Income Tax Refund

Income Tax Refund is the difference between the tax amount paid and the actual payable amount. If the amount paid exceeds the actual payable amount, then you can claim the ITR. One cam claim refund by filing Form 30. This is noted under Sections 237 to 245 of the Income Tax Act, 1961.

The Procedure to claim Income Tax Refund :

The simplest way of filing Income Tax refund is declaring investment in Form 16 like investment done in insurance premium, house rent, investment in equities, tax saving FDs, etc, mentioning investment details is not sufficient, make sure to submit the necessary investment proofs also. Failure on so, you will end up paying extra taxes, to avoid being in such a situation, fill out Form 30.

What is Form 30? :

Form 30 is basically a request for you case to be looked into and getting income tax refund. File ITR before the end of financial year. Your claim needs to be accompanied by a return in the form (prescribed under section 139).

Due date to claim Income Tax Refund :

To get income tax refund, it must be claimed within one year from the date on which the assessment year is ending. In case, you missed out the due date of filing ITR, you can file a belated return till 31st December.

Important facts related to Income Tax Refund :

  • Income Tax Refund will not be considered if successive assessment years are already completed.
  • Your Income Tax Refund should be less than Rs 50 Lakh for a single assessment year.
  • You are not eligible for any interest payment on refund of late claims.
  • If the delayed claims require any sort of verification, the assessing officer could reconsider the claim.

Who is Eligible for Income Tax Refund?

  • All those who have paid excess tax.
  • If your TDS deducted from interest on securities, dividends, debentures or from your salary is higher than tax payable.
  • If the tax charged, based on regular assessments, gets reduced because an error in the assessment process was resolved.
  • The same income is taxed in a foreign country (with which the government of India has an agreement to avoid double-taxation) and in India as well.
  • If you find, after considering the taxes you've paid and the deductions you are allowed, that the tax paid amount is in the negative.

How is the Income Tax Refund Processed?

The Income Tax Authorities headquartered in Bengaluru office responsible for processing the Income Tax Refund. The refund will be credited into your bank account, one you are done with the ITR filing process. If any tax reimbursement arises at the time of processing the ITRs, the IT refund banker receives the orders for refund of income tax which are generated and transferred by the IT authorities.

Mode of Payment of Income Tax Refunds :

  • Direct Transfer:
    • The most common method of transferring the refund is taxpayer’s bank account. The transaction can take place through NECs/ RTGS. For smooth transferring process, make sure all bank details must be correct and accurate. It helps in enabling fast and fast movement of funds directly to account.
  • Income Tax Refund via Cheque :
    • It is another way of transferring the Income Tax refunds. It works well if bank details shared by the taxpayer at the time of filing Income Tax Return is not clear or incomplete.

Steps to apply for Refund Reissue :

Verifying Income Tax return, you can reach out to Income Tax Department to check your income tax refund status. The major reasons of delaying income tax refund is incorrect bank account or address information. In this case, you need to request a ‘refund reissue’ to the IT department.

  • Log on to the official website of the income tax department.
  • Log in to your account.
  • A dashboard will start appearing to the screen.
  • Click on the ‘Pending Actions’ option.
  • Click on the ‘Refund Reissue’ button.
  • The refund reissue page will appear on the screen. Here, click on the ‘Create Refund Reissue Request’ option.
  • Choose the bank account where you wish your refund to be deposited.
  • After that. ‘Proceed to Verification’ button.
  • An Electronic Verification code (EVC) is required to submit the request for refund reissue.
  • Click on ‘Submit.’ The status of your refund reissue will be displayed on the dashboard.

In case of doubt or queries?

  • You can reach out to Aayakar Sampark Kendra toll free no. 1800-180-1961 or email at refunds refunds@incometaxindia.gov.in.
  • For queries related to refund or any modification in refund record with respect to return processed at CPC Bangalore, you may call the toll-free number 1800-425-2229 or 080-43456700.
  • For any payment related query, you should contact SBI Contact Centre Toll Free No. 1800-425-9760.

How do I rectify the mistakes in the name, account number on the refund cheque received by me?

If you face any discrepancies regarding name or account number, send cheque to CMP operations Center, State Bank of India, Survey No.21 Opposite: Hyderabad Central University, Main Gate, Gachibowli, Hyderabad -500019 requesting for the cancellation of the cheque.

In a separate letter mention the mistake and what should be the correct information instead. You can also make modifications in your name and account number by visiting the official website of Income Tax Department of India and log in to the portal to modify your name to modify your name and account number. Once that is done, the information will be initiated and a new refund cheque will be sent to you.

Frequently Asked Questions

  • On paying of excessive tax, how can I claim excess refund back?
    To get your additional tax refund, file your income tax, following which you can get your income tax return smoothly.
  • What is Form 26AS ?
    Form 26AS is a credit statement which includes all l information regarding the details of the tax deducted on your income. You can pay your tax in the form of Tax Deducted at Source (TDS), Tax Collected at Source (TCS) and Advance tax or self-assessment tax or payment of tax on regular assessment.
  • Do I have to submit any documents or proofs while filing my income tax returns?
    To file income tax returns, you need to provide any documents or investment proofs while filing your income tax returns. You will have to provide the details of your Aadhaar in order to successfully file your income tax returns.
  • What is the difference between Income Tax Refund and Income Tax Return?
    The Income Tax Return refers to the income and tax you need to pay annually in the specified ITR forms. An income tax refund is the amount owed or received if excess taxes are paid. The refund is issued once the return has been successfully filed.
  • Will my income tax refund be subject to tax?
    No, the income tax refund is non-taxable. However, the interest earned on the refund will be subject to taxation and hence, it must be reported as ‘Income from other sources.
  • In how many days income tax refund credited to your bank account?
    In 30-45 days, income tax refund credited to bank account.
  • Can I update my mobile number with the income tax department?
    Yes, you can visit the official website of the income tax department and log in to your account to update your bank account and contact details.