Income Tax Refund Last Updated : 02 Jun 2020

Income Tax refund arises in case of a mismatch between the tax amount paid and the actual payable amount. If the amount paid is higher than the actual amount payable, a refund is initiated. The Form 30 is used for the same purpose.

Income Tax refund
Income Tax refund

Under the income tax and other Direct Tax laws, refunds arise in those cases where the amount of tax paid by a person (or paid on his/her behalf) is greater than the amount on which he/she is properly chargeable. This is noted under Sections 237 to 245 of the Income Tax Act, 1961.

How can I get IT refund in India?

When you file the return of your income, you can avail tax refund. In general, the date for filing income tax returns is July 31 of every year unless extended.

What is the Income Tax amount that I will get back?

In order to find the amount of income tax that you will get back as the refund, you must calculate the tax liability that is associated with you. If the amount that you have paid as taxes is more than the tax liability, then you will get the extra amount as a refund.

How can I claim my Income Tax refund?

The easiest way to file for your tax refund is to declare your investments in Form 16 (life insurance premiums paid, house rent being paid, investments in equity/NSC/mutual funds, bank FDs, tuition fees, etc.) while filing your IT return and submit the necessary proofs. If you’ve failed to do so and have been paying extra taxes you think you could have avoided, you will need to fill out Form 30.

Form 30 is basically a request for your case to be looked into and the excess tax that you have paid is refunded. Your income tax refund claim needs to be submitted before the end of the financial year. Your claim needs to be accompanied by a return in the form (prescribed under section 139).

The Form 30 format is as follows: (Sample)

I, (your name), of (address), do hereby state that my total income computed in accordance with the provisions of the Income Tax Act, 1961, during the year ending on (year) being the previous year for the assessment year commencing on the 1st of April (year), amounted to Rs. (amount); that the total income tax chargeable in respect of such total income is Rs. (amount) and that the total amount of Income Tax paid or treated as paid under:

Section 199, is Rs. (amount).

I, therefore, request for a refund of Rs. (amount).


I hereby declare that I was resident/resident but not ordinarily resident/non-resident during the previous year relevant to the assessment year to which this claim relates and that what is stated in this application is correct.

Dated: (date)


It is important to note that:
  • This claim should contain a document of proof of return of income in a prescribed form, unless you’ve already made such a claim to the Assessing Officer.
  • Non-residents whose income is subject to TDS should make the claim for refund to the “Assessing Officer, Non-resident Refund Circle, Bombay”.

If you have been charged tax under the provisions of Section 192 – 194, Section 194A and Section 195 on your income (for dividends, etc.), the claim should be accompanied by the necessary certificates recommended under Section 203.

How is Income Tax refund processed?

The Income Tax authorities who are present at the Centralised Processing Centre (CPC) in Bengaluru are responsible for processing the Income Tax (IT) refund. The refunds are processed once the assessee files his/her Income Tax Returns (ITR). If any tax reimbursement arises at the time of processing the ITRs, the IT refund banker receives the orders for refund of income tax which are generated and transferred by the IT authorities.

How is the payment of income tax refund made?

The payment of income tax refund is made in one of the following methods:

  • Direct transfer of the amount to be refunded to the taxpayer’s bank account: This is the usual method which is used for the purpose of transferring the income tax refund amount to the taxpayers. The transaction might be made through NECS/RTGS. It is important on the part of the taxpayer to make sure that all the details pertaining to his/her bank account are properly furnished in the return forms at the time of filing the returns. This enables the easy and fast movement of funds directly to the account.
  • Income Tax Refund via cheque: This method is an alternative option for transferring the Income Tax refunds. In the case of the bank details provided by the taxpayer at the time of filing the Income Tax Returns (ITRs) is not unclear, incomplete, or wrong, the Income Tax authorities issue a cheque addressing the account number which is furnished by the taxpayer at the time of filing his/her returns.

How do I track my Income Tax Refund?

The IT department allows you to track the status of your refund. If your refund procedure has not been completed by your officer in charge, you will receive a message notifying you of the same.

Just follow these two steps to claim income tax refund.

  1. Get Refund through Direct Transfer: Excess tax paid can be refunded to you by crediting your bank account with ECS transfer. RTGS/NECS are also used to transfer the tax refund directly into your account, using your 10-digit account number and MICR code, through the State Bank of India. You can track your income tax refund through the website or through NSDL-TIN website by clicking on “Status of Tax Refunds”. You will then need to enter your PAN number and assessment year for refund details.
  2. Refund by cheque: You can track this with the speed post service that has been tasked with delivering it, using the reference number that the IT department will give you.

Due Date to Claim Income Tax Refund

Income tax refunds must be claimed within one year from the date on which the assessment year ends. However, in certain cases, assessing officers tend to entertain refund claims that were filed after the specified due date. Here are some points you need to keep in mind:

  • Income tax refund claims will not be considered if six successive assessment years have been completed.
  • The refund amount must be less than Rs.50 lakh for a single assessment year.
  • Interest will not be offered on refund of late claims.
  • If the delayed claims require verification, the assessing officer could reconsider the claim.

Interest on Delayed Income Tax Refund

Under Section 244A of the Income Tax Act, in case the refund payment is delayed, the Income Tax Department is liable to pay interest at 6%. The interest applicable to your refund amount shall be computed from the date on which the tax was paid to the date on which the refund was made. For example, if you claim a refund of Rs.10,000 for AY 2017-18 and you received the refund in March 2018, the interest applicable to your refund will be computed from April 2017 to March 2018.

Am I eligible for an Income Tax refund?

There are many cases wherein you will be eligible for a refund. Some of them are:

  • If the tax you’ve paid in advance on the basis of self-assessment is more than the tax payable on the basis of regular assessment.
  • If your TDS from salary, interest on securities or debentures, dividends, etc. is higher than the tax payable on the basis of regular assessment.
  • If the tax charged, based on regular assessments, gets reduced because an error in the assessment process was resolved.
  • The same income is taxed in a foreign country (with which the government of India has an agreement to avoid double-taxation) and in India as well.
  • If you have investments which offer tax benefits and deductions that you have not declared.
  • If you find, after considering the taxes you’ve paid and the deductions you are allowed, that the tax paid amount is in the negative.

Income Tax Refund FAQs

  1. If I have paid excessive tax, will it be refunded to me?
  2. Yes, if you have paid excessive tax then it be refunded to you. In order to get your additional tax refunded you will have to first file your income tax, following which your return is processed. If there is any excessive tax paid by you, the government will refund it back to your bank account via Electronic Clearance Service (ECS). However, you must ensure that your bank account is linked with your PAN so that it becomes easier for you to get your refund in a hassle-free manner.

  3. What is Form 26AS? In what forms can I pay my tax
  4. Form 26AS is a credit statement which basically contains all the information regarding the details of the tax deducted on your income. You can pay your tax in the following forms given below:

    • Tax Deducted at Source (TDS).
    • Tax Collected at Source (TCS).
    • Advance tax or self-assessment tax or payment of tax on regular assessment.
  5. Do I have to submit any documents or proofs while filing my income tax returns?
  6. No, you are not required to provide any documents or investment proofs while filing your income tax returns. However, you will have to provide the details of your Aadhaar in order to successfully file your income tax returns.

  7. How do I rectify the mistakes in the name, account number on the refund cheque received by me?
  8. In case of any discrepancy regarding your name or account number, send back the cheque to CMP Operations Centre, State Bank of India, Survey No.21 Opposite : Hyderabad Central University, Main Gate, Gachibowli, Hyderabad –500019 requesting for the cancellation of the cheque. In a separate letter mention the mistake and what should be the correct information instead. You can also modify your name and account number by visiting the official website of Income Tax Department of India and log in to the portal to modify your name and account number. Once that is done, the information will be initiated and a new refund cheque will be sent to you.

  9. Whom should I contact for refund related queries?
  10. In case of any queries related to the refund of excessive tax, you can contact Aayakar Sampark Kendra Toll Free No. 1800-180-1961 or email at refunds For queries related to refund or any modification in refund record with respect to return processed at CPC Bangalore, you may call the toll-free number 1800-425-2229 or 080-43456700. For any payment related query, you should contact SBI Contact Centre Toll Free No. 1800-425-9760.

News About Income Tax Refund

  • Rs.26,242 crore worth of refunds issued by the Income Tax Department since April 2020

    On 22 May 2020, the Income Tax Department announced that Rs.26,242 crore worth of refunds has been provided since April to 16.84 lakh taxpayers. The tax department has been making efforts to process the refunds quickly so that firms and individuals have money to deal with the coronavirus crisis. According to the Central Board of Direct Taxes (CBDT), more than 16.84 lakh taxpayers have received their refunds between 1 April 2020 and 21 May 2020. As per a statement given by the CBDT, Rs.11,610 crore of corporate tax refund has been provided to 1,02,392 taxpayers and Rs.14,632 crore of income tax refund has been given to 15,81,906 taxpayers. Since the announcement of the Atamanirbhar Bharat Abhiyan, the refund process has been expedited even faster. In the previous week, a sum of Rs.2,050.61 crore has been released to 37,531 income tax assesses and Rs.867.62 crore has been provided to 2,878 corporate tax assesses.

    22 May 2020

  • Tax deadlines for FY2019-20 extended to 30 June

    Deadlines for various tax-related filings for the financial year 2019-2020 have been extended till 30 June 2020 on account of the lockdown and the effect of the coronavirus on the economy. The Finance Ministry’s press release dated 31 March states that, "The date for making various investment/payment for claiming deduction under Chapter-VIA-B of Income-tax Act, 1961 which includes Section 80C (LIC, PPF, NSC etc.), 80D (Mediclaim), 80G (Donations), etc. has been extended to 30th June, 2020. Hence the investment/payment can be made up to 30.06.2020 for claiming the deduction under these sections for FY 2019-20." However, there is no change in the dates of the financial year, which ended on 31 March with a new one beginning on 1 April as usual. To reduce TDS, individuals may not find it possible to claim the deductions from their salary income through tax-saving instruments in the months of April, May, and June. The employers would have already deducted tax on income via TDS by March 2020 as usual. When tax-saving has already been done in April, May, and June, then deductions can be claimed when filing the income tax returns. For this, the total taxable income and the total tax liability on that has to be calculated. Then the TDS on salary can be adjusted against the total tax liability. If there is additional taxable income then the excess TDS will be adjusted to the tax payable on the other income source as well.

    17 April 2020

  • Faster income tax refunds in India

    Income tax refunds in the financial year 2019-2020 were done faster than those in the previous year. Whereas earlier tax refunds were sent using traditional paper cheques, now it is being refunded directly to bank accounts using the electronic clearing services. This has been the case since March 2019 which has resulted in faster and easier clearing of tax refunds. In the current financial year, 65% of tax refunds were cleared within 30 days of the income tax returns being verified. In the year 2018-2019, the percentage of tax refunds that were released within 30 days of verification was only 50%. In FY2019-20, the average time for release of tax refunds from the date of verification by the taxpayer was 59 days. For the same financial year, there are 33,175 cases which have pending refunds, which is 0.0001% of the total cases of refunds for the assessment year. This means that for AY2019-20, refunds were processed for 2.21 crore cases out of the 2.3 crore income tax returns that were filed, which comes to a percentage of 92% of tax refunds. The reasons behind delays are defective returns filed by the taxpayer, cases that are under scrutiny, and incorrect bank account details provided by the taxpayer.

    18 Mar 2020

  • Income tax refunds to be processed faster

    Taxpayers who have filed their tax returns recently can now expect their refunds to be processed faster than usual. The Central Board of Direct Taxes (CBDT) has asked the Income Tax Department to make the process quicker.

    Reports suggest that some taxpayers have already received their refunds within 10-15 days of filing and e-verification of returns. So, it is highly likely that taxpayers may get their refunds within 15 days of completing the return filing process, as long as no discrepancy is found while processing the returns. In case the return has not been e-verified after being filed, the refund processing may get delayed.

    After the taxpayer files and verifies a tax return, the ITR is processed by the tax department. The assessee will receive an intimation on the status of acceptance of the return. If any action is required by the taxpayer, he/she will be notified as well. Once the tax department accepts the refund claim, the intimation will show the refund amount that will be finally paid. The assessee can check the status of his/her tax refund using the reference number that will be available in the intimation.

    11 September 2018

  • August 31st is the deadline to complete all pending ITRs, Refunds - CBDT

    Central Board of Direct Taxes, CBDT has announced that the last date for filing of all pending ITRs and tax refunds is August 31st. This is applicable to taxpayers who have pending ITRs for six assessment years between 2009-10 to 2014-15. These taxpayers are required to authenticate their income tax returns using any of the online methods like Aadhar based verification or bank account-based.

    This verification must be completed before the 31st of August 2016. Alternatively, taxpayers can also send their ITR copies to the Bangalore office by speed post. CBDT is the central policy making body of the Income Tax Department and has been working towards making ITR filing as quick and hassle-free as possible.

    17 May 2016

  • Fiscal Year 2015-2016 Record Income Tax Refunds of Rs.1.22 lakh Crore

    According to the Income Tax Department, the financial year 2015-2016 made over 2.10 crore refunds totalling to Rs.1,22,425 crore rupees, compared to the previous fiscal year’s total of Rs.1,12,188 crore rupees.

    Over 94% of the returns were filed online in 2015-16. The Central Processing Centre (CPC) in Bengaluru processed 4.14 crore returns without the use of human labour. The Central Board of Excise and Customs (CBEC) and the Central Board of Director Taxes (CBDT) are currently making the best of technology to ensure faster assessment, refunds, custom clearance as well as to facilitate trade. E-payment of refunds such as central excise and service tax is being done via NEFT and RTGS. Therefore, service exporters receive 80% of refund amount in a matter of five days.

    9 May 2016

  • CNDT reduces issue Resolution Time to 15 days

    Considering the rising cases of refund-related grievances, CBDT has asked the Income Tax Department to reduce the processing time from 30 days to 15 days for the current fiscal. The idea is to reduce the time for processing and to clear off as many grievances as possible since the current number of pending requests is huge.

    This however, is a one time measure being employed only to lend speed to the process of grievance redressal and to clear out the huge number of pending requests with the department currently.

    23 March 2016

  • IT Department to Refund Tax in 15 days

    Central Board of Direct Taxes has issued fresh direction to IT Department to process the refunds within 15 days instead of 30 days in order to reduce the grievances. This is just a one-time measure to clear the backlog of refunds and it is valid till 31st March, 2016. Urgent steps are to be taken to resolve the disputes worth Rs.16,000 crore of over 1.49 lakh taxpayers by March end. CPC will issue refunds without adjustments if the jurisdictional AO does not respond within the stipulated time.

    15 March 2016

  • IT Refunds move faster due to the Upcoming Union Budget 2016-17

    If a citizen and taxpayer has contested for a tax refund, and has received no response he or she will receive the refund within 30 days. This is decided in order to make refunds faster, and time bound. The Finance Minister Arun Jaitley, will unveil steps to streamline and layout any procedure issues to get refunds of Income Tax.

    16 February 2016

  • Refund Process for Tax revolutionised by Online Certificates

    The online certificates introduced for the purpose of tax refunds have revolutionised the tax refund process and have made the whole process speedier. This is what the Chief Commissioner of Income Tax department had to say when asked about the impact of online certificates.

    The issue of refund is a complex issue for most taxpayers and used to involve a lot of hassle which has been cut down drastically in a single stroke with the launch of online certificates. Several such online and convenient processes have been introduced by the Income Tax Department to make the taxation process easier and friendlier for people. With the current success of these measures in the IT capital, Bengaluru, the department has decided to roll them out in all parts of the country for easier implementation of the taxation process.

    24 December 2015

  • IT Department to expedite refund claims under Rs 50,000

    In good news for taxpayers expecting a tax refund, the Central Board of Direct Taxes has instructed Income Tax officials to expedite refund claims for amounts under Rs 50,000. The government currently has pending refunds to the tune of Rs 5,400 crore, causing major problems for taxpayers. Refunds for amounts under Rs 50,000 account for around 80% of all refunds due for the last two years and the department hopes to settle these as soon as verification is completed.

    15 December 2015

  • Foreign Travelers might be Eligible for Tax Refund after Departure from India

    International travellers purchasing goods from India will be now eligible fortax refunda as per the proposed tax regime for goods and services. The goods and services reime is expected to replace several taxe levied by the Central and State Government.

    However, the new regime might cause trouble for exporters, who would lose access to duty-free imported inputs and eventually make upfront payments of GST that would only be refunded, later. Payment of the new tax will be possible through debit or credit cards.

    According to Prashant Deshpande, senior director at Deloitte in India, "A quick perusal of the reports indicates that the processes accommodate the peculiarities of state laws such as casual dealer, voluntary registration and compounding schemes as well as peculiarities of central laws such as input service distribution mechanism for service providers,"

    13 October 2015

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