WHAT IS INCOME TAX REFUND
An income tax refund refers to the amount of money that a taxpayer receives return from the government when they have paid more in taxes during the year than they actually owe. It arise when the taxpayer's total tax liability is less than the amount of taxes withheld from their income by their employer or paid through estimated tax payments.
When individuals or businesses file their annual income tax returns, they calculate their total tax liability based on their income, deductions, and credits. If the amount of tax they owe is less than the amount already paid through reserve or estimated tax payments, they are qualified to get a refund.
The refund represents the excess amount of taxes paid, and it is typically return back to the taxpayer through a direct deposit to their bank account or as a physical check sent by mail. The refund process can take 20-45 days after ITR is processed, in case refund is refund is not received in your bank account, you have to contact the central processing centre (CPC).
STEP-BY-STEP GUIDE TO GET INCOME TAX REFUND ARE AS FOLLOWS:
1. File your income tax return: Starting by filing your income tax return (ITR) for the relevant assessment year (AY). You can file your Income Tax Return online through the Income Tax Department's e-filing portal or offline by submitting a physical return at an income tax office, or you can use offline tools like 'winman software' it's easy to use.
2. Verify your ITR: Once you have filed your ITR, verify it using any of the available methods such as Electronic Verification Code (EVC), Aadhaar OTP, or by sending a signed & print a physical copy and to the Centralized Processing Center (CPC) within 30 days of filing.
3. Processing of the return: After you have filed and verified your ITR, the Income Tax Department will process your return. This involves scrutinizing the details provided, cross-checking with Form 26AS (which reflects TDS), if your balance of advance tax under form 26 AS more than your tax liability you can get your refund amount in your bank account after approving by tax officer.
4. Intimation under Section 143(1): Once the processing is complete, you will receive an intimation under Section 143(1) of the Income Tax Act. This intimation will provide details of any refund due to you. This is basically computer generated message stating any error or interest found payable or refundable.
5. Refund issuance: If you are eligible for a refund, the Income Tax Department will initiate the refund process. The refund amount will be directly debited to the bank account mentioned in your ITR. Alternatively, you can opt for a refund via a physical cheque. if you want to save time you should be get your amount in your bank account directly.
6. Track refund status: You can track the status of your income tax refund online through the Income Tax Department's website. By entering your PAN (Permanent Account Number) details and relevant assessment year to check the status.
7. Contact the Income Tax Department: If there are any delays or issues regarding your refund, you can contact the Income Tax Department's helpline or visit the nearest income tax office to enquiry about the status and seek assistance.
It's important to note that the time taken for processing refunds can take time, and it's advisable to ensure accurate and complete information in your ITR to avoid any delays or complications in the refund process.
Also, Note that not everyone receives an income tax refund. Some taxpayers may end up paying additional taxes if they have not paid enough throughout the year. The refund amount basically based on individual circumstances, such as income level, tax deductions, credits, and any excess payments made.
FAQ
How do i know if my ITR money was refunded ?
- Login into e-filling portal using user id & password.
- Go to my account and click on ' refund/demand status'.
- Check below details are given. reason ( for refund failure if any) mode of payment is displayed.
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