The Income Tax Department has issued a refund of Rs 2.61 lakh crore for the financial year 2020-21. This is 42 per cent more than the previous financial year. If you too had claimed for Income Tax Refund and have not yet received the money in your account, then know what could be the reason behind it.
Which taxpayer gets a refund?
If the income tax deduction is more than payable in a year, then the Income Tax Department refunds the excess tax deducted to the taxpayers.
How is the refund paid?
After ITR processing, if the tax department feels that your claim is correct, then its information will be sent to you via SMS and email. In this message, the department will tell how much amount will be refunded in your account. In addition, he will also send a refund sequence number. This information is sent under section 143 (1) (Income tax notice) of the Income Tax Act.
How to know if a refund has come?
There are two ways to check refund status. First by visiting the Income Tax e-filing website and second by visiting the TIN NSDL website. During checking, you will be asked for PAN, assessment year details, and fill the captcha given in the image. Learn step by step process …
- First go to the website www.incometaxindiaefiling.gov.in.
- Log in to your account by entering details like PAN, password and captcha code.
- Click on ‘Review Returns / Forms’.
- Select ‘Income Tax Returns’ from the drop down menu. Select the assessment year for which you want to check your income tax refund status.
- Click on your enrollment number i.e. hyperlink.
- A pop-up will appear on your screen which will show the timeline of filing of returns. For example, when your ITR was filed and verified, the date of completion of processing, the date of refund issue, etc.
- Apart from this, it will also show the assessment year, status, reason for failure and mode of payment.
Is there any interest on the refunded amount?
If additional tax is paid to the government, then the Income Tax Department pays interest on the additional amount. Under Section 244A (1) (a) of the Income Tax Act, the taxpayer is entitled to interest on tax refunds in the event of payment of TCS, TDS or advance tax. A simple interest of 0.5% is applicable on a monthly basis.
What causes refund delays?
The sooner the IT return is filed, the faster the refund process will be. The IT department selects refund cases based on chronology. If there has been a delay in filing the return, then there can be a delay in processing the return and also in the refund case.
