Income Tax Refund Status: How to check ITR Status Online?

What is the status of your tax refund? If you are not sure about your income tax refund status or ITR refund status, here is how you can do it. You will have to visit the TIN NSDL website and the income tax e-filing portal. But before that, you need to have some idea about income tax and how to check income tax refund status.

Income Tax: What is it?

Individuals and businesses are subject to income taxes, which are levied by the government on their annual income. The amount of income tax payable by an individual is often proportional to the individual's income; the higher his/her income is, the more income tax he/she has to pay. However, the government has decreed that certain types of investments are free of income tax.

The government uses income tax revenue to provide goods and services to citizens.

How Does Income Tax Refund Work?

The government refunds taxes paid by the taxpayer if the taxpayer paid more than they were legally obligated to pay. Income tax authorities will calculate your refund based on your income tax return. It typically takes three months for the revenue authorities to process income tax refunds.

There are some situations, however, in which a refund may be delayed:

• Incorrect bank information
• If you have an outdated or closed bank account
• Your Assessing Officer (AO) is assessing whether or not to validate your refund claim for income tax.
• If you have filed your income tax return after the deadline

Income Tax Refunds in A Few Cases:

These are some examples of situations where taxpayers can request a refund:

• You have no taxable income for the financial year. However, your fixed deposits have been subject to TDS.
• Current fiscal year income tax refunds relate to income tax adjustments that were pending from the previous financial year.
• As a result of filing self-assessment income tax returns, your tax obligation decreased as a result of permitted deductions, which entitles you to a refund.
• After your employer has already deducted income tax (TDS), you can request a refund if you have not yet claimed 80C deductions, investments, or expenses that are eligible for a tax deduction.

It is possible to claim a refund from the Indian government for income taxes paid in India and other countries.

Income Tax Refunds: How To Claim Them

In general, the process for claiming an income tax refund is the same as filing an income tax return, though you need to confirm that your ITR has been e-verified within 120 days of submitting the return. ITRs and refunds will not be processed if this is not the case.

How Does E-verification Work in ITR?

A taxpayer's ITR is submitted online, along with an electronic verification code (EVC) that verifies their identity by sending the EVC to their mobile number, which is then sent back to the taxpayer. The electronic verification code (EVC), which is generated by the Income Tax Department, can be retrieved via the electronic filing portal.

In most cases, your refund will be processed as soon as the Income Tax Department's software marks your income tax return. From the moment e-verification is done, the process usually takes forty to fifty days.

Your income tax refund will be informed to you via email as well as your mobile phone from the Income Tax Department before it is received. For your income tax refund to be received by the due date, your bank account must be pre-validated.

What is the Deadline For Claiming an Income Tax Refund?

There is a two-year limit on the amount of income tax refunds that a taxpayer can claim from the end of the financial year in which they are due. So if the taxpayer is claiming a refund for the year-end 31.03.2021, he or she must request the refund by 31.03.2023.

To claim a refund that has been pending for more than two years, the taxpayer must follow the instructions in the CBDT Circular No. 9/2015 filed with the CBDT for the processing of pending income tax refunds of up to six assessment years. Taxpayers must, however, comply with certain guidelines to be sure their application for an excused delay in claiming the refund is accepted by the income tax authorities.

How to Check Income Tax Refund Status?

The following two methods can be used to search for your income tax refund status online:

1. Access the TIN NSDL Website:

• Check the status of your Income Tax Refund by visiting NSDL's website.

• Your PAN number and assessment year must be entered along with the captcha code.
• The progress of your tax refund claim can be determined by clicking on the ‘Proceed’ button.
  

2. Using the e-filing Website

Your income tax refund status can be checked in two ways under this section:

• The e-Filing site has a feature that allows you to check the status of your income tax refund by logging in.

• Visit the incometaxindiaefiling website and log in to your account with your User ID and Password.

• You can view your return forms by clicking on the second option in the dashboard.
• To file an income tax return, choose the Income Tax Return option.
• An income tax return list will be generated for all returns that you have filed.
• Once you've selected the Acknowledgement Number, click on it.
• In addition to providing you with the status of your income tax refund application, this number can provide you with all the information on your income tax returns.
• Once you receive the refund in your account from the IT department, the status of your income tax refund will be updated in up to 10 business days.

e-Filing site, without logging in, also allows you to check the refund status of your tax refund.

• You can find more information at https://www.incometaxindiaefiling.gov.in/home
• On the homepage of the website, select "ITR Status" from the "Quick Links" section.
• Click on "Submit" to generate your latest income tax refund status once you have entered all the necessary information- the ITR Acknowledgement Number, PAN, and Captcha Code.

Key Takeaways

Make sure you file your income tax in time and learn how to claim a refund. You can use the services of NSDL and the e-filing website to check your income tax refund status. Direct taxation on income is the process by which the government collects money from individuals or organisations that the government deems liable for paying taxes to. The IT Department defines income slabs based on which the tax is calculated on the next taxable income of the entity. Credit management is also essential to avoid income tax issues. You can use OkCredit to keep track of your credits.

Also Read:

1) How is Dividend Income Taxed in India?
2) How to Start Your Own Income Tax Business?
3) How to prepare GSTR-4 annual return for composition taxpayers using offline tools?
4) What Are The Tax Deductions for Joint Property Owners?

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FAQs

Q. What is the procedure for refunding excess income tax paid by a taxpayer?

Ans. Upon receiving an income tax refund, the taxpayer is given a refund cheque that is mailed via speed post (Electronic Clearing Service).

Q. How can taxpayers obtain income tax refunds that are pending due to incorrect information?

Ans. Providing the department with the correct bank information will allow them to reprocess your refund if your refund is pending due to the incorrect details you provided.

To request a digital version, sign in to the e-filing site and click on 'My Account' under the 'service request' tab.

You should regularly check the status of the refund claim you made in your ITR once it has been filed and verified. You can use this to find out when your ITR was processed and your refund (if applicable). Also, it helps prevent mistakes from happening during the filing process.

Q. How long does it take to receive an income tax refund?

Ans. In general, your refund will be credited to your account after 20-45 days from the date of e-verification of your ITR.

Q. How can taxpayers get general refund-related information?

Ans. To seek refund-related assistance, taxpayers can either email refunds@incometaxindia.gov.in or call the toll-free number 1800-180-1961 of the Aayakar Sampark Kendra.

Q. What does the refund expire status mean?

Ans. Expired or cancelled income tax refunds have not been presented for payment within the validity period of 90 days. Refund reissue requests can be raised online or by communication with the Assessing Officer.