Income Tax Refund Status

The process to claim Income Tax Refund

The refund process becomes quite simple and easy with the E-filing facility. Through the E-filing system, verification of the tax return is done electronically, and it helps you in getting the work done smoothly. With the e-filing system, refunds can be expected in a few days or months.

The simplest way of claiming an Income Tax Refund is through e-filing. When returns are filed electronically, there is no need to do the submission of Form 30 for claiming an Income Tax Refund. In case, you are not able to file a return or forgot to make a claim then returns can be revised within the due date and a claim request can be placed.

Ways in which refund payment can be done are:

1. Crediting the amount directly to the bank account or electronic clearing system: The income Tax Department credit the refund amount directly to the bank account as mentioned at the time of filing the Income Tax Return via ECS or NEFT.
2. Demand Draft or Cheque: Income Tax Refund can also be done via cheque or demand draft. The income Tax Department sends the cheque or demand draft to your communication address as mentioned in the Income Tax Return file via speed post.

Things to keep in mind related to Income Tax Refund

• Most people prefer to get a refund directly credited to the bank account after the introduction of the E-filing system.
• In case any dues left for the previous assessment year, in that case, the same can be set off against the total refund amount or part of it. As per the provision of Section 245, of the Income Tax Act, Assessing Officer can do so by responding to the intimation from the Income Tax Department.
• One is also entitled to receive interest on the refund amount if the refund amount exceeds 10% of the total tax liability for the assessment year.
• Interest on the refund is paid at the rate of 6% p a (simple interest basis) on the refund amount. Interest so received on the income tax refund is treated as income and taxable in the hands of the assessee.

The process to check the Income Tax Refund Status

An Online facility is given by the Income Tax Department for checking the Income Tax Refund. The steps are as follows:

• Most people prefer to get a refund directly credited to the bank account after the introduction of the E-filing system.
• In case any dues left for the previous assessment year, in that case, the same can be set off against the total refund amount or part of it. As per the provision of Section 245, Income Tax Act, Assessing Officer can do so by responding to the intimation from the Income Tax Department.
• One is also entitled to receive the interest on the refund amount if the refund amount exceeds 10% of the total tax liability for the assessment year.
• Interest on refund is paid at the rate of 6% p a (simple interest basis) on the refund amount. Interest so received on the income tax refund is treated as income and taxable in the hands of the assessee.

When the refund status is …

Refund Paid

The Income Tax Department has already processed your tax refund and refund banker has initiated the payment either by way of cheque or demand draft or through direct credit to your bank account (as per the details provided in e-filing return)

Step Forward: Check your bank account to confirm the receipt of the refund. In case you have not received the refund, here’s what you can do:

• If the payment mode was direct credit/ ECS, contact your bank or State bank of India to find out the error.
• Take the ECS reference number reflecting in your e-filing login and check with your bank to know the amount is not wrongly credited to some other bank account.
• You can also send a detailed email to State Bank of India via itro@sbi.co.in to check the status of refund credit. You can also contact them on 1800 425 9760.
• If the mode of payment selected while filing the return was cheque or demand draft, take out the dispatch details from State Bank of India to track the speed post.

“No Demand No Refund”

It is a situation where there is a mismatch found in the calculations from the side of both taxpayer and Income Tax Department. Your refund claim must have been denied by the department of Income Tax as they are not able to find excessive payment of tax after the scrutiny. It is wise to note down all the TDS details and other investment details which are to be correctly supported and filed.

Step Forward: You can take below corrective measures

• You can revise your return and include the deductions you have missed out earlier.
• You can file a rectification to justify the same. You will have to submit all the required documents to support your calculation. You can also take the help of tax experts to do so.

No e-filing was done for the assessment year

It is the case when you have to file an income tax return via electronic format and failed to do so. In that case, one needs to understand that for offline mode, Income Tax return does not provide any online facility for checking the refund status.

Step Forward

In case E-filing was not successful, you can again try to file Income tax return electronically or can also take the help of Assessing officer for paper-filed returns.

Refund Status Not Determined

This means the Income Tax Department is yet to process your income tax return and scrutinize your refund requirement.

Step Forward: You will have to wait for some more days, recheck the status after some more days.

Refund Determined and sent out to Refund Banker

It means when the Income Tax Department has already accepted your refund claim. After the acceptance of the refund claim, details of refund are sent to refund banker (State Bank of India) by the Income Tax Department.

Step Forward: You can wait for the refund credit or contact the refund banker to know the status of refund payment processing. You can get the tracking number for payments if already processed.

Refund Unpaid

There can be two reasons:

• In case of direct credit to bank account- the bank account details shared by you to the Income Tax Department could be incorrect. So please be assured to give the correct bank account details such as bank account number, IFSC code, MICR code etc.
• In case of Cheque or Demand draft payment - the cheque or demand draft must have been returned undelivered. This could be due to incorrect address mentioned in income tax return file.

Step Forward: Usually, reasons are displayed for the refund unpaid cases. Here is what you can do:

• Go through the details of the problem as mentioned in your e-filing login.
• You can correct the details online and ask for ‘’Refund reissue request’’ through your income tax India e- filing account.

Demand Determined

It is when the Income Tax Department finds out that are dues left from the Taxpayer side, so the Income Tax Department denied the refund claim by the taxpayer. The Income Tax Department would have sent you a notification with the details of tax dues outstanding.

Step Forward: Here’s what you can do-

• To find out where the actual problem lies, go through with the notification of the Income Tax Department. Verify the information with your e-filing form to figure out the mismatch or error.
• If there is an error in your e-filing request, then make a payment to the Income Tax Department within the specified timeline.
• In case there is no error in your e-filing request, file a rectification along with all the supporting information and documents to justify your refund claim.

Rectification Processed, Refund Determined and Details sent to Refund Banker

It is a case where the taxpayer gets an intimation to rectify the original return or already filed a rectification. At that time, this status notifies that the Income Tax Authority has recalculated the refund amount and sent the same to State Bank of Indian for further payment processing. You may also receive a revised intimation on the same.

Step Forward: Check your bank account to ensure the refund is credited

Rectification Processed and Demand Determined

There was an intimation to rectify the original return or you have filed a rectification, this status notifies that the rectified return is accepted by the Income Tax Department. However, the Income Tax Department states that there are still tax dues outstanding which need to be paid within a specified timeline.

Step Forward: Take help of assessing officers to take a corrective measure and pay the outstanding after cross verifying all the details once again.

Rectification Processed, No demand, and No Refund

In case there was intimation given by the Income Tax Department to rectify the original return or if you have filed a rectification, this status notifies that the rectified return is accepted by the Income Tax Department.

However, the Income Tax Department concludes that there is no tax due as well as no extra tax been paid by the taxpayer. And the clarification with facts will be intimated to you through notification from the Income Tax Department.

Step Forward: Go through the notification carefully to understand the facts.

Hence, it’s important to e-file the returns with the utmost care to get the income tax refund on time. Below are some important points and steps to follow for the e-filing income tax return.

Process to do E-Filing of Income Tax Return

The process of E-filing is very customer friendly. But needs to be assured that a small error occurs at the time of filing up return can land you in trouble by delaying the process of getting an Income Tax refund.

Here are a few crucial points to note while filing your income tax return electronically:

• Keep all the documents handy always.
• Collect all the TDS certificates from the deductors.
• Ensure digital signatures on TDS certificates are properly verified.
• Check the TDS certificates (Form 16 or Form 16A) in detail and verify the same.
• Ensure the TDS deducted by the deductor is forwarded to the government.
• Download the credit statement Form 26AS by logging into your Income Tax E-filing account. As all the TDS, which is being deducted, is updated in Form 26AS. One needs to be assured that every TDS certificate matches the form.
• If found any mismatch or error, raise the issue with the TDS deductor to get it rectified.
• After that, the computation of taxable income takes place. To do so, the taxpayer needs to add all the incomes from relevant sources including the TDS deductions or rebates being given, to get the net taxable income. Make sure nothing is missed out. Carefully examine and recheck the entries once again to ensure everything is in place.
• Apply the slab rate on the Net Taxable income and calculate the total tax payable by you for the assessment year. You can use the online tax calculator that is available on the IT department website (https://www.incometax.gov.in/iec/foportal/)
• After calculating the total tax liability for the year, deduct all the taxes paid during the year. Tax paid in the form of Advance tax or TDS is also part of the tax deductions.
• Make a payment of the outstanding tax amount in the form of Self-Assessment Tax which can be paid online via NSDL (https://onlineservices.tin.egov-nsdl.com/etaxnew/tdsnontds.jsp). The tax so paid will be reflected in your Tax Credit Statement Form 26 AS.
• After the updating of tax payment done in the Tax Credit Statement Form 26AS, e-file Income Tax Return for the Financial year.
• The due date for e-filing the income tax return is 31st July of every proceeding financial year unless the same is extended by the Income Tax Department.

Steps of e-filing income tax return:

• Log on to Income Tax Department’s e-filing website. Register yourself to get the login ID and Password
• The user ID is your PAN number. Enter your user id, password, date of birth, and captcha code to get into your e-filing account.
• After logging in, it’s important to choose the right income tax form applicable to you to file an income tax return.
• Ensure to provide every detail asked in the form correctly without any errors. Once the form filling is completed, cross-check all the details like contact number, communication address, bank account details, income details, and every other important detail.
• Make sure that the Taxpayer verifies always the income return filed. Verification of Income Tax Returns can be done both electronically via digital signature as well as through signing the physical form.
• Electronic verification can even be done by using Internet banking or by linking it to your Aadhaar card.
• If you are willing to do verification physically then you can download the acknowledgment slip or ITR-V generated after filling the online form.
• The hard copy of the downloaded ITR-V needs to be signed by the taxpayer for verification. The signed form needs to be sent to the Income-tax department as per the communication address mentioned on the form.