When your tax amount paid is over and above the actual amount of tax payable, an income tax refund comes into play. You will be eligible for a refund of the tax amount you have paid. The taxpayer can check the Income Tax Refund Status, which helps him/her to check the state of the returns which has been processed by the Income Tax Authorities.
What is Income Tax Refund Status?
An income tax refund is a system where the Income Tax Department will return the excess amount of tax you have paid for the financial year. The refund process occurs when the amount of tax you have paid is more than the actual tax amount you needed to pay. This excess amount of tax paid can be reclaimed under Section 237 of the Income Tax Act, 1961.
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How to Know Status of your Income Tax Refund Online in 2021?
Via the TIN NSDL Website
- Step 1: First, you will have to visit https://www.tin-nsdl.com/
- Step 2: Select ‘Services’
- Step 3: Click on ‘Status Tax Refunds’
- Step 4: Hover over ‘Status of Income Tax Refunds’ and click on it
- Step 5: Fill in information like the applicable assessment year, and your PAN and enter the Captcha code
- Step 6: Click on ‘submit’
Via the Income Tax E-filing Website
- Step 1: Visit the website: https://www.incometaxindiaefiling.gov.in
- Step 2: Key in your password, user ID, and also the Captcha code
- Step 3: Select ‘View Return and Forms’
- Step 4: Go to the drop-down menu
- Step 5: Click on ‘Income Tax Returns’ and select the relevant assessment year
- Step 6: Select ‘submit’
Understand Your Income Tax Refund Status
| Income Tax Refund Staus | Meaning | Steps to Follow |
|---|---|---|
| Not Determined | The income tax department has not processed your tax return because the amount refundable was not been determined. | Recheck your income tax refund status after one week |
| No e-filing for this assessment year | This would mean that you have not filed your income tax return. It could also mean that you filed it manually. | Make sure to cross check the assessment year and amount of tax paid. You will also have to check your income tax return status. |
| Refund Paid | This means that your income tax refund has been transferred back to your bank account. | If you have not received any money, then you can always reach out to the bank or the post office. If you had chosen direct debit to your bank account, then contact your bank. If you had chosen ‘return via cheque, then you will have to track the cheque with the post office tracking reference number. |
| ITR Proceeds determined, and sent to Refund Banker | This means that your income tax refund has been processed. | You will have to wait for some time before the amount is credited to your bank account. You can always to get more details on your refund. You can also log in to the income tax department website to check the same. |
| Refund unpaid | The status implies that the income tax department has not delivered your refund. | You will have to crosscheck your address/ account number. Log in to the official income tax department website and correct the required information. You can also apply for a Refund Reissue Request. |
| No Demand No Refund | This means the tax amount deducted is correct and the tax department does not have to refund any amount to you. | You can revise your income tax return and also include the deductions that you may have forgotten while filing. Make sure to crosscheck the tax calculation with the income tax calculator. |
| Demand Determined | This status means that your demand for a refund has been rejected by the income tax department as their calculation shows that you need to pay more tax. | You have to crosscheck your e-filing record and also verify the information. If you need to pay more tax, you should do so before the deadline. |
| Contact Jurisdictional Assessing Officer | The income tax department requires a few clarifications on your income tax return details. | You will have to contact your jurisdictional Assessing Officer |
| Rectification Proceeds, refund determined, sent out to refund banker | The rectified income tax refund request has been accepted by the income tax department. | You will have to wait for a few days and then check your refund status. |
| Rectification Proceeded on, No Demand No refund | Your request for rectification has been accepted but there is no demand or refund. | You do not have to pay the income tax department any money. The income tax department also does not have to pay you any amount. |
| Rectification proceeded, demand determined | The rectified income tax refund request has been accepted. You still have to pay more tax. This will have to be paid within 30 days of this notice. | You will have to crosscheck your efiling. |
Process of Payment of Income Tax Refund
The payment for your income tax refund can be done in two ways:
- Direct credit of income tax refund amount:
- Income tax refund via a cheque:
Income tax refunds can be paid to your via NECS/RTGS. You should ensure that you mention all required details of your bank account in order for the tax refund amount to be credit promptly. These details include IFSC code of your bank branch, bank account number, and communication address. This will facilitate easy and efficient income tax refunds transfer.
If by any chance the bank account details provided by you are improper or unclear, then this refund will be paid to you via a cheque to your bank account
How to Claim Income Tax Refund?
You can claim your income tax refund under Section 237 of Income Tax Act, 1961 if you have paid over and above the actual tax amount payable. Previously, you were required to submit Form 30 for claiming your income tax refund. However, with e-transfer of refunds, you do need to fill and submit Form 30.
Your income tax refund can be claimed by filing the ITR and also verifying the information. This can be done electronically or physically. It should be done within 120 days of filing the return.
You have to make sure that the tax you have paid in excess is recorded in Form 26AS. If the excess amount of tax paid is not reflecting in your annual tax statement, then the assessing officer will reject your income tax refund claim.
Beware Fake Tax Refund Emails
The Income Tax Department has urged taxpayers to be aware of the ongoing frauds in the digital space. You have to stay clear and avoid falling into the trap of phishing links. The messages that are sent out by the hackers seem very genuine. They almost replicate messages from the income tax department. Many fraudsters are now using the ongoing pandemic to create click bait messages and scam taxpayers.
This tactic has easily scammed many. The Reserve Bank of India and Insurance Regulatory and Development Authority of India had recently rolled out a few cautionary messages urging taxpayers to not click on the fake links.
One should also be wary and aware of fake links sent through SMS. Please note that these are the official links of the tax department website: https://www.incometaxindia.gov.in and https://www.incometaxindiaefiling.gov.in/home.
FAQ’s on Income Tax Refund Status
- If my income tax refund has been delayed, will there be any compensation for me?
- When will I become eligible for an income tax refund?
- Will I have to pay tax on the refund amount?
- Do I have to file tax if I want to get an income tax refund?
- Is there a limit to the number of times the revised returns can be filed?
Yes, if your income tax refund has been delayed, then you will get 0.5% per month/ part of the month interest on your amount which was due. This interest will be calculated from 1 April of the assessment year right to the date on which your refund has been granted.
You will be eligible for an income tax refund if you have paid a tax amount over and above the actual tax payable. The refund amount will be calculated during the time of filing the ITR.
The income tax refund will correspond to the excess amount of tax that you have paid. This is not an income and is not taxable. However, your interest earned on the income tax refund will be taxable .
Yes, if you wish to claim your income tax refund for any excess amount of tax you had paid during a financial year, you will have to file an income tax return for the assessment year.
The returns can be filed multiple times within the one-year expiry limit.
