What is Income Tax Refund?

IncomeTax Refund status arises in a financial year, when you’ve paid more tax (either by way of TDS or Advance Tax or Self-Assessment Tax) than you’re supposed to after taking into consideration all the deductions and exemptions at the time of filing of Income Tax Return.


How can I claim my Tax Refund?

For claiming your tax refund all you need to do, is give a written proof to the Department about your Income and deduction details, by way of filing your Income Tax Return. Just make sure that you provide the details of all your income and tax deducted during the relevant year, so that the component of refund is reflected in your income tax return. Remember, to claim your IncomeTaxRefund , online filing of the return is a must.

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I forgot to file my Income Tax Return, can I claim my refund now?

Don’t worry, if you missed the bus, you can still file Belated Return under section 139(4) and you’re good to go! To know more about Belated Return, refer our blog https://blog.tax2win.in/belated-return-forgot-file-return/

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Please note that you can file your ITR of FY 2015-16 and FY 2016-17 last by 31-03-2018, so plan your working accordingly. After filing & e-verifying your return, use our tool to check your ITR refund status.


I filed my ITR with a refund but still not got refund?

First make sure that you have verified your Income Tax Return because once your ITR has been verified, only then it will be further processed by the Income Tax Department.

To know how to verify your Income Tax Return, refer https://blog.tax2win.in/simple-guide-e-verify-return/

If it’s already been verified, then the reason for not receiving your refund can be:
  • Your ITR is status still under processing:
  • Your ITR has been processed but Income Tax Department determined: No Refund Due
  • The Return has been processed after determining the refund, but 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).

What are the common reasons for Income Tax Refund enquiry failure? How they can be resolved?

Here is a list of reasons for the failure of refund along with the resolutions.

Refer https://incometaxindiaefiling.gov.in/eFiling/Portal/StaticPDF/Resolution_FAQ-refund_final.pdf


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

As per the procedure, Income Tax Department processes the refund only after you have filed and verified the Income Tax Return.

Generally, it takes 20-45 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 income tax refund?

Income Tax Return Filing is the prerequisite for getting Income Tax Refund. Income Tax Department gives you freedom to file previous two years’ return i.e. as of now, you can file return of F.Y. 2015-16 and F.Y. 2016-17.
But, if you have refund due for the years preceding the aforesaid year and you forgot to file 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 refund for assessment year-2011-12; 2012-13; 2013-14; 2014-15; 2015-16; 2016-17.
This circular can be used only where; your refunds is 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 refund.

Amount of claim (refund / loss) for any one assessment year Application To:
10 Lakhs or less Principal Commissioner/ 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 this case Income Tax department shall not pay any interest on the delayed refunds.


What to understand from different common Refund Status’?

Status Meaning

No e-filing has been done

You have either not filed your return or filed manually.

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

E-file your return now 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:

State Bank of India.

Address: SBIFAST 31, Mahal Industrial Estate, Off Mahakali Caves Road, Andheri East, Mumbai - 400 093

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:

State Bank of India.

Address: SBIFAST 31, Mahal Industrial Estate, Off Mahakali Caves Road, Andheri East, Mumbai - 400 093

Email: [email protected]

Toll free Number: 1800 425 9760

Refund Not Determined

Your Income Tax Return status is still under process at the Income Tax Department’s end. Just wait for some days and check income tax refund status again.

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 the defective Return. For exact reason, you can check this in your income tax website user account.

ITR Processed but need to submit rectification request

It may occur due to mismatch in the calculation of department & us. For this you may receive intimation from the department to submit once again your calculation sheet.

Return submitted. Processing rights transferred to Jurisdiction Assessing Officer.

It 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. -

https://incometaxindiaefiling.gov.in/e-Filing/Services/KnowYourJurisdictionLink.html

Need help from Expert CA ? Click here.

Return Submitted and not verified

It 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 daysfrom the date of filing.

How to e-verify, please visit at https://blog.tax2win.in/simple-guide-e-verify-return

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

It implies that your Income has been assessed by 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 E-Filing website under “efile tab” -> “Response to outstanding tax demand”.

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Return Processed. Refund determined and sent to Refund Banker.

It implies 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

It implies that income tax department has sent refund to you but either your address is wrong or bank details provided are incorrect, due to which refund was not processed.

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

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e-Return for this PAN and Acknowledgement Number has been Digitally signed

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

Return Submitted and under processing

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

Return Processed and Refund Paid

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

Return Submitted and verified

It implies that your return has been submitted and successfully verified, now it shall be processed by the income tax department. So, you have to wait for some more days.

Invalid Return

It implies that your return has been treated as 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 Officer

It implies that your return has been processed, however, for rectification, you need to contact 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 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 that whether you agree with department or not. If the response is not submitted timely then department adjust the demand and processed 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.


Can any other person get my refund?

As per the law, only the person whose excessive tax is deducted is eligible to get refunds. 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 can get your refunds.
  • In case of death, incapacity, insolvency, liquidation or any other reason when you are unable to claim/receive refund, then your legal representative or trustee or guardian shall be entitled to your refund.

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 you refund is directly credited in your Bank Account.
Paper Cheque: Under this facility the department sends account payee cheque to you. This is comparatively time consuming.


Will I also get any interest for the delayed refund?

Yes, Income Tax department takes the responsibility to make your wait for income tax refund a rewarding experience by granting simple interest @ 0.5 percent per month. However, this privilege is enjoyed by those taxpayers who have a refund of income tax of 10 percent or more of the actual tax liability. This is how the payment of interest will work:

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 relevant AY till the date of grant of refund in case the return is filed in time. 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 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, 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 / 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 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 5.09.2016 i.e., after the due date and the refund of Rs. 20,000 is received by her on 30.11.2016, then, the interest payable shall amount to Rs. 300/-. (Rs. 20,000 x 0.5% x 3 months)

    Notes:
  • The Income Tax Officer may issue a demand notice for recovery of excess interest paid.
  • In case, any refund arises out of Income Tax Appeal, 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 CIT) @ 3 percent per annum for the period beginning from expiry of prescribed period till the income tax refund date.

When & How to apply for Refund Reissue?

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

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

Here’s how you can apply for Refund Reissue:
  • Step 1: Go to http://incometaxindiaefiling.gov.in
  • Step 2: Log in with your PAN and password.
  • Step 3: After logging in, click on My Account tab and in the drop down select Service Request, then under request type select new request and afterwards select refund reissue under the Request Category.
  • Step 4: Click 'Submit' hyperlink located under Response column ⇒ After clicking submit, fill the additional details such as Bank Account number, Account Type, IFSC Code and so on ⇒ Click 'Submit'
  • Step 5: For successful submission of Refund Reissue request, user must have registered DSC or EVC. ( User must require to authenticate the refund reissue request through through Aadhaar OTP & EVC code.
Then select the mode of re-receiving the refund: ECS or cheque and confirm the bank account number and address details. When you select –

ECS Mode: You are required to verify the Bank Account Details or can even update by selecting the option” Do you want to update the Bank Account Details "Yes" Enter Bank Account Number, Type of Account & IFSC code.

Paper Mode: You are required to verify, change or update the Address Details, where you want the cheque to be delivered. You can select your address from the Category.

Click on the Submit Button

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 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 Profile Settings tab and in the drop down select My Profile
  • Step 4: To edit your contact details, go on to Contact Details tab and click Edit
  • Step 5: Contact details updated through OTP verification Received on Mail ID & Mobile No.


File ITR Support Questions? Visit the Support Center, or get in touch: +91 9660-99-66-55