How to claim your Income Tax Refund?
what is income tax Refund?
An income tax refund occurs when the taxes paid through methods such as Tax Deducted at Source, advance tax or self-assessment tax exceed the total tax payable for a given financial year. Most salaried employees have their refunds because their employer deducts their taxes based on the estimated amount of income generated without considering other exemptions or reductions.
Steps to claim your Income tax refund
1. File an ITR
The first and most important step is to file your Income Tax Return (ITR). A refund can only be processed when you file your ITR for the relevant financial year.
- Select the Right ITR form: Select the correct form according to your salary type-
ITR 1 : for salaried individual.
ITR 3 : for business income.
- Include all your sources of income: make sure you declare all sources of income to avoid errors that might take time before you get the refund amount.
- Claim the deduction under sections like 80c 80d or 80G to minimize your tax liability
2. Check the ITR
Once you file an ITR it is very important to do verification within 30 days, verification ensures that your return is treated valid. You can verify your ITR by:
- Aadhar
- Net Banking
- Electronic verification code (EVC).
- Sending a signed copy of ITR-V to Income Tax Department in Bangalore.
- Check refund status
3. Check Refund status
After the verification keep tracking the refund status on Income tax Department e filing portal:
- Log in using your Credentials
- Navigate to the ‘view returns section
- Check the refund status against your filed ITR.
In some cases, Income Tax Department may send a notice seeking clarification about your refund claim. Respond promptly to avoid delays.
How refunds are processed?
After Claiming the refund, the income tax department processes it and credits the amount directly to your bank account so its very important to ensure that all the details of your bank has no errors.
Modes of Refund
ECS transfer: in this the refunds are transferred through the bank account number mentioned in your ITR.
Cheque: In some cases, refunds may issued via cheque.
Timeline for refund
Generally, refunds are issued within 20-45 days after ITR verification. However, there may be delays due to the high volume during peak filing seasons.
Common mistakes to avoid during the refund:
* Incorrect Bank Details: Check your account number and IFSC code for correctness to avoid refund failures.
* Incomplete ITR Filing: Filing errors or omissions may delay the refund process.
* Mismatched TDS Details: Cross-check your TDS entries with Form 26AS for accuracy.
What to do in case of a Refund Delay :
* You can contact the CPC (Centralized Processing Centre) for the updates regarding the refund.
*You can log a complaint on the e-filing portal under the “Grievance” section.
*You can check if any pending tax liability is causing the delay of the refund.
Interest on delayed refunds :
If the refund procedure takes more than the specified period, then the Income Tax Department pays interest at a rate of 0.5% per month.
Conditions to Pay Interest:
- Interest is charged only if the refund amount exceeds 10% of the total tax paid.
- It is calculated from the date of the assessment year until the refund is issued.
If you notice any mistake in your refund claim, you can submit a revised return before the deadline for the respective assessment year, This rectifies the mismatch and accelerates the refunding process.
Important Documents to keep ready:
- Pan card
- Bank details
- Investment proofs and deduction
- Salary Slips
- Aadhar card
How Taxflick can help you?
Claiming a refund on income tax is relatively simple if the process is carried out correctly. Taxflick will help you in filing the return accurately, verifying it promptly, and monitoring the status of your refund will get you through this process without hassle. Keep your eyes open for any notices or discrepancies and act on them immediately to avoid delays. Being careful with every detail will allow you to obtain your rightful refund without unnecessary stress.
You can claim your Income tax refund online through the Income tax e-filing portal.
Follow these steps:
Step 1. File your ITR
Step 2. Verify the ITR
Step 3. Check refund status
Step 4. Refund processing and credit to your Bank account.
If your Income tax refund is pending, follow these steps to check the status or resolve any issue:
Step-1. Check the status via Income tax e-filing portal or via TIN NSDL website.
Step-2. Identify the reason for delay.
Step-3. Take action according to reason.
Step-4. Contact Income tax helpdesk (if needed).
You can check your Income tax refund status for FY 2024-25 by following these steps:
A. Through Income tax e-filing portal
  1. Visit Income tax e-filing portal.
  2. Login with your PAN and Password.
  3. Go to ‘services‘ > ‘refund status‘.
  4. Select Assessment year (AY 2025-26) for FY 2024-25.
  5. View your refund status.
B. Through TIN NSDL portal
  1. Go to TIN NSDL refund status.
   2. Enter your PAN and Assessment year (AY 2025-26).
   3. Click on ‘Submit‘ to see the refund details.
