Know How to Check Income Tax Refund Status

The income tax department offers us an online facility for tracking the status of refunds. You can do this by filling in details in the income tax refund form through the Income Tax (IT) department’s website. also do this on the TIN NSDL website. Your PAN number and assessment year should be accurate to check the status of your IT return. You are eligible for an income tax refund if you pay more than the actual amount of tax liability for the financial year. Income tax refund status can be viewed 10 days after the department sends the refund. Read on for a step-by-step guide that will provide information on how to check income tax refund status

What is a Tax Refund?

A tax refund arises when a taxpayer pays excess tax than the actual tax liability for the financial year. The Income Tax Department returns this excess tax paid by the individual by processing an income tax refund. Let us explain this with an example to illustrate the concept. 

Suppose an employer of a salaried individual deducted extra tax via the TDS mechanism because the individual could not declare the details of his tax-saving investments on time. In this case, if the tax deducted is more than the tax liability of the employee, then the employee becomes eligible to claim an income tax refund equal to the amount of excess tax deducted by the employer.

An individual is eligible for an income tax return under the following conditions:

  1. When the income is considered twice, i.e., the double taxation of income.
  2. When the amount of tax deducted from your salary, interest on bank deposits, interest on bonds, etc., exceeds your actual tax liability for the particular financial year.
  3.  When the advance tax is paid via self-assessment is more than the tax liability.

After a taxpayer files a return, the income tax department informs them from the CPC under Section 143(1) about the amount eligible for a refund. 

Also Read: How Do I Rectify My ITR? Section 154 of the Income Tax Act Explained

Check ITR Refund Status

This section explains how to check the income tax refund status. The refund status can be checked online by two means. The first is through the TIN NSDL website, and the second is by logging into the E-filing portal of the Income Tax department.   

TIN NDSL Portal: 

Follow the given steps to file a return through the NSDL portal (National Securities Depository Limited portal):

Step 1: Open the NDSL website to check the refund status. 

Step 2: Enter your PAN number.

Step 3: Choose your assessment year. 

Step 4: Enter the captcha code. 

Step 5: Click ‘Proceed’

Income Tax Department E-Filing Portal

Step 1: Visit the income tax E-filing portal.

Step 2: Log in to the E-filing website with the correct User ID, Password, Date of Birth / Date of Incorporation, and Captcha.

Step 3: Go to My Account.

Step 4: Click on Refund/Demand Status. 

Step 5: Select the Income Tax Return from the given drop-down menu and click on submit. 

Step 6: Click on your acknowledgment number corresponding to the tax filing in which you have claimed the refund. 

Step 7: You can review the return details and the income tax refund status on the new page.

Different Refund Status

Now that you are well acquainted with how to check income tax refund status online, it is important to know what the different refund statuses are. Given below is the list of the most prominent refund statuses with descriptions to help you understand your tax refund process better. 

  • Refund Paid: This status is displayed when the return is successfully processed. Check with the bank to confirm the receipt of the refund.
  • No Demand No Return: Your tax calculation matches the IT Departments. You are neither supposed to pay for any deficit amount of tax nor eligible for a tax return. Just hold on to the return records in case they might be required later for a re-appeal. 
  • Refund Status Not Determined: The ITR has not been processed yet. Come later to recheck the status. Recheck the status after a few days. 
  • Refund Determined and Sent out to Refund Banker: The tax return has been accepted, and the refund banker has been informed. Wait for the refund to be credited to your account, or contact the refund banker to know the refund status.
  • Refund Unpaid: The tax return has been accepted by the Income Tax Department but the refund has not yet been initiated. There can be two main reasons for this. In the first instance, your bank details for the refund are incorrect, and in the second instance, if you opted for a cheque refund, your address is incorrect. The reason is displayed on the portal itself. Thus take the appropriate actions to rectify the mistake.
  • Demand Determined: The tax calculations do not match, and an additional tax has to be paid. This means you have to fulfill a tax demand now. In this case, verify the details and find where the error lies. Suppose there is a possible mismatch, file tax in the given timeline. In case of no error, file an appeal with all the required documents justifying your claim.
  • Defective: The department has found errors with the submitted return.
  • Expired: This status represents that the refund was not submitted for the payment within the allotted 90-Day window. In this case, the taxpayer is eligible to file for a refund reissue.

Also Read: NSDL (National Securities Depository Limited) – Benefits & Services

Final Words

An income tax refund is due to the taxpayer only if they have paid higher taxes than the actual tax liability. One can file for a return by visiting the portals verified by the Income Tax Department. The request is then analyzed and processed by the IT Department which then decides whether the taxpayer is eligible for a refund If the request is on the right grounds, the amount is processed in the bank account, and if it is incorrect, the request is declined. 

FAQs

Is it necessary to file your income tax return to get your income tax refund?

Yes, filing your ITR for the financial year is mandatory to obtain an Income tax refund. A refund cannot be assessed by the department if you do not file a return. And the basis of the refund is lost in the absence of return filing. Hence, filing ITR is vital to get a refund.

Can my refund status be checked by someone else also?

Yes, your CA or any other authorized representative can check your return status on your behalf.

I checked the status of my income tax return, and it displayed ‘Refund Expired.’ How can I reapply?

Login to the income tax e-filing portal, go to My Account, then proceed to ‘Refund Reissue Request.’ Select the mode of receiving the refund, provide the address and fill in the mandatory details and click on the ‘Submit’ button. This will submit a fresh requisition to the IT department.

Is checking income tax refund status a paid facility?

No, you do not have to pay anything to check your income tax refund status. It is free of cost, and you can use the facility at any time. Every taxpayer can avail of this feature on the TIN NSDL portal or the e-filing website of the Income Tax Department.

How can I update my Address/ E-mail ID/ Mobile Number, which I previously mentioned in my ITR?

Login to the income tax e-filing portal, go to ‘My Profile Settings,’ then proceed to ‘Update Contact Details.’ Update the required details of Address/ E-mail ID/ Mobile Number and then click on ‘Submit.’ The requisition might take some time to update your profile. Hence, wait for at least 15 days before reapplying for an update.

Catalysing Investments at Wint Wealth

Chandhana is a budding investment professional with growing expertise in the capital markets. She has completed her Bachelors in Business Administration with a specialisation in Finance from Christ (deemed to be) University,Bangalore. She is also a CFA L2 candidate. She is currently working as an Investment Associate at Wint Wealth.

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Disclaimer: This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The article may also contain information which are the personal views/opinions of the authors. The information contained in this article is for general, educational and awareness purposes only and is not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision, whether related to investment or otherwise, taken on the basis of this article.

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