How to Check Income Tax Refund Status?

What is an Income Tax Refund?

An income tax refund is an amount that is paid by the income tax department to the assessee if he/she has made any extra payment in the form of TDS, TCS, Advance tax or self-assessment tax. They figure out this amount after considering all the deductions and exemptions at the time of assessment. 

How Income Tax Refund is Processed?

Income tax refund is processed after the e-verification of the tax return is done. This process usually took the time of 4-5 weeks. After the verification money is credited to the bank account of the assessee. But if you don’t get it within this time limit, you should check your tax return for any errors. Also, keep an eye on your email for notifications from the tax department about the refund. You can also check the refund status on the e-filing website to see the status of the refund.

How is the Payment of Income Tax Refund Done?

Direct Credit of Income Tax Refund

The income tax department credited the refund amount to the bank account of the assessee. To get your refund, make sure you provide the right bank account number and IFSC code when you file your return.

Income Tax Refund through a Cheque

If you get a refund through cheque, it will be sent to the address you put on your return using a speed post.

So, it’s important to give accurate bank details and address information.

How to Claim Income Tax Refund?

Always Remember the ITR (Income Tax Returns) Filing Date

For individuals, the last date for filing the return is 31st July. Make sure to file taxes before the due date to avoid any kind of penalty or interest.

Keep all the important documents handy

Before filing the return all the documents such as PAN card, Aadhaar card, Form 26AS, Form 16 etc. should be kept handy as you will need them at the time of filing of return. 

All this information needs to be filled in correctly to avoid any kind of hassle in getting a refund.

File your Income Tax Returns (ITR)

It’s essential to file your tax return accurately by reporting your income, investments, deductions, and taxes paid during the financial year. Taxes are paid through methods like TDS, TCS, advance tax, or self-assessment tax. A tax refund occurs when you’ve paid more tax than you owe. Therefore, it’s crucial to provide precise details to ensure that you receive any excess tax you’ve paid back as a refund.

Know your refund amount

After filing the Income Tax Return you can track your refund from the e-filing website. It’s always advisable to know and track the refund amount and if you do not get the same within the deadline or the refund is still with the authority you can check the reason for the same.

Send the ITR-V receipt to the Income Tax Department, Bangalore

Verification of return is as important as filing. After you’ve filed your Income Tax Returns (ITR), remember to verify them. You can do this online by generating an OTP linked to your Aadhar or receiving an electronic verification code (EVC) on your registered mobile number. Alternatively, you can physically verify your ITR by sending a signed copy of the ITR Form V acknowledgement to the CPC within 120 days of filing. Verifying your ITR confirms its accuracy, so it’s an important step

Getting your ITR refund

After the verification of the return, the income tax department processes the amount of refund to the bank account of the assessee. That is why after filling out the return it’s very important to know and track your income tax refund. Also double check the bank account details where the refund will be credited.

How to Check Income Tax Refund Status?

Checking Income Tax Refund Status on the E-Filing Website?

Step 1: Visit https://incometaxindiaefiling.gov.in/

Step 2: Log in to your account using your USER ID, which is your PAN number, and your password, and enter the captcha code.

Step 3: Go to the e-File tab> Income tax returns> View Filed  Returns.

Step 4: On this page click on “View Details” and you will get the lifecycle of the filed ITR.

Step 5: Enter the assessment year and submit.

Step 6: Click on the relevant ITR acknowledgement number to check your ITR refund status.

Checking Income Tax Refund Status on TIN/NSDL Website

Step 1: Go to tin.tin.nsdl.com/oltas/refundstatuslogin.html

Step 2: Enter your details such as PAN, assessment year etc. and then enter the captcha code.

Step 3: Click on “Submit” to view your ITR refund status.

What are the Different Types of Income Tax Refund Status?

• Refund is already credited to your bank: The Centralised Processing Center (CPC) has processed your refund, but it hasn’t reached your bank account yet. Contact your bank or CPC for further guidance.
• Refund has been encashed: This status means your Income Tax Return (ITR) refund has been processed, credited to your bank account, and withdrawn. If you believe there’s an issue, verify with your bank.
• Refund Not Determined: The Income Tax Department either found you ineligible for a refund or identified problems with your tax filing. Recheck your return for accuracy.
• Unable to credit refund due to incorrect account number: If you provided an incorrect bank account number, you’ll see this status. Update your bank details to request proper refund processing.
• Return Processed with No Demand and No Refund: Your ITR has been processed, and there’s neither a refund nor any tax demand.
• Return Processed and Refund returned Unpaid: This status suggests that there might be issues with your bank account details or refund address. Rectify the information to receive your refund.
• Return Processed and Refund Paid: This straightforward status indicates that your refund has been successfully processed and credited to your bank account.
• Return Processed, Refund Adjusted Against Demand: If you have any outstanding tax demands from previous years, the IT department may use your refund to offset them. You’ll receive any remaining amount after this adjustment. The IT department will notify you, and you must respond within 30 days. If there’s no response, the adjustment will proceed.

Frequently Asked Questions (FAQs)