How to claim income tax refund online when filing ITR for FY 2023-24 You can claim the refund when filing your income tax return (ITR) by the deadline of July 31, 2024 for FY 2023-24 (AY 2024-25)
You may be entitled to a tax refund if you have paid more taxes to the government than you owe. This typically occurs when the taxpayer's advance tax, self-assessment tax, and/or TDS, TCS deductions exceed their total tax liability for the fiscal year. You can get this tax refund when you file your income tax return (ITR). The deadline for filing the ITR is July 31, 2024 for FY 2023-24 (AY 2024-25). If you're entitled to an income tax refund, here's how to claim it.#sr_widget.onDemand p, #stock_pro.onDemand p{font-size: 14px;line-height: 1.28;} .onDemand .live_stock{left:17px;padding:1px 3px 1px 5px;font-size:12px;font-weight:600;line-height:18px;top:9px} #sr_widget.onDemand .sr_desc{margin:0 auto 0;} #sr_widget.onDemand .sr_desc{color: #024d99;margin-top:10px;} #sr_widget.onDemand .crypto .live_stock .lb-icon{8px 6px 5px 3px !important} #sr_widget.crypto.onDemand a.text{border-bottom:1px solid #ccc;padding-bottom:5px;display:block;width:100%} #sr_widget.onDemand .sr_desc .text p, #stock_pro.onDemand .sr_desc .text p{font-size:12px;font-weight:400;}
How to claim income tax refund
A taxpayer can request a refund for the surplus tax amount paid or deducted in a fiscal year by submitting their income tax returns for that year. Starting from 2018, the tax authority has introduced pre-filled ITRs on the internet-based platform. Nevertheless, verifying the pre-filled details in the ITR form is advised to prevent any mistakes.Also read: ITR filing: This is essential to get income tax refund credited to your bank account
After completing the appropriate ITR form, the income tax refund owed to you will be calculated automatically using either the online method or JSON utility. You can see this calculation in the 'Taxes Paid' section of the ITR form.
Please remember that the tax department may not necessarily accept and pay the refund amount you claimed when filing your ITR. The tax department will decide the refund amount, if any, after processing your ITR. After you file and verify your ITR, the income tax department will process it and authenticate the claim made.
It's important to ensure that the bank account where you want to receive the refund has been pre-validated. The tax authority has stated earlier that e-refunds will be sent to bank accounts that are linked to PAN and have been pre-validated on the new e-filing income tax portal.
After your tax return is processed, you will receive a notification on your registered email informing you about the status of your ITR processing. In most situations, you will receive a notification under section 143(1) of the Income-tax Act, 1961, showing one of the following outcomes:
(a) That your tax calculation matches that of the tax department and no further tax is payable by you;
(b) That your calculation does not match that of the tax department and there is additional tax (called tax demand) payable by you or your refund claim is rejected or accepted partially i.e. reduce the amount and;
(c) That your calculation matches that of the tax department and refund claim is accepted by it.
If the department wants more information or your case is picked up for scrutiny, notice under a different section may be sent to you instead of under section 143(1).
Also read: Income tax refund: How to raise refund reissue request; a step-by-step guide
If your refund request is approved, the notification will indicate the refund amount due to you. This notification will include the refund reference number. You can monitor the status of your refund on the new income tax e-filing portal. Another option is to check the refund status by going to https://tin.tin.nsdl.com/oltas/refundstatuslogin.html. The site is easy to use and only requires your PAN and assessment year information to check your refund status.
The State Bank of India (SBI) has been designated by the department to deposit refunds directly into the taxpayer's account. Therefore, it's important to ensure that you provide accurate bank details (including bank account number and IFSC code) in your ITR form to receive timely payments from the department.
When filing your ITR, you must designate the bank account where you want to receive the income tax refund. If the refund is approved, it will typically be deposited directly into this bank account.
Interest on income tax refund
An individual who files their income tax return (ITR) will receive interest on the tax refund, regardless of the deadline.
The calculation period for interest on refunds depends on the tax payment method.:
a) Where refund is of excess payment of advance tax or TDS or TCS:
(i) if return is filed on or before due date, period shall be from April 1 of relevant assessment year to the date of refund being granted OR,
(ii) where return is filed after the expiry of deadline, the period shall be date of furnishing ITR to the date of grant of refund
b) Where refund is of excess self-assessment tax paid: The period shall be from the date of furnishing of return or payment of self-assessment tax, whichever is later, to the date on which refund is granted.
c) In any other case: Interest shall be calculated from date of payment of tax or penalty (date on and from which the amount of tax or penalty specified in the notice of demand is paid more than such demand) to the date on which refund is granted"
However, no interest will be paid if the refund amount is less than 10% of the tax liability in cases (a) and (b). Additionally, any delay in refund payment caused by the deductor's actions will not be included in the total interest calculation period.It is important to note that the interest earned on the refund amount is subject to taxation. When filing a return for the relevant financial year, an individual must report the interest received on the refund as part of their gross total income.
Interest is calculated using the simple interest method on the amount due for refund at the rate of 0.5% for a month or part of the month or at 6% per annum.
Interest to be paid by you in case of excess refund by the department
Section 234D of the Act specifies that if the tax authorities, during the routine assessment of a return, discover that the refund amount issued to the taxpayer exceeds their eligible amount, they have the authority to recuperate the excess along with interest.Regular assessment entails reviewing the income tax return filed by the assessee and is conducted after the initial assessment. The initial assessment occurs when the return is processed for the first time.
The department charges the same interest rate on refunds as it pays out, which is 0.5% per month or 6% per year.
The period of interest is taken from the date of grant of refund till the date of the regular assessment and is calculated using the simple interest method.
Refund pending due to incorrect details
Sometimes, you may find that you have not received it despite filing your income tax return (ITR) and claiming a refund. This could be due to the following reasons:
1. After reviewing your filed tax return, the department has determined that no refund is owed to you. This decision will be communicated to you in the notice sent under section 143(1) of the Income Tax Act. Therefore, if the notice indicates a refund is due, it will be issued. However, if the notice indicates no refund is due, your refund claim was not accepted because your calculations did not align with the department's.
2. The department has approved the refund, but you have not received it because of inaccurate bank details. If the refund is being delayed because of the incorrect information you provided, you can request that the department reissue it after you supply the accurate bank details.
After submitting and confirming your ITR, it's important to routinely monitor the status of your return if you've filed for a refund. This will allow you to track your ITR's processing and any potential refund. Additionally, it will help you identify any errors in your filing.
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This story originally appeared on: India Times - Author:Faqs of Insurances
