How to Check Income Tax Refund Status Online? Explained

The word “Refund” means repayment of a sum of money. As the meaning suggests, Income tax refund also means a refunded amount that is paid back to the taxpayer in case he makes an excess payment of income tax against the actual income tax that is liable for a given year. 

When can an income tax refund be claimed?

The situations in which a taxpayer can claim an income tax refund are as follows:

• If an excess TDS amount is deducted: The deductions of taxes are generally made by the employer after properly considering various types of documents availed to him by the employee. But sometimes the employee may fail to properly submit proof for some of the investments like 80 C or 80 D, etc before the end of the financial year. And hence, the employer ends up doing a higher deduction. In this case, the employee can claim an income tax refund by filing his return of income.Some individuals have incomes less than the basic exemption limit i.e. their income is less than Rs. 2.5 lakhs. Yet, sometimes taxes are deducted from their income. In such a case, they can claim an income tax refund.

• Excess TDS deduction from interest income: Banks may end up deducting an excess amount of TDS on the interest received on FDs or bonds if the amount is more than the maximum limit set in the Income Tax Act.

• If an excess amount of advance tax is paid: If the advance tax that is paid on self-assessment basis was more than the actual tax liable for the given financial year. In this case, an income tax refund can be claimed.

• Taxpayers may be asked to pay an additional tax: Some income tax officers make some additions to the income of taxpayers during the proceedings of income tax. Such add-ons can be deleted by appealing to authorities and the taxpayers will be given an Income Tax Refund.

• Double Taxation of Income: Such a situation arises when a taxpayer receives income from some other country but lives in a different country. In order to avoid double taxation of income, India has done a DTAA(Double Taxation Avoidance Agreement) with many countries. This agreement helps taxpayers to claim an income tax refund if you are a non-resident Indian and the income is liable  for taxation in other countries.

How can Income Tax Refund be claimed?

 The easiest way to claim an income tax refund is to FILE ITR Online. However, the ITR needs to be verified either by online or by offline method in order to get an income tax refund. Also, the refund will be assessed and verified by the IT department. A refund will be granted only if the claim for income tax refund is valid and legal.

Process to Check Income tax refund status

The refund will be processed by the IT department and the status of income tax refund can be checked by the following two ways:

• By the income tax portal for e-filing
• By the NSDL Website

By Income Tax Portal for e-filing

Step 1: Visit the official portal of income tax for e-filing.

Step 2: Using your User ID and password, log in to your account.

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Step 3: Click on the ‘e-file’ option and select ‘Income Tax Returns.’ Under this, click on ‘View Filed Returns.’

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Step 4: Check the status of your current as well as the previously filed returns.

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Step 5: Click on ‘View Details.’ A new window will appear on screen which displays the status of income tax refund.

By Using the NSDL Portal

Step 1: Go to the official website of NSDl in order to check the income tax refund status.

Step 2: A screen will appear, enter your details like PAn, the assessment year, the captcha and click on ‘Submit.’

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Step 3: Once you click on ‘Submit’, you will see a screen that displays the status of your income tax refund.

Time Limit to claim an Income Tax Refund

An income tax refund can only be claimed if an ITR has been filed.Since, the claiming process of income tax return depends immensely on ITR filing, the time limit to claim an Income tax return also remains the same. The latest time limit to claim an income tax refund and to file your ITR is 31st December of the respective assessment year.

Appeal for Income Tax Refund

If an order has been passed in response to the appeal made, then there is no requirement to file for an income tax refund. This is because such a refund will be credited by the ITR department automatically. Simply put, the taxpayer does not have to file for an additional request to claim income tax refund related to appeals.

Amount that can be received as an  income tax refund

Whenever a taxpayer files for an income tax return, the income tax department will process this refund and the applicant will get an intimation from the CPC which will be responsible for the confirmation of the amount to be received by the applicant as an income tax refund. The refund will either be more or less or the same as the amount calculated by the CPC. This amount is the actual refund amount that a taxpayer receives from the income tax department.

Can income tax refund be taxed?

An income tax refund is not liable for taxation. This is because the refund is actually the extra tax liability that is paid from the total income that is liable for taxation for a particular year. However, an interest on the refund is liable for taxation as it will be considered as income from other sources.