, no refund is determined after processing of your ITR

Unable to credit refund as the account number provided by you is incorrect.

This means that the account number provided by you was incorrect. You are requested to apply for refund reissue by providing the correct account number to claim your refund.

Defective return u/s 139(9)

It may be that your return has been treated as a defective Return. For the exact reason, you can check this on your income tax website user account.

ITR Processed but need to submit rectification request

This may occur due to a mismatch in the calculation of the department & ITR filed. For this you may receive an intimation from the department to submit a https://tax2win.in/guide/rectify-income-tax-return-u-s-154-1-rectification-request

Return submitted. Processing rights transferred to Jurisdictional Assessing Officer.

This implies that your return will be processed by your Jurisdictional Assessing Officer (AO). Please contact AO for further details. Click here to know your AO.

Need help from an Expert CA ? Click here.

Return Submitted and not verified

This implies that your return has been submitted successfully but it has not been e-verified either through post or online mode. Further, until and unless you verify your return, it would not be processed by the income tax department. So, please verify within 120 days from the date of filing.

How to e-verify please read.

Return Processed with No Demand and No Refund

It implies that your return has been processed successfully without any additional tax payable or refund due. Further, you can check the details from the intimation received u/s 143(1) on your mail id.

Return Processed and Tax Demand Determined

This implies that your Income has been assessed by the Income tax department from your filed ITR and tax payable amount has been determined upon it.

You can check the details from the intimation received u/s 143(1) on your mail id.

In that case you need to submit the response through the E-Filing website under “efile tab” -> “Response to outstanding tax demand”.

Need help from Expert CA? Click here.

Return Processed. Refund determined and Sent to Refund Banker.

This implies that your refund claim has been forwarded to the refund banker for processing.

So, wait for some more days and the refund amount will be credited in the bank account mentioned by you at the time of filing the return.

Return Processed and Refund returned Unpaid

This implies that the income tax department has sent a refund to you but either your address is wrong or bank details provided are incorrect, due to which refund was not credited/paid.

In that case you need to place a refund reissue request stating the failure reason under “My Account” -> Service -> “Refund reissue request”.

Need help from Expert CA? Click here.

e-Return for this PAN and Acknowledgement Number has been digitally Signed

This implies that your return has been filed successfully and it is digitally signed.

Return Submitted and Under Processing

This implies that your Income-tax Return is still not processed.It is under process. Further, no need to worry if you have e-verified or sent your signed ITR V by post as it will definitely be processed by the department sooner or later and then you will receive a refund. It would be credited along with interest

Return Processed and Refund Paid

This implies that your return as well as refund has been processed successfully and the refund has been credited in your bank account. Now, no further action is needed from your side for this year.

Return Submitted and Verified

This implies that your return has been submitted and successfully verified. It will now be processed by the Income Tax Department. So, you have to wait for some more days

Invalid Return

This implies that your return has been treated as an invalid return by the Income Tax Department. You need to file your return again in this case.

Need help from Expert CA? Click here.

Return Processed and Rectification Rights Transferred To Assessing Office

This implies that your return has been processed. However, for rectification, you need to contact your Assessing Officer as the rectification rights have been transferred by CPC. So, instead of the online route, you have to submit your rectification request to your local AO directly. For more information/ query, please feel free to call us at +91 9660996655 or write to us [email protected] and our expert CAs will be happy to assist you.

Return Processed. Refund Adjusted Against Demand

If any previous amount is outstanding by the department, then the department will adjust the amount you owed in the current year’s refund. But before adjusting that amount they will send you a notice u/s 245, stating that they are adjusting your refund with the previous years' outstanding amount. You have to submit your response to it whether you agree with the department or not. If the response is not submitted timely then the department adjusts the demand and processes the return after adjusting the demand. For more information/ query, please feel free to call us at +91 9660996655 or write to us [email protected] and our expert CAs will be happy to assist you.


What are the different ways in which refund is issued by the Department?

The Refunds are sent by the Income Tax Department in two ways-
RTGS/NECS: This is the fastest facility provided by the department to get refunds. Under this facility your refund is directly credited in your bank account.
Paper Cheque: Under the new policy, income tax refund is not allowed through cheques.

The Income Tax Department has altered the process of claiming the ITR refund a bit. It has been made compulsory by the IT Department to pre-validate your bank account in which you wish to receive the income tax refund. Pre Validating a bank account alone is not enough, the individual also needs to link the PAN with the bank account.This has come into force from March 1, 2019.


Will I also get any interest for the delayed refund?

Yes, the Income Tax department takes the responsibility of granting a simple interest @ 0.5 percent per month to compensate for the delayed refunds .In the case of refund arising out of TDS / TCS / Advance Tax – Interest is calculated @0.5% for every month or part of a month for a period starting on 1st April of the relevant AY till the date of grant of refund, in case the return is filed on time i.e., on or before the due date. However, if the return is not filed within the due date the period of interest shall be from the date of filing the return to the date of grant of refund.In this case, if the refund is less than 10% of the tax determined under assessment or in intimation u/s 143(1), then you are not entitled to any interest.

In the case of refund arising out of self-assessment tax u/s 140A – Interest is calculated @0.5% for every month or part of a month for a period starting from the date of filing of return or payment of tax, whichever is later to the date of grant of refund. In this case also, if the refund is less than 10% of the tax determined under assessment or in intimation u/s 143(1), then you are not entitled to any interest

In case of variation in the amount of refund – Where, as a result of an order u/s 143(3) / 144 / 147 / 154 / 155 / 250 / 254 / 260 / 262 / 263/ 264 or an order of the Settlement Commission u/s 245D (4), the amount of refund payable has been increased or reduced, then the amount of interest shall be increased or reduced accordingly. The assessing office may issue a demand notice for recovery of excess interest paid in a case where the interest is reduced.

In any other case – Interest is calculated @0.5% for every month or part of a month for a period from the date of payment of tax to the date of grant of refund. Suppose, Ms. Gupta has paid advance taxes of Rs. 50,000 over the year when she was actually liable to pay a tax of Rs. 30,000 only, then, in that case, she is entitled to a refund of Rs. 20,000/- along with the interest @0.5%. Let’s say, that Ms Gupta filed her return on 5.09.2019 i.e., after the due date and the refund of Rs. 20,000 is received by her on 30.11.2019, then, the interest payable shall amount to Rs. 300/-. (Rs. 20,000 x 0.5% x 3 months)

Notes: Interest on Refund in case of Appeals/Revision of IT order In case, any refund arises out of Income Tax Appeal or revision of passed orders, then you are entitled to additional interest over and above the one specified earlier, for delay beyond the time prescribed by the department (3 months from the end of the month in which the appellate order is received by the PCCIT/ CCIT / PCIT/ CIT or in case of revision, 3 months from the end of the month in which the order is passed by the PCCIT/ CIT) @ 3 percent per annum for the period beginning from the date following the date of expiry of prescribed period till the income tax refund date.

Reason of Refund

When & How to apply for Refund Reissue?

First verify your Income Tax Return, then track the status of your income tax refund with the department. In case, you have still not received your refund then one of the reasons for the ITR refund delay could be due to a problem in your bank account or address details.

In such a situation, you can make a “refund reissue” request to the Income Tax Department but only after receiving an "Intimation"

Simple steps to apply for Refund Reissue:
  • Step 1: Go to http://incometaxindiaefiling.gov.in
  • Step 2: Log in with your PAN card details and password.
  • Step 3: After logging in, you will see a dashboard

    refund status dashboard

  • Step 4: Click on the pending action tab and refund reissue

    refund status

  • Step 5: When you click on refund reissue, you will see a window with a tab refund reissue.

    refund reissue request

  • Step 6: Once you select the “Refund Reissue” tab visible on your screen, you will be redirected to the refund reissue page where you need to create a refund reissue request.

    refund status

    Refund Reissue

  • Step-7: Select the bank account in which you want your refund and click proceed to move to the verification stage.

    Refund Reissue

  • Step 8: For successful submission of Refund Reissue request, users must have EVC. (Users must authenticate the refund reissue request through Aadhaar OTP & EVC code.

    Refund Reissue

    Refund Reissue

  • Step-9: Click on the submit Button

    Refund Reissue

    Refund Reissue

Once all these steps are done successfully, you can then check the refund status on the dashboard.


How to update Address/Email id/Mobile number for all communications with the Income Tax Department?

  • Step 1: Go to http://incometaxindiaefiling.gov.in
  • Step 2: Log in with your PAN and password.
  • Step 3: After logging in, click on Dashboard and you will see the options to edit the details.

    Refund Reissue

  • Step 4: To edit your contact details or bank account details, go to the respective tab and click update.

The changes made by you, in the bank/address details will be automatically updated in the centralized TIN database, and your refund amount will be reissued to you as per your updated records.


How to check income tax refund status?

You can check income tax refund status in the following manner:

With Income Tax login

To check the status of the refund, there is no separate tab for it in the new portal, just click on the service tab and then click on the “ refund reissue” tab and you will be redirected to the reissue status page.

Without Income Tax Login
  • Through TIN NSDL website

    refund status

  • Enter your PAN number
  • Select the assessment year for which you want to check the refund status
  • Enter Captcha Code and proceed
Through Tax2win

refund status

  • Enter your PAN, email address, and select the relevant assessment year
  • Enter acknowledgement number if you also want to know the receipt / e -verification status of your ITR

What are the possible reasons for Income Tax Refund delay?

There are various possible reasons for income tax refund delay

  • Not verified

    If you have filed your ITR but forgot to verify the same in such a case ITR will not be processed further and no refund will be issued.

  • Wrong Bank Account Number

    Your refund might get delayed in case the bank account number entered by you is found to be wrong. In such a case you can place a refund reissue request.

  • Delayed filing

    If you have filled your return after the due date then your refund also will get delayed accordingly.

  • Wrong computations

    If you have entered wrong information while filling your return then the IT department will ask you to provide clarifications for the same by issuing notices. The process is quite long and hence will delay your refund.

  • Defective Return

    If your return is marked as defective under section 139(9), then your refund will be delayed if you don't reply to the same timely.

  • Return Revised

    If you have committed a clerical mistake and have therefore revised your return then your refund will naturally get delayed.

  • Offline verification

    If you have verified the returns offline by posting it to Bangalore then it becomes quite obvious that your refund will get delayed. So, one should always opt for online mode rather than offline.


Can any other person get my refund?

As per the law, only the person whose excessive tax is deducted is eligible to get a refund. However, there are a couple of exceptions to this: When your income is included in any other person’s income (as per provisions of the law), then the latter alone can get your refund. In case of death, incapacity, insolvency, liquidation or any other reason when you are unable to claim/receive a refund, then your legal representative or trustee or guardian or receiver shall be entitled to your refund.


How to contact an assessing officer for an income tax refund?

  • You can read our guide which will guide you on how to know your AO details and then you can contact him/her. You may also choose to file a grievance on the income tax official portal.

FAQ on Income Tax Refund

Q- What is the difference between income tax return and refund?

Ans: The income tax return is furnishing your income and tax details yearly in prescribed ITR forms. Whereas, income tax refund means the amount due or received when taxes paid are greater than taxes actually payable. The refund can only be claimed after the successful filing of return.


Q- Is income tax refund & TDS refund the same?

Ans: Yes, broadly Income Tax Refund and TDS refunds are one and the same thing. The excess of TDS deducted over and above the actual payable amount is known as an income tax refund. But, an income tax refund can also result from excess.

  • Self Assessment Tax
  • Advance Tax
  • TCS

Q- When will the income tax refund be received?

Ans: Once the ITR filing has been completed you need to verify your income tax return. After verification the return is processed by the Income Tax Department and a refund is issued.


Q- Is income tax refund taxable?

Ans: No, the income tax refund is not taxable. However, the interest received is taxable and should be shown as “Income from other sources.”


Q- How to get a refund from the Income Tax Department?

Ans: To get a refund, file your return and e-verify the same, it is as simple as that.


Q- How to check bank details for income tax return?

Ans: Download your ITR form, and from there you can check your primary bank details.


Q- How long does the income tax refund take to get credited to the account?

Ans: There is no standard guideline for the same, but normally it takes 30-45 days to get refunded.


Q- Can income tax refund be credited to another account?

Ans: Yes, it is possible to credit your refund to another account in certain cases. For this:

  • You can file a revised return or
  • If the refund has already been initiated but failed to be credited in your bank account due to wrong details then you can submit refund reissue request