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How to Get Your Income Tax Refund in Simple Steps?

How to Get Your Income Tax Refund in Simple Steps

When your paid taxes do not align with your actual tax liability, you are eligible for an income tax refund. You usually become aware of this refund while submitting your Income Tax Return (ITR). Once you have filed your ITR and the assessing officer approves it, you can receive your income tax refund.

This blog will teach you how to claim your TDS refund and other crucial related details.

Also read: Is Filing Tax Returns Important

What is the Process to Claim My Income Tax Refund?

Here are the steps you need to follow to claim your income tax refund:

Step 1: Visit the government income tax return filing portal using your PAN card details or create an account if you do not have one.

Step 2: Go to the ‘Download’ option and pick the current assessment year and the required ITR form.

Step 3: Download the Excel sheet where you have to provide the data as per the requirements of Form 16.

Step 4: If you have paid more tax than required, the excess amount will automatically be reflected in the ‘Refund’ part of the ITR form.

Step 5: Double-check your entered information and save the generated .XML file on your computer.

Step 6: Upload the .XML file on the portal by clicking the ‘Submit Return’ button.

Remember to complete the income tax refund form while submitting these documents. Additionally, if you claim a TDS refund online, consider filing Form 13 or 15G, depending on your claim.

When is the Deadline for Claiming an Income Tax Refund?

You have up to 12 months after the relevant assessment year ends to claim your income tax refund. However, certain conditions apply to these refund claims:

  • You can claim a tax refund on income tax paid within six consecutive assessment years. CBDT will not consider these refund claims older than this timeframe.
  • Your total refund claim for one assessment year must not be more than ₹50 lakhs.
  • CBDT does not provide any interest on tax refunds.
  • Officers may consider delayed tax refund claims if they require verification.

Also read: What FlyFin Can Do to Save You Money on Taxes

Who is Eligible for Income Tax Refund?

You are eligible for an income tax refund in the following cases:

  • You have paid more tax upfront through self-assessment than what you owe under regular assessment.
  • The tax deducted at source from your salary, interest, dividends, or other earnings is higher than your regular tax dues.
  • Your regular tax amount decreases due to a correction of assessment errors.
  • The same income is taxed in India and a foreign country with a double taxation agreement.
  • You have undisclosed investments and tax saving options other than 80C that offer tax benefits.
  • After reviewing your taxes and deductions, you find that you have paid more than you owe.

What are the Documents Required to Claim an Income tax Refund?

To claim your income tax refund, you need to provide the following list of documents:

  • Form 26AS: This form details the TDS and advance tax payments you made.
  • Form 16: Your employer issues this form, indicating the tax deducted from your salary.
  • ITR-V: After filing your return, you must submit this verification form to the Income Tax Department.
  • Bank Statement: Your bank statement includes information about tax payments you have made, like self-assessment tax, advance tax, or tax during regular assessment.

Also read: How to Choose the Right Tax Advisor

How to Check the Status of Income Tax Refund Online?

You can easily check your tax refund status online using various methods, which are as follows:

  • By visiting the official income tax e-filing website.
  • Access the Tax Information Network National Securities Depository Limited (TIN NSDL)website.
  • Via the mobile application provided by the tax authorities.
  • By contacting the customer care number of the tax department.

Follow the steps below to check your income tax refund status online:

Step 1: Visit the official income tax e-filing website.

Step 2: Sign in to your account using your PAN and password.

Step 3: Head to the ‘Refund or Demand Status’ section.

Step 4: Choose the applicable assessment year you wish to inquire about.

Step 5: Press the ‘Submit’ button to see your refund status.

By following the steps provided and ensuring you have the necessary documents, you can efficiently navigate through your income tax refund procedure. Remember to stay informed about the deadline for claiming your refund and utilise the available resources to check your refund status online.