Some taxpayers end up paying more than the required tax amount. The reason can be because of either tax deducted at source or miscalculated income tax amount. Anyway, whatever the case is, you can claim refunds if you have paid more than the applicable limit.
What is Income Tax Refund?
In case a taxpayer has paid more tax than he or she was required or liable to, due to tax deducted at source or advance tax, then it becomes necessary to claim an income tax refund. Hence, the ITR Refund process makes sure you have got every penny back that you have paid as extra tax.
The ITR refund process makes it very easy to get a claim and get back your extra cash. As per the Government, the refunds can take up to 20-45 days to get credited after being processed. But this process will begin only after you have claimed and verified your ITR.
How is the Income Tax Refund Processed?
This is a very simple process to complete. The processing of refunds will begin as soon as you have filed and verified your ITR either online through an electronic portal or offline by sending a hard copy of your ITR-V acknowledgement. After this, your tax liability and your paid tax amount will be compared by CPC to initiate the refunds if you have paid extra.
How to Claim Income Tax Refund?
To claim an income tax refund, there is no distinct procedure. All you have to do is file your returns correctly. Whether you are eligible for a tax refund due to reclaiming TDS, rectifying double taxation, or any other situation, it is essential to ensure accurate tax filing and verification.
- Make sure to file your taxes before the deadline, which is typically the 31st of July for individual taxpayers.
- Correctly filing your taxes is crucial to qualify for a refund. Take care to input accurate details in the ITR form, referring to Form 16, Form 24AS, TDS slips from bank interest, self-assessment taxes paid, and other relevant documents. Handling multiple TDS slips can be cumbersome, but you can simplify the process by using ET Money’s TDS Calculator, which estimates the deducted TDS amount based on the specific nature of the income.
- Once you have gathered all the correct information, the next step is to determine your eligibility for a refund.
- Familiarize yourself with the refund amount you are entitled to, as this facilitates tracking the expected credit.
- After filing your ITR returns, remember to verify them, which is equally important. Verification can be done online or through physical means. Electronic verification entails generating an OTP linked to your Aadhar or using an electronic verification code (EVC) sent to your registered mobile number. Alternatively, you can physically verify your ITR filing by sending a signed copy of the ITR Form V acknowledgement to the CPC within 120 days of filing your returns.
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How to Check Your IT Refund Status Online?
- First, visit the official website.
- Now login with your User ID. Your User ID will be the combination of PAN, password, and captcha.
- Now, navigate to the ‘View Returns / Forms’ tab.
- On the next page, find this ‘Select An Option’ and then tap on ‘Income tax Returns’ in the drop-down menu.
- Enter your assessment year and submit it.
- Finally, enter your acknowledgement number and check the status.
Through NSDL Website:
- First, visit the official portal.
- Now enter your details such as PAN, assessment year and captcha.
- Submit the details and view your status.
