Last year, the process of claiming income tax refund was tweaked by the Income Tax Department. In order to claim an income tax refund, apart from filing an income tax return (ITR), you have to ensure that you have pre-validated your bank account. This should be the account in which you want to receive the income tax refund after your return is successfully filed or when filing ITR
Along with the pre-validation, you also have to link your PAN with your bank account. If they are not linked, you will not be able to get the income tax refund in your bank account. The income tax department had announced last year that it will issue only e-refunds. These refunds will be credited only to those accounts which are PAN and are pre-validated on the income tax e-filing website, www.incometaxefiling.gov.in.
Income Tax Refund can be claimed when:
You did not furnish all the investment proofs to your organization. As a result, the amount of taxes deducted by your employer exceeded your actual tax liability for the particular FY.
Excess TDS was deducted on your interest income from bank FDs or bonds.
The advance tax paid by you on self-assessment exceeded your tax liability for the applicable FY as per the regular assessment.
In case of double taxation
How to Claim Income Tax Refund?
Earlier Income Tax Form 30 was required to claim an income tax refund. However, with e-transfer of refunds, it can now be claimed by simply filing the ITR. The ITR should further be verified, either physically or electronically within 120 days of filing. The excess tax for which a refund is claimed should be reflected in Form 26AS. Moreover, the refund is subject to verification by the Income Tax Department. It is credited only if the refund claim is found to be valid by the department.
How to check Income Tax refund status?
Income Tax Refund status can be checked from either of the following:
On the NSDL website
On the e-filing portal of Income Tax Department
How to check tax refund status on NSDL Website:
Step 1: Go to the NSDL website to track refund.
Step 2: The following web page will appear. Fill in the details, including PAN and AY and click ‘Proceed’.
Step 3: Your income tax refund status will be displayed, as depicted in the following image.
How to check tax refund status on e-filing portal:
Step 1: Log into the e-filing portal of Income Tax department by clicking here.
Step 2: Select View Returns/ Forms.
Step 3: Go to ‘My Account’ tab and select ‘Income Tax Returns’. Click submit.
Step 4: Click on the acknowledgement number.
Step 5: A page showing your return details along with income tax refund status will appear.